Basic Eligibility

• For the tax credits and deductions that are available for educational expenses, there are basic eligibility requirements you must meet for your child's senior dues to be eligible. Your child must be your dependent, whom you claim as an exemption on your tax return; the fees must be required; depending on the credit or deduction you choose, the fees and expenses may have to be paid directly to the institution to qualify for the write off; and you must meet the income eligibility requirements.
  
  

Dependent

• To qualify as your dependent, the student must be your child, foster child, step-child or adopted child, and he must be under age 19 or under age 24 and attending school full-time. The dependent must also have lived with you more than half the year, which excludes the time he was away at school, you must have provided more than half of his support and he cannot be eligible to be claimed on anyone else's taxes. Under certain circumstances, some relatives can also qualify as dependents.
  
  

Tax Credits

• The American Opportunity Credit and the Lifetime Learning Credit can reduce your tax liability for qualified educational expenses. The American Opportunity Credit allows you to write off expenses paid to an eligible educational institution for the first four years of your child's education. Fees paid as a requirement for enrollment qualify if your dependent is seeking a degree, an academic certificate or a recognized credential. The Lifetime Learning Credit is available if your child is enrolled in at least one class and the senior fee is required for enrollment and is paid directly to the educational institution.
  
  

Deductions

• As of 2011, two tax deductions are available but only one can cover the senior dues. When you use the Tuition and Fees Deduction you can deduct the senior dues, but only if they are paid directly to the educational institution and they are a requirement for enrollment. The tax deduction reduces your income which may reduce your tax liability. If you take this deduction, you cannot take the tax credits.