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Author: JRS3 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121563  
Subject: Lifetime Learning Credit Date: 2/28/2000 11:53 AM
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IRS Publication 970 states that the Lifetime Learning Credit is nonrefundable, but neither Form 1040 nor it's instructions say anything to that effect. The form you fill out to take the credit (8863, I think) also says nothing to this effect. The instructions for this form are also mute on this nonrefundability. Without the credit, I am going to get an $80 refund. If I add the credit, I would get just over $1000 back. I am married filing jointly, no kids, well under the income limits, but confused as to why one document would state such an important point so clearly, and the other would completely ignore it. Any ideas, anyone? Thank you very much in advance!!
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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 30279 of 121563
Subject: Re: Lifetime Learning Credit Date: 2/28/2000 1:09 PM
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JRS3 writes (in part):

IRS Publication 970 states that the Lifetime Learning Credit is nonrefundable, but neither Form 1040 nor it's instructions say anything to that effect.

I reply:

The word "nonrefundable" doesn't mean that you can't get a refund of overwithheld taxes. It simply means that you can't use the credit to reduce your total tax due for the year below $0. Form 1040 probably has one of those "subtract line x from line y, but if the difference is less than zero, enter zero" statements, and that takes care of the mechanics. --Bob

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