There are two tax credits available for 2012 to help you offset the costs of higher education. Under the American Opportunity Credit, a credit of up to $2,500 may be claimed for qualified education expenses paid for each eligible student. The Lifetime Learning Tax Credit provides for a maximum $2,000 per year, and is available for any year of post secondary education including graduate work.

Read more about tax benefits for education in this guide from TurboTax.