Relief for college fees

scheister

Just a quick question about section 474 TCA 1997

How is this given. If it the fee by the tax rate or is the full cost allowed

ie Cost of course 7250

do you get 7250 off your tax paid
or
7250 *20%= 1450 off your tax paid

thanks

Daxve

This also depends on number of factors. What the course is, is it full time or part time? what year are we talking about?

For the academic year 2010/2011 (and previous years) the maximum relief is €5000 allowed at the standard rate therefore you get 20% of what you paid up to a maximum of €1000 (€5000 @20%)

If you paid €7250 you get €5000 @ 20% = €1000 there is no relief on the balance of €2250
If you paid €4000 for example you would get €4000 @20% = €800

For the 2011/2012 academic year the rules have changed. The first €2000 of the claim is disregarded the next €5000 is allowable at the standard rate.

Therefore the relief due on €7250 is
first €2000 = 0
Next €5000 @20% = €1000
Balance €250 no relief due

For the €4000 example its
first €2000 = 0
next €2000 @20% = €400

For the 2012/2013 academic year the first €2250 is disregarded and relief is allowed on the next €4750 @20% balance is disregraded.

Remember the relief is for tuition fees only not admin, exam or registration fees. Also you can only ever get a refund of tax actually paid if you didn't pay tax or only paid a small amount of tax you will get back what you paid the rest of the relief will be lost.

Eg tax actually paid for year €600, additional relief due for tuition fees €1000 maximum refund due €600 (tax actually paid) the additional €400 is disregarded.

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

scheister

Daxve wrote: »

This also depends on number of factors. What the course is, is it full time or part time? what year are we talking about?

For the academic year 2010/2011 (and previous years) the maximum relief is €5000 allowed at the standard rate therefore you get 20% of what you paid up to a maximum of €1000 (€5000 @20%)

If you paid €7250 you get €5000 @ 20% = €1000 there is no relief on the balance of €2250
If you paid €4000 for example you would get €4000 @20% = €800

For the 2011/2012 academic year the rules have changed. The first €2000 of the claim is disregarded the next €5000 is allowable at the standard rate.

Therefore the relief due on €7250 is
first €2000 = 0
Next €5000 @20% = €1000
Balance €250 no relief due

For the €4000 example its
first €2000 = 0
next €2000 @20% = €400

For the 2012/2013 academic year the first €2250 is disregarded and relief is allowed on the next €4750 @20% balance is disregraded.

Remember the relief is for tuition fees only not admin, exam or registration fees. Also you can only ever get a refund of tax actually paid if you didn't pay tax or only paid a small amount of tax you will get back what you paid the rest of the relief will be lost.

Eg tax actually paid for year €600, additional relief due for tuition fees €1000 maximum refund due €600 (tax actually paid) the additional €400 is disregarded.

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

thanks Daxve that answers my question

runjb

I've applied for tax relief on college fees for a PART TIME course for the 2011/2012 academic year.

THe fees were 5500, in two instalements, one in Spet 2011 and one in Feb 2012.

According to revenue:

"Who can claim the relief?
An individual can claim tax relief on fees paid on behalf of him/herself and/or on behalf of any other individual for Third Level courses provided he/she has paid the qualifying fees.
The claim may be in respect of a number of students – the maximum amount allowable (i.e. €7,000 @ 20% for 2012 and 2011 and €5,000 @ 20% for 2010) applies
per course / per student rather than per claim.
For the tax year 2012:
 the first €2,250 of all fees claimed by an individual does not attract tax relief where any one of the students to whom the claim refers is a full time student;
and
 the first €1,125 of all fees claimed by an individual does not attract tax
relief where all the students in respect of whom the claim refers are part-time students

For the tax year 2011:
 the first €2,000 of all fees claimed by an individual does not attract tax relief where any one of the students to whom the claim refers is a full time student;
and
 the first €1,000 of all fees claimed by an individual does not attract tax
relief where all the students in respect of whom the claim refers are part-time students."

and

"Payment of tuition fees in instalments
Where fees are paid in instalments and any such amounts are paid in a tax year
following the year in which the academic year of the approved course commenced,
then the relief for fees relating to that academic year may be granted either -

(a) in the tax year during which the academic year of the approved course
commenced;
or
(b) the tax year in which the instalment was paid.

However, relief will only be granted in respect of amounts actually paid and subject to the maximum relief of €7,000 / €5,000 (whichever is applicable) @ 20% per academic year."


Does anyone know the criteria for the payment of either option listed above. Needless to say they took my payments over the course of two years for tax purposes which meant that 2000 of my college fees were disregarded for tax relief instead of 1000. Is it worth pursuing?