There are a number of tax credits and deductions for students, as well as recent graduates and families with children in school. (A tax credit reduces the amount of income tax the IRS requires you to pay, while a deduction minimizes the amount of your income that is taxable.) American Opportunity Tax CreditWith the American Opportunity Tax Credit (AOTC), you can get an annual credit of $2,500 per eligible student for qualified education expenses, such as tuition. Lifetime Learning CreditThe Lifetime Learning Credit (LLC) is worth up to $2,000 and is for qualified educational expenses, such as tuition and fees. But the LLC credit is not refundable; if the credit brings your tax liability to zero, you will not get any money back, unlike the AOTC.

Source: Forbes February 16, 2017 10:52 UTC