If your child is going back to college this fall, you may be in line for either one of two higher-education credits:
1. American Opportunity Tax Credit (AOTC): The maximum $2,500 AOTC may be claimed for each student in the family. It is available for up to four years of study.
2. Lifetime Learning Credit (LLC): The maximum $2,000 LLC applies to each taxpayer. So the credit is limited to $2,000 no matter how many children are in school.
Alternatively, you might claim a tuition deduction. But all these higher-education tax breaks are phased out for higher-income parents.