You may be able to save money with higher education credits.

Higher education costs paid in 2016 can mean tax savings in 2017. If you, your spouse or your dependents took post-high school coursework last year, you may be eligible for a tax credit or deduction.

Here are some facts about key tax breaks for higher education.

American Opportunity Credit (AOTC) is:

• Worth up to $2,500 per eligible student. • Used only for the first four years at an eligible college or vocational school.
• For students earning a degree or other recognized credential.
• For students going to school at least half-time for at least one academic period that started during or shortly after the tax year. Use Form 8863 to claim the education credits.

Lifetime Learning Credit (LLC) is:

• Worth up to $2,000 per tax return, per year, no matter how many students qualify.
• For all years of higher education, including classes for learning or improving job skills.
• Use Form 8863  to claim the education credits.

Tuition and Fees Deduction is:

• Claimed as an adjustment to income.
• Claimed whether or not you itemize.
• Limited to tuition and certain related expenses required for enrollment or attendance at eligible schools.
• Worth up to $4,000.
• We use Form 8917 to claim the tuition and fees deduction.

Additionally:

Beginning in 2016, to be eligible for an education benefit, you’re required to have Form 1098-T, Tuition Statement. You should receive this form from the school you attended. There are exceptions for some students.

• You may only claim qualifying expenses paid in 2016.
• You can’t claim either credit if someone else claims them as a dependent.
• You can’t claim either AOTC or LLC and the Tuition and Fees Deduction for the same student or for the same expense in the same year.
• Income limits could reduce the amount of credits or deductions you can claim.