Tax relief on third level fees

tina1040

My son attended college in 2018/19 and I paid the €3000 charge. He changed to a different course for 2019/20 so I wasn't entitled to the government portion and I had to pay around €5800. Can I claim tax relief on the fees which I paid in full in September 2019?

Calahonda52

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/how-do-you-calculate-the-relief.aspx

I think you need to deduct the 3000 disregard from the 5800

okidoki987

Calahonda52 wrote: »

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/how-do-you-calculate-the-relief.aspx

I think you need to deduct the 3000 disregard from the 5800

Bang on if full time course, if part time, it's €1,500.
1st €3,000 is disregarded so relief is 20% on €2,800, €560 worth.
Can't claim for administration fees, student levy, sports centre charge or USI Levy.

tina1040

That's great. A little compensation for the stress!!!!!!!!!!

msmx5

Hi,

Query re paying fees in installments that isn't really answered on the revenue site. Is the following possible.

2020 - 3rd level Fees 1st Year = €3000
September 2020 - Pay 1st installment of €1500
Jan 2021 - Pay 2nd Installment of €1500


2021 - 3rd level Fees 2nd year = ~ €3000
September 2021 - Pay in a single installment €3000


2020 Tax year: Total paid €1500 is less than the disregard amount therefore no relief
2021 Tax Year: Total paid €4500 less disregard €3000 = €1500 x 20% = €300 Relief?

Is the above possible? If so there is a clear benefit to paying the first year fees in two installments and 2nd year in a single installment.

Appreciate any thoughts.

Calahonda52

I would say no as the key words are academic year and course

Nice piece of mental gymnastics


https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/paying-tuition-fees-in-instalments.aspx

Paying tuition fees in instalments
You may pay tuition fees in instalments. For example, you may pay fees for one course over two tax years.

You can claim relief on your tuition fee instalments:

in the tax year that the academic year commenced
or
in the tax year in which you paid the instalment.

msmx5

Calahonda52 wrote: »

I would say no as the key words are academic year and course

Nice piece of mental gymnastics


https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/paying-tuition-fees-in-instalments.aspx

Paying tuition fees in instalments
You may pay tuition fees in instalments. For example, you may pay fees for one course over two tax years.

You can claim relief on your tuition fee instalments:

in the tax year that the academic year commenced
or
in the tax year in which you paid the instalment.

Thanks - It's the "OR" that made me think the approach was possible. ie make no claim in regard of the 1st instalment in tax year 2020 (as its below the disregard amount) but for the following TAX Year the *total* fees paid are above the threshold and the revenue advice does specify to apply the disregard amount once per tax year.

Calahonda52

msmx5 wrote: »

Thanks - It's the "OR" that made me think the approach was possible. ie make no claim in regard of the 1st instalment in tax year 2020 (as its below the disregard amount) but for the following TAX Year the *total* fees paid are above the threshold and the revenue advice does specify to apply the disregard amount once per tax year.

Yes but that is per course, which I read as an academic year, what ever that is now, and not per degree.

Maybe not

msmx5

Calahonda52 wrote: »

Yes but that is per course, which I read as an academic year, what ever that is now, and not per degree.

Maybe not

I'll try to find out definitively and will post back if I do.

Another similar case would be if you have 2 children in college... say older child in final year commencing Sept 2020 and younger child commencing 1st year in Sept 2021. If the final year fees are paid in instalments 2nd half being paid in Tax year 2021 then the combined fees paid for both courses might be higher than the disregard amount. This case although similar doesn't apply to me - the fact its two separate courses might be more "acceptable".

niallb

I have 17 year old twins, so I'll be keeping an eye on this...

msmx5

Got a response from Revenue and from a tax relief point of view it is not possible to combine the 2nd instalment from 1st year fees with all of 2nd year fees when both payments are paid in the one tax year as outlined in my post above. (objective being an attempt to get above €3000 disregard limit)

"....you would not be entitled to any Tuition Fee Relief in 2021 as the extra €1,500 would be part of the previous year's fee.

The option of claiming the instalment relief in the tax year it was paid rather than the academic year would mean if you completed a one year course over two years and paid over €3,000 in one of the years you could claim the relief in either year."