For the 2017 tax year, two tax credits are available to help you offset the costs of higher education. You may be eligible to claim an education credit if you, your spouse, or a dependent you claim on your tax return was a student enrolled at or attending an eligible educational institution. The credits are based on the amount of qualified education expenses paid for the student for academic periods beginning in 2017 and in the first three months of 2018.
Lifetime Learning Tax Credit
The Lifetime Learning tax credit is a non-refundable federal income tax credit of up to $2,000 (20% of the first $10,000) for qualified tuition and related expenses. https://www.irs.gov/credits-deductions/individuals/llc
American Opportunity Credit
The American Opportunity Credit is a refundable credit up to $2500 (100% of the first $2000 and 25% of the next $2000 ) for qualified expenses paid for each eligible student during the taxable year. https://www.irs.gov/credits-deductions/individuals/aotc
In addition to the two tax credits, the student loan interest deduction may be available to you.
Student loan interest deduction
Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntarily pre-paid interest payments. You may deduct the lesser of $2,500 or the amount of interest you actually paid during the year. The deduction is gradually reduced and eventually eliminated by phaseout when your modified adjusted gross income (MAGI) amount reaches the annual limit for your filing status.
NOTE: These summaries are meant to give a general overview of these educational tax initiatives. Consult a tax advisor or IRS Publication 970 regarding the specifics of your personal situation.