NASFAA.org has information on the 2017 Tax Year Federal Tax Benefits for Higher Education and an explanation of the tax credits and deductions available for the 2017 tax year:
Educational Tax Credit
An education tax credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. There are two education credits available: the American Opportunity Tax Credit and the Lifetime Learning Credit.
- 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.