Here are the 3 education tax breaks : 
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The American opportunity can be up to $2,500 per eligible student. You can claim this credit for four years for the same student.
You cannot claim the American opportunity credit if:
- your filing status is married filing separately
- you're claimed as a dependent by another taxpayer
- your modified adjusted gross income is $90,000 or more ($180,000 or more in the case of a joint return)
- you or anyone else claims the lifetime learning credit or tuition and fees deduction for the same student in 2010.
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The lifetime learning credit can be up to $2,000 per return.
The lifetime learning credit is available for:
- All years of post-high school education and for courses to acquire or improve job skills
- An unlimited number of years
- Students who are not pursuing a degree, certificate or credential
- One or more courses
- Those with felony drug convictions.
You can claim the lifetime learning credit for you and your dependents.
You cannot claim the lifetime learning credit if:
- your filing status is married filing separately
- you are claimed as a dependent by another taxpayer
- your modified adjusted gross income is $60,000 or more ($120,000 or more in the case of a joint return)
- you or anyone else claims the American opportunity credit or tuition and fees deduction for the same student in 2010.
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The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000.
Qualifications include:
- the student enrolled in the school must be you, your spouse, or your dependent
- the tuition and fees that were paid are required for enrollment or attendance at an eligible post-high school institution.
You can claim the tuition and fees deduction for you and your dependents
You cannot claim the tuition and fees deduction if:
- your filing status is married filing separately
- you are claimed as a dependent by another taxpayer
- your modified adjusted gross income is $80,000 or more ($160,000 or more in the case of a joint return)
- you or anyone else claims the American opportunity credit or lifetime learning credit for the same student in 2010.
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Although a student may be eligible for more than one education deduction or credit, he or she can claim only one. If you are using tax software, the program will automatically selects the best combination of education deduction and credits to give you the biggest refund or smallest amount of tax due.
Note:
Usually, the software will also allow you manually to choose the deductions and credits you want to take if you are eligible for them.
for more details, please refer to:
http://www.irs.gov/newsroom/article/0,,id=211309,00.html
http://turbotax.intuit.com/tax-tools/tax-tips/College/Sending-Kids-to-College/INF12038.html
