As a parent, you have a lot of knowledge and experience that your kids in college still lack. And when it comes to taxes you are light years ahead of them. Even if you’re not a tax expert of some sort, chances are good that you know the basics, such as when taxes must be filed in order to avoid penalty, how to file an extension (or just that you CAN file an extension), and how to ensure that you get the most money back by maximizing deductions. However, the college students in your family likely have no way of knowing even these simple facts related to their annual income tax filings. So it may fall to you to do your research when it comes to tax breaks for college students so that you can inform them and ensure that they’re getting all the breaks they’re due.

So what are some of the best tax breaks for students? The vast majority won’t be able to take advantage of mortgage interest payments on their side, and many won’t enjoy the advantages that fall under the “married filing jointly” banner. And while some students work freelance during their time on campus to make ends meet, thus earning them the right to deduct business expenses, this situation might not apply to most students. However, there are a few write-offs related to education that could greatly benefit the college students in your family; but they may need to take advantage of some of them quickly in order to ensure that they aren’t over-taxed.

The Lifetime Learning Credit is a good place to begin because it allows students (and/or parents) to claim as much as $2,000 in expenses related to education (on the stipulation that eligible students earn less than $60,000 annually for singles or less than $120,000 for married couples). However, there are a couple of options that may serve them better. For example, the American Opportunity Credit allows students earning a single income of $80,000 or less per year (or $120,000 for married) to claim up to $2,500 a year for the first four years of an undergrad degree, with a maximum refund of $1,000. Qualifying expenses could include tuition, fees, books, and more. Students may also be eligible for tuition and fees deductions of up to $4,000 per year, although this particular credit is slated to expire at the end of 2013, so students should make sure to use it this year if possible.

Finally, students that begin paying off their loans can deduct any interest payments made throughout the course of the tax year. Since most students don’t start paying this bill until they graduate, it may not apply. But for those students willing to put a windfall towards their student loan debt, up to $2,500 in interest payments may be deducted. Students that take a gap year and work abroad may be able to claim a tax rebate when leaving the country. But if they travel abroad through a school-run program they will likely continue to pay tuition to their institution of higher learning stateside, making them eligible for the tax breaks that will give them the best chance to come out ahead financially.