Claiming tax back on education fees

the_gommes

Hi all, apologies if this question has been answered elsewhere, I couldn’t see a similar thread.

I am undertaking a post graduate course over two academic years from Sep 2016 - Apr 2018. I paid my fees for 2016/17 in 2 installments, the 1st in 2016 & the remainder earlier this year. If I was to pay my second year fees in one go before the end of this year, would I be entitled to claim tax relief on the entire sum of the fees from both years subject to a single disregard fee, or will I have to subtract the disregard fee for each years fees?

Apologies, that reads quite clunkily. Any input appreciated!

Heisenburg81

the_gommes wrote: »

Hi all, apologies if this question has been answered elsewhere, I couldn’t see a similar thread.

I am undertaking a post graduate course over two academic years from Sep 2016 - Apr 2018. I paid my fees for 2016/17 in 2 installments, the 1st in 2016 & the remainder earlier this year. If I was to pay my second year fees in one go before the end of this year, would I be entitled to claim tax relief on the entire sum of the fees from both years subject to a single disregard fee, or will I have to subtract the disregard fee for each years fees?

Apologies, that reads quite clunkily. Any input appreciated!

Per S 473A TCA 97 The academic year dictates which tax year the payment relates to.
Payments for 2016/17 year less the €3,000 disregarded yield a tax credit for 2016 tax year.
The second year fees if paid this year apply to the 2017 tax year and yield a credit against tax of amount paid with again the €3,000 disregarded.
You cant avoid one of the €3,000 disregards.

the_gommes

Heisenburg81 wrote: »

Per S 473A TCA 97 The academic year dictates which tax year the payment relates to.
Payments for 2016/17 year less the €3,000 disregarded yield a tax credit for 2016 tax year.
The second year fees if paid this year apply to the 2017 tax year and yield a credit against tax of amount paid with again the €3,000 disregarded.
You cant avoid one of the €3,000 disregards.

Thanks for the reply Heisenburg.

I should have stated that it’s a part time course, so only subject to a €1500 disregard.
Taking the statement direct from the revenue website: “You can claim relief on your tuition fee instalments either: in the tax year that the academic year commenced; or in the tax year in which you paid the instalment.” Would this imply that I could claim relief on my second 2016/17 instalment + the entire 2017/18 fee together within the 2017 tax year? My first 2016/17 instalment would be below the disregard amount so not due any relief in 2016.

Heisenburg81

the_gommes wrote: »

Thanks for the reply Heisenburg.

I should have stated that it’s a part time course, so only subject to a €1500 disregard.
Taking the statement direct from the revenue website: “You can claim relief on your tuition fee instalments either: in the tax year that the academic year commenced; or in the tax year in which you paid the instalment.” Would this imply that I could claim relief on my second 2016/17 instalment + the entire 2017/18 fee together within the 2017 tax year? My first 2016/17 instalment would be below the disregard amount so not due any relief in 2016.

Yes if you paid for both years in current tax year you can claim both in that tax year.
I would imagine you need to aggregate the fee for 16/17 paid last year with portion paid this year for 16/17 and deduct aggregate in calculating credit for 16/17 academic year.
Disregards apply to academic years not tax years.

the_gommes

Heisenburg81 wrote: »

Yes if you paid for both years in current tax year you can claim both in that tax year.
I would imagine you need to aggregate the fee for 16/17 paid last year with portion paid this year for 16/17 and deduct aggregate in calculating credit for 16/17 academic year.
Disregards apply to academic years not tax years.

That’s what I was afraid of, just couldn’t see it stated explicitly on the revenue site.

Thanks a million for the clarification!