How to Save Money on Your Kid's Tuition

Here are a few more things to consider:

• If you or your spouse are taking a class to improve your current job skills, then any expenses you use with the Lifetime Learning Credit or the tuition and fees deduction can be deducted as miscellaneous itemized deductions on Schedule A -- Itemized Deductions. That includes the remaining costs of your tuition in addition to books and other fees.
• Taxpayers who are married but filing separately are not eligible for the Hope Credit, Lifetime Learning Credit or the tuition and fees deduction.
• If your child is working and you do not claim him or her, it might be better for your child to take one of these credits, since his or her AGI will be lower than yours, especially if you're a high-income family, reminds Scharin.

So be sure to crunch some numbers. You want to make sure that while your kid is having the most expensive time of your life, you're keeping some money in your pocket.

Next in the tax series: Answering Your Taxing Questions

TheStreet.com tax series previously featured:

• Get Your One-Time Phone-Tax Refund
• Don't Fear the Auditor
• A Reason to Procrastinate
• Booyah Breakdown: Taxes for Traders
• Don't You Miss a Tax Credit or Deduction
• Booyah Breakdown: Taxes for Traders
• How to Choose the Right Tax Software
• AMT:Little Tax Of Horrors
• Last Chance to File for Refunds -- for 2003
• Booyah Breakdown: Taxes for Traders II