What is the lifetime learning credit?

The lifetime learning credit is a tax benefit designed to help students offset the costs of higher education. It applies specifically to qualifying tuition and related educational expenses incurred by individuals who are enrolled in eligible educational institutions. This credit can be claimed for an unlimited number of tax years and covers a portion of the costs associated with both undergraduate and graduate courses, making it particularly beneficial for lifelong learners who may not be pursuing a degree but are still enhancing their education through coursework.

While the other options mention various forms of financial assistance or benefits related to education, they do not accurately define the lifetime learning credit. The credit is unique in that it directly reduces the taxpayer's liability by providing a specific dollar-for-dollar reduction on the amount of taxes owed, unlike deductions that simply reduce taxable income.