Tax Preparer Practice Exam 2025 - Free Tax Preparer Practice Questions and Study Guide

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What is the maximum lifetime learning credit per return?

$1,000

$2,000

The maximum lifetime learning credit available per tax return is $2,000. This credit allows taxpayers to claim up to 20% of the first $10,000 in qualified education expenses for eligible students enrolled in post-secondary education. The lifetime learning credit is particularly beneficial because it is available for an unlimited number of tax years and can be claimed for various types of educational endeavors, including courses that maintain or improve job skills.

This credit is designed to help offset the costs of higher education by reducing the taxpayer's overall tax liability, making education more accessible. Importantly, the lifetime learning credit can be claimed for each eligible student, so if there are multiple students in the household pursuing education, the credit can be applied to each, although it is still capped at the $2,000 limit for the entire return.

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$3,000

$4,000

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