Tax credits, deductions and savings plans can help taxpayers with their expenses for higher education. A tax credit reduces the amount of income tax you may have to pay. A deduction reduces the amount of your income that is subject to tax, thus generally reducing the amount of tax you may have to pay..Find the answers to the most common questions you ask about the Education Credits-- the American opportunity tax credit AOTC and the lifetime learning credit LLC . See Education Credits: AOTC and LLC for more information. A26. Yes, see the Tax Breaks for Education: Information Center for more information..Educational ins.ution 's EIN required. To claim the American opportunity credit, you must provide the educational ins.ution 's employer identification number EIN on your Form 8863. You should be able to obtain this information from Form 1098-T or the educational ins.ution. See chapter 2 . Form 8862 may be required..The qualified expenses must be for higher education. The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. This deduction, reported on Form 8917, Tuition and Fees Deduction, is taken as an adjustment to income..
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