IRS Publication 970, Tax Benefits for Education, will help you determine which federal income tax benefits you may qualify for. Some of the benefits are:
There are two credits that help offset the costs of tuition, fees, books and equipment by reducing the amount of your income tax:
This allows you to claim up to $2,500 per student per year for the first four years of school as the student works toward a degree or similar credential.
This allows you to claim up to $2,000 per student per year for any college or career school tuition, fees, books, supplies and equipment that were required for the course and had to be purchased from the school.
Even if you normally wouldn't file a tax return because of your income level, be sure to look into it! If you don't you'll miss out on the tax credits that would put money in your pocket.
This allows up to $2,000 a year to be put aside for a student's education expenses (elementary, secondary, or college)
This plan is established by a state or school so that you can either prepay or save up to pay education-related expenses. Once you're in college or career school and you withdraw money from your account to pay your education expenses, the money you withdraw will not be taxed.
You can take a tax deduction for the interest paid on student loans that you took out for yourself, your spouse, or your dependent. This benefit applies to all loans (not just federal student loans) used to pay for higher education expenses. The maximum deduction is $2,500 a year.