J.W.
Um, the $5,000 comes off your taxable wages you don't actually get $5,000. You actually get whatever your marginal tax rate is of $5,000 so if you are taxed at 10% you get 500. Just an FYI. :)
I just told you how they work. I just graduated in 2010 with a masters in accounting. I think I should know. It is a for AGI deduction, in other words it comes off your taxable income before AGI is calculated where a deduction like your lifetime earning credit is from AGI or comes off after calculating AGI. It is a great deduction but not what you think it is.
I can assure you I was brutalized with tax to the point I will never practice tax. There is not one law in the tax code that deducts from your tax liability after it is calculated, not one! There are things like the earned income tax credits that are like extra withholding but those have income requirements that I very much doubt you qualify for.