The federal government provides a number of tax incentives that can help lower the cost of higher education. These incentives include:
Tax credits directly reduce the amount of tax you pay.
Tax deductions reduce the amount of your income that is taxed.
You may qualify for more than one of these incentives, but there are some restrictions. Here's a guide from National Association of Student Financial Aid Administrators (NASFAA) to help you navigate the different tax credits available to families.