With the new school year under way, the Internal Revenue Service is reminding teachers, parents and students that saving receipts and keeping good records can help you take advantage of various education-related deductions and credits on your 2007 federal income tax return. Here are three key tax breaks:

• Tuition and fees deduction
• Hope credit
• Lifetime learning credit

These tax credits can help parents and students pay for the cost of post-secondary education. All three are available, regardless of whether an eligible taxpayer itemizes their deductions. Under current law, the tuition and fees deduction is scheduled to expire at the end of this year, but the two credits remain in effect.

Normally, a taxpayer can claim tuition and required enrollment fees paid for their own and their dependent’s college education. A taxpayer cannot take both an education credit and the tuition and fees deduction for the same student in the same year. Income limits and other special rules apply to each of these provisions. Education credits are claimed on Form 8863, and the tuition and fees deduction for 2007 will be claimed on new Form 8917.