American Opportunity Tax Credit
Taxpayers who pay registration/tuition and other fees for attending college on a half-time basis or more may be eligible to claim the American opportunity credit against their federal income tax.
This credit is designed to offset tuition costs incurred during four years of college and is available only for tuition and required fees paid. Financial aid awards including Pell grants, SEOG and institutional waivers, grants, scholarships and other forms of tax-free educational assistance may reduce the credit. The maximum credit is $2500 per student.
More information is available in the IRS Publication 970 Tax Benefits for Education.