Paying for your education can be a challenge and we want you to take advantage of every benefit available for the financial commitment you have made. The federal government offers several income tax benefits for education costs, including the American Opportunity Credit and the Lifetime Learning Credit. These are available to students and parents who paid tuition at a post-secondary school in the tax year, subject to IRS rules. Also, once you have completed your education, you might also be eligible to deduct the cost of interest paid on your student loans.