If you have a child or grandchild in college, there are tax breaks you may be able to claim after the child begins attending. For example, you can take the American Opportunity Tax Credit of up to $2,500 per student for the first four years of college, a 100% credit for the first $2,000 in tuition, fees, and books, and a 25% credit for the second $2,000. You can take a Lifetime Learning Credit of up to $2,000 per family for every additional year of college or graduate school — a 20% credit for up to $10,000 in tuition and fees. Both credits are phased out for married joint filers with modified adjusted gross income between $160,000 and $180,000, and for singles between $80,000 and $90,000.
