14 Education Tax Credits and Deductions to Know

Paying for education expenses is no joke. Recent data show that educators spend from $500 to $900 of their own money on school supplies, while families spend $1,168 annually on K-12 education expenses (never mind higher education costs).

Yet, the 2025 Trump tax bill changed the state of play for many students and families who claim key tax breaks to offset these educational costs.

For instance, starting in 2026 (returns typically filed in 2027), new rules governing 529 plans allow $20,000 to be paid for K-12 expenses, up from $10,000. Educators can reduce taxes by up to $350 annually with the educator expense tax deduction.

However, college and higher-education students face changing tax requirements in 2026, particularly surrounding student loans.

If you're an educator, a current student, a recent graduate paying off student loans or a loved one saving for a child's education, here's what you need to know about education tax credits and deductions.