My First Form 12A -Questions About Tuition Deduction?

Robdude

I'm married; my wife and I are both students. I still have a full-time job, and she does not. I was hoping someone might be able to help me understand the tuition tax credit.

I'm enrolled in an accredited Master's program at a University in the United States (Colorado State University). I pay my tuition in USD, and it's something like 8,000 euro per year (at today's exchange rate)

First - will this tuition be eligible for the deduction?

Second - my wife is a student at UCD's veterinary medicine program. Her tuition is something like 33,000 euro each year. If she is receiving student loans (NOT grants or scholarships) does the tuition credit still apply?

Finally - Am I understanding this right when it says there is a 7000 maximum credit in 2012? Does that mean when I take my income and times it by 20/41% and come up with the tax I owe - I could subtract 7000 from it (or pretty close to it, depending on if my tuition counts)?

I'm pretty sure that can't be right - but I wanted to ask.

I'm afraid I have no prior experience with this stuff and I really don't know what to expect.

relax carry on

Robdude wrote: »

I'm married; my wife and I are both students. I still have a full-time job, and she does not. I was hoping someone might be able to help me understand the tuition tax credit.

I'm enrolled in an accredited Master's program at a University in the United States (Colorado State University). I pay my tuition in USD, and it's something like 8,000 euro per year (at today's exchange rate)

First - will this tuition be eligible for the deduction?

Second - my wife is a student at UCD's veterinary medicine program. Her tuition is something like 33,000 euro each year. If she is receiving student loans (NOT grants or scholarships) does the tuition credit still apply?

Finally - Am I understanding this right when it says there is a 7000 maximum credit in 2012? Does that mean when I take my income and times it by 20/41% and come up with the tax I owe - I could subtract 7000 from it (or pretty close to it, depending on if my tuition counts)?

I'm pretty sure that can't be right - but I wanted to ask.

I'm afraid I have no prior experience with this stuff and I really don't know what to expect.

First of all the relief is granted at the standard rate of tax. For tax years prior to 2011 its 20% of 5000 euro per student. For 2011 onwards its 20% of 7000 per student with the first 2000 of each claim disallowed for full time students and 1000 for part time students.

Regarding if your courses are allowed, the UCD one is probably on the list of approved courses on the below link. The one in the US needs to qualify under the conditions for approved colleges and approved courses again in the below link. If in doubt contact Revenue and get your answer in writing.

The relief is given to person who pays the fees regardless of loans etc. In order for you to benefit from your wifes fees, you need to be listed as Joint Assessed for taxation purposes with Revenue.

You apply for the tax credits by completing a form IT31 for each course and sending a copy of the receipts showing fees paid.

You do not need to file a form 12 unless Revenue have asked you to do one or you are declaring additional income like rental etc.

http://www.revenue.ie/en/tax/it/leaflets/it31.html