As schools get back in session, it's a good time to check
the education tax breaks for which you might qualify. First, there's the
"American Opportunity Tax Credit" for a percentage of qualified
expenses paid during the first four years of higher education. Second, the
"Lifetime Learning Credit" allows a deduction for a percentage of
qualified expenses paid for any year the American Opportunity Credit isn't
claimed, and it even applies to job-related classes. Third, you may qualify for
a deduction for interest paid on student loans. Fourth, education savings accounts
allow annual nondeductible contributions for children under 18, with tax-free
withdrawals for qualifying education expenses.
