There are several education tax breaks to help taxpayers pay for college. These include the American Opportunity Tax Credit (AOTC), Lifetime Learning Tax Credit (LLTC), Student Loan Interest Deduction, Education Savings Bond Program, Coverdell Education Savings Accounts and 529 College Savings Plans.
Some of these tax breaks involve tax credits and some involve an exclusion from income, often called a deduction. Each tax break has different eligibility restrictions and different definitions of eligible expenses. Some of the requirements are adjusted annually for inflation and some are not.
