Did you know that the Internal Revenue Service (IRS) provides tax benefits for education? 
The tax benefits can be used to get back some of the money you spend on tuition or loan interest or to maximize your college savings. Read IRS Publication 970, Tax Benefits for Education to see which federal income tax benefits might apply to your situation. Here are some highlights : 

Tax Credits for Higher Education Expenses 
Two tax credits help offset the costs tuition, fees, books, supplies, equipment of college or career school by reducing the amount of your income tax : The American Opportunity Credit 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. The Lifetime Learning Credit allows you to claim up to $2,000 per student per year for any college or career school tuition and fees, as well as for 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 do so! If you don t , you ll miss out on tax credits that would put money in your pocket. 

Coverdell Education Savings Account 
A Coverdell Education Savings Account allows up to $2,000 a year to be put aside for a student s education expenses elementary, secondary, or college or career school. 

Qualified Tuition Programs (QTPs; also known as 529 Plans) 
A QTP/529 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. Learn more about state 529 plans. To find out whether the college you plan to attend participates in a QTP , ask the financial aid or admissions staff. 

Student Loan Interest Deduction 
You can take a tax deduction for the interest paid on student loans

user: Are there any tax benefits that I can avail of when paying for education?

assistant: Yes there are, you can earn tax benefits to get back some of the money you have spent on education, which will maximize your college savings

user: Where can I find more information on Qualified Tuition Programs?

assistant: The best advice is to contact the financial aid or admissions staff at your school, they can help you with all of this

user: I am interested in the Student Loan Interest Deduction scheme, can you give me further information about this please?

assistant: If you took out a student loan for yourself, your spouse or your dependent, you can avail of a tax deduction for any interest that was paid on these loans. This tax benefit applied to all loans that were taken out for education, not just federal student loans. The maximum deduction that you can avail of is $2,500 per year

user: Can you give me some more information on tax credits that are available for higher education expenses?

assistant: There are currently two types of tax credits available. Thes credits offset the costs of tuition, fees, books, supplies or equipment which ultimately reduces the amount of income tax that you pay

assistant: Do you normally file an annual personal tax return?

user: No, I have never done so up until now

user: Is it possible to withdraw from an IRA to help with college costs?

assistant: You are able to withdraw from an IRA to pay the higher education costs for yourself, your spouse, your child or even your grandchild