If you are attending school and pay tuition, fees and interest on student loans, you may be able to claim tax credits or income deductions on your tax returns. Additionally, if you are currently saving for college, you can get a break on the interest you earn with certain accounts.

American Opportunity Credit

The American Opportunity Credit is available to people who make less than $80,000, have qualifying expenses and take certain courses. You can claim a maximum credit of $2,500 for the first four years of post-secondary education.

Lifetime Learning Credit

You can claim the Lifetime Learning Credit (up to $2,000) for tuition and other qualifying expenses for as many years as you attend school. You cannot claim this credit along with the American Opportunity Credit.

Tuition Deduction

If you choose not to take a tax credit for your tuition and fees, you can deduct the amount you paid for tuition (up to $4,000) from your income.

Student Loan Interest Deduction

You may also deduct any interest you have paid on your student loans (up to $2,500) from your income as long as your adjusted gross income is under $70,000.

Tax-Free Interest

Certain savings accounts allow you to earn interest tax free. These accounts include the 529 Plan and the Coverdell Education Savings account. Distributions from these accounts are also tax free provided they are used for qualifying expenses and are less than the cost of tuition.

Source:

IRS.gov: Tax Benefits for Education