If the family has more than one enrolled in college at the same time and incurs qualified tuition and fees for both, the taxpayer may claim the American Opportunity Credit or Lifetime Learning Credit, along with the Tuition and Fees Deduction on the same taxpayer return. This is done by claiming the American Opportunity Credit or Lifetime Learning Credit using one students education expenses, and using the other students education expenses for the tuition deduction.
Janice is taking on-line classes, as well as having a daughter in college. She can take the expenses she incurs for the tuition deduction, and use the expenses from her daughters tuition and fees for the American Opportunity Credit or Lifetime Learning Credit.
If you are in a combined (federal, self-employment, and state) tax bracket of 30%, you could reduce your taxes up to $300 for every $1,000 of income reduction by claiming the tuition deduction as well as an education tax credit.