The federal government provides a number of tax incentives that can help lower the cost of higher education. These incentives include:
Tax credits directly reduce the amount of tax you pay.
Tax deductions reduce the amount of your income that is taxed.
You may qualify for more than one of these incentives, but there are some restrictions. It's a good idea to calculate your taxes in multiple ways to find the maximum benefits available to you.
Each year, students and their parents enjoy more than $20 billion in savings through federal education tax credits and tuition deductions.