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 available from the IRS in relation to education costs?

assistant: Yes, there are benefits applicable, you can use these benefits to recoup some of the expenses that you have spent on tuition or loan interest. You can also use the benefits to maximize your college savings

user: Is it possible for me to withdraw funds from an IRA account to cover my college costs?

assistant: Yes, this is possible. You will need to pay income tax on the amount you withdraw from your IRA account, but no early withdrawal penalty will be applicable

user: How do I go about applying for tax credits for my education costs?

assistant: You will need to file a tax return, even if you normally don't do this because of your income level

user: I have heard about Qualified Tuition Programs, what exactly are they?

assistant: These are plans that are provided by a state or a school which allows you to either prepay or save up to pay your education costs. When you use these funds for your college career, the money that is withdrawn from the account is not subjected to tax

assistant: Does the college that you are hoping to attend participate in QTP's?

user: I am unsure but I don't think so

user: What happens if I don't file a tax return, am I missing out on something?

assistant: You will miss out on tax credits that will give you money back