Graduate Students can claim tax credit or, in some cases, deductions, for expenses that are paid for postsecondary education for yourself, spouse, or your dependant children.
The Lifetime Learning credit is available on a tax-return basis and covers a broader timeframe and range of educational courses. Education expenses paid for with tax-free grants, scholarships and employer-provided tuition assistance are not eligible for the credits or for the above-the-line deduction. However, education expenses paid for with loans are eligible for these tax benefits.
You may exclude up to $5,250 from your annual income when your employer helps you pay for higher education costs. For coursework beginning January 1, 2002, this benefit will cover employer-provided tuition assistance for both undergraduate and graduate level courses.
To learn more about these benefits and deductions please go to the National Association of College and University Business Officers at www.nacubo.org, or at www.irs.gov or by calling 
1-800-TAX-FORM.
Who is Eligible?
Lifetime Learning Credit: Undergraduates, Graduates and those taking individual job-related courses
Above-the-Line Deductions: Undergraduate, Graduates, and those taking courses
Student Loan Interest Deductions: Undergraduates and Graduates
Withdrawals from Section 529 Plans: Undergraduates and Graduates
Employer-Provider Tuition exclusions: Undergraduates and Graduates