For many parents it is has become very difficult to save for or pay for your child's college education. Recognizing this, the federal government has stepped up its efforts to provide education tax benefits and incentives. While that is a good thing, understanding the myriad of education tax benefits and incentives out there can be frustrating and confusing to the average person. Lately, it seems every time you turn around there is some additional tax legislation in the area of education. Let's review the various tax benefits and incentives available. Hope Credit (American Opportunity Tax Credit) Provides a tax credit for calendar years 2009 and 2010 of up to $2,500 for undergraduates in school more than half time. It can be claimed for all four years of undergraduate study. The first $2,000 of tuition costs and related fees (not room and board, however) are entitled to a 100% credit, while the next $2,000 of tuition costs (not room and board, however) are entitled to a 25% ...