Illustrated Example(p37)

Judy Green, a single taxpayer, is taking courses at a community college (not in a Midwestern disaster area) to be recertified to teach in public schools. Her MAGI is $27,000. Her tax, before credits, is $2,234. She claims no credits other than the lifetime learning credit. In July 2009 she paid $700 for the summer 2009 semester; in August 2009 she paid $1,900 for the fall 2009 semester; and in December 2009 she paid another $1,900 for the spring semester beginning January 2010. She received Form 1098-T (shown below) from the college. Judy and the college meet all the requirements for the lifetime learning credit. She can use all of the $4,500 tuition she paid in 2009 when figuring her credit for her 2009 tax return. She figures her credit as shown on the filled-in Form 8863 on the next page.