Over 18s in receipt of allowances from parents while in education?

lucernarian

Hi there,

It's just occurred to me that I have never considered any monthly allowance I get from my parents as "taxable income" while looking to get my P60s over the years. During my time in college anyway. What's the taxation position with money received from parents on top of any small part-time job income over a given year? (E.g. would it have to be declared on Form 12A and so on) I've payed rent mainly with this allowance but also with my own money though I've never looked for a rent payment credit on their behalf. I never thought I or they were separately entitled to such a credit but I've recently realised I may be wrong. Separate issue I suppose.

Not sure I worded that very well, any comments or extra questions are welcome!:)

Thanks

mari2222

the money from your parents sounds like a GIFT of money rather than your earned income, and if below 3000 euro per annum there is no tax on it.

lucernarian

It was money for day to day living and accommodation etc. while I was in college. And it would have been over €3000 annually. Does it make any difference as far as tax goes that I'm in full time education and was receiving it specifically because of college and the cost of going to it?

I know this is a widespread thing, anyone I know who doesn't get a grant generally can't earn enough money to pay for college and food etc so the parents help out. I've never come across anything on the revenue website which addresses this general issue.

jarvis_c82

It's not counted as a gift or taxable income. It is counted as the provision of help and support for a child in their educational needs, which is not taxable.

lucernarian

Even if the child is now over 18? Is there an age limit for that provision or is it not taxable so long as you're regarded as a "dependent"? E.g. you started the degree before the age of 23.

george507

Gift regarding support in Education is exempted for CAT