IRS Publication 970

A document published by the Internal Revenue Service (IRS) that provides information on tax benefits available to students and families saving for college. It explains the tax treatment for the most common forms of college funding types, such as scholarships, fellowships and grants.

The document outlines three tax credits that can be taken advantage of: the American Opportunity Tax Credit, the Hope Credit and the Lifetime Learning Credit. In addition, IRS Publication 970 covers additional tax benefits, including student loan interest deductions and Coverdell education savings accounts (ESAs).

The IRS typically restricts claiming more than one tax benefit for a single qualifying expense. This means, for example, that a taxpayer taking classes generally cannot take a deduction for a work-related class while also deducting tuition and fees because those are two separate benefits related to the same expense.