There are several education-related tax deductions that could also provide tax benefits.
Student Loan Interest Deduction
Depending on your income, you can take a special deduction for the interest you paid during the year on qualified student loans. The deduction can reduce your taxable income by up to $2,500 and can be claimed even if you do not itemize deductions on your tax return.
See IRS Publication 970, Tax Benefits for Education, for income thresholds and other requirements.
Work-related Education Business Deduction
This deduction may benefit workers (including those who are self-employed) who itemize their deductions and paid for work-related education.
Claiming this deduction may reduce the amount of income you earn that is subject to tax. There are certain requirements you must meet to claim this deduction, and it cannot be claimed in addition to other education credits for the same expense.
Visit the IRS’s Information Center for tax benefits for education to learn about all the requirements.
MISCELLANEOUS: Educator Expense Deduction
The Educator Expense Deduction is not applicable to students or their parents pursuing higher education but is an important education-related tax benefit. Essentially, this deduction allows educators the opportunity to to deduct up to a certain amount for unreimbursed business expenses like books, supplies, computer equipment, classroom equipment and other materials used in the classroom.
The educator does not need to itemize deductions to take this credit. Read the IRS Tax Topic on Educator Expense Deduction for more details about how educators can qualify for this deduction.