College can be very expensive. To help students and their parents, the IRS offers the several ways to offset education costs. For more information, see Publication 970, Tax Benefits for Education, which can be obtained online at IRS.gov or by calling the IRS at 800-TAX-FORM (800-829-3676).
The Lifetime Learning
This credit provides a federal income tax credit of up to $2,000 per taxpayer based on the first $10,000 in postsecondary tuition and fees paid by the taxpayer during the tax year. The Lifetime learning tax credit is 20% of the first $10,000. The tax credit may be received for an unlimited number of years.
IRS Form 1098- T is used to determine eligibility for the tax credits referenced above. To learn more about the process click here.
Student Loan Interest Deduction
Borrowers of federal and private education loans may deduct up to $2,500 in interest as an above-the-line exclusion from income. This deduction may be taken even if the taxpayer does not itemize.
To watch short video clips on Education Credits
To see a list of Education Tax Benefits.