Updated October 19, 2026. Quick answer: Publication 970 is the IRS guide to education tax benefits, from scholarships and two education credits to student loan interest, Coverdell accounts and qualified tuition programs. The edition on irs.gov is for 2025 returns.
Quick reference
| Item | As the IRS publication states it |
|---|---|
| American opportunity credit, maximum per eligible student (Table 2-1) | $2,500 |
| Lifetime learning credit, maximum per return (Table 3-1) | $2,000 |
| MAGI limit for both credits, single filer (Tables 2-1 and 3-1) | $90,000 |
| MAGI limit for both credits, married filing jointly (Tables 2-1 and 3-1) | $180,000 |
| Student loan interest deduction, maximum (Table 4-1) | $2,500 |
| Coverdell ESA contributor MAGI under, single filer (Table 6-1) | $110,000 |
What the publication covers
The first page of the web edition reads “For use in preparing 2025 Returns”. The introduction says “This publication explains tax benefits that may be available to you if you are saving for or paying education costs for yourself or, in many cases, another student who is a member of your immediate family.” It adds “Most benefits apply only to higher education.”
The chapters cover scholarships, fellowship grants and tuition reductions; the American opportunity credit; the lifetime learning credit; the student loan interest deduction; Coverdell education savings accounts; qualified tuition programs; the education exception to the additional tax on early IRA distributions; the education savings bond program; employer-provided educational assistance; and the business deduction for work-related education. An Appendix compares the benefits side by side, and a glossary defines terms such as qualified education expenses and modified adjusted gross income (MAGI).
The two education credits
For the American opportunity credit the publication says “For 2025, you may be able to claim a credit of up to $2,500 for adjusted qualified education expenses paid for each student who qualifies for the American opportunity credit.” Table 2-1 gives the MAGI limit as “$180,000 if married filing jointly; $90,000 if single, head of household, or qualifying surviving spouse”. It also says the credit is “Available ONLY for 4 tax years per eligible student”.
Table 3-1 puts the lifetime learning credit at “Up to $2,000 credit per return” and says it is “Available for an unlimited number of tax years”. On choosing between them, the publication says “For each student, you can elect for any year only one of the credits.”
Both credits need Form 1098-T in most cases. This site has pages on Form 8863, Form 1098-T and education credits.
Student loan interest
Table 4-1 says “You can reduce your income subject to tax by up to $2,500.” The same table gives the MAGI limit as “$200,000 if married filing a joint return;” for joint filers and “$100,000 if single, head of household, or qualifying surviving spouse.”
The publication says the deduction is generally figured with the Student Loan Interest Deduction Worksheet in the Schedule 1 instructions, and this site has a page on the student loan interest deduction worksheet.
Savings accounts and other benefits
Table 6-1 describes who can hold a Coverdell account: “Any beneficiary who is under age 18 or is a special needs beneficiary.” It describes who can contribute: “Generally, any individual (including the beneficiary) whose MAGI for the year is less than $110,000 ($220,000 in the case of a joint return).”
The qualified tuition program chapter covers contributions, taxable distributions and rollovers. The worksheets inside the publication are Worksheet 1-1 for athletic scholarships, Worksheets 2-1 and 3-1 for MAGI under each credit, Worksheet 4-1 for the student loan interest deduction, and Worksheets 6-1, 6-2 and 6-3 for Coverdell accounts.
Changes the publication flags
A separate heading, What’s New for Tax Year 2026, says “Beginning in 2026, individuals claiming the American opportunity credit or the lifetime learning credit will be required to have a Social Security Number (SSN) that is valid for work and that was issued before the due date of the return.”
Where to go next
See student loan interest deduction, Form 1098-E boxes 1 and 2, 529 state tax benefits and Schedule 3 line 3 education credits.
Where this comes from
The IRS page About Publication 970 opens with “This publication explains tax benefits that may be available to you if you are saving for or paying education costs for yourself or, in many cases, another student who is a member of your immediate family.” It links the PDF and eBook editions and the earlier revisions of the publication.
This page describes the web edition of Publication 970 (2025), Tax Benefits for Education, as served on irs.gov on October 19, 2026. The IRS can revise a publication after we read it, and the IRS page controls. General information, not tax or legal advice.
Common mistakes
- Claiming both credits for one student in one year. The publication says only one of the two credits can be elected for each student in any year.
- Treating the American opportunity credit as open ended. Table 2-1 limits it to 4 tax years per eligible student, while Table 3-1 has no limit on years for the lifetime learning credit.
- Reading the 2026 identification requirement as applying to 2025 returns. It sits under its own heading, What’s New for Tax Year 2026.
- Relying on one table. Table 4-1 itself says “Don’t rely on this table alone. Refer to the text for more details.”
Related: IRS publications by number, Form 8863, Form 1098-T, Education credits, Student loan interest deduction worksheet, Student loan interest deduction, 529 state tax benefits, and Schedule 3 line 3 education credits.
Sources
- IRS, Publication 970 (2025), Tax Benefits for Education (irs.gov): https://www.irs.gov/publications/p970
- IRS, About Publication 970 (irs.gov): https://www.irs.gov/forms-pubs/about-publication-970
Read from the IRS pages linked above on October 19, 2026. General information, not tax or legal advice. The IRS publication and the instructions for your own form control, and your own facts decide the outcome.