A "tax deduction" is a tax benefit offered by either the IRS or a state / local government for spending your money on certain things such as college tuition.
A deduction reduces the amount of income on which your tax liability is calculated. In theory, someone who makes hundreds of thousands of dollars but can find enough legitimate deductions, may pay little or no tax.
Since there are numerous tax rates which may be applied to each individual's adjusted gross income level, the same deduction may be worth something very different to two different people.
This is very different than a tax credit, which lowers every eligible taxpayers' liability by the same amount for the same credit.
There are two primary types of Federal income tax deductions associated with college planning, the Tuition and Fees Deduction and the Student Loan Interest Deduction. Additionally, many states offer state income tax deductions for paying college tuition, especially at an in-state school.
