Tax Credits for Tuition Fees

SwordofLight

Hi All, I couldn't get Revenue on the phone so thought I'd try here..

I'm doing Income Tax return and a bit confused about Uni fees.

I paid my fees in lump sums at different timepoints over the duration of my course. The course fee is 11k per year, but 50 percent is paid by my sponsor.

So I paid €800 in 2018; €0 in 2019; €10339 in 2020; €3000 in 2021. I still owe the balance. None of it has ever been declared for tax credit before.

As I am doing the 2021 Income Tax Return, I would like to recoup any expenses I can. I'm a bit confused by the 'Disregard Fee' mentioned on the Revenue site.

Any pointers appreciated!

Geuze

Have you read this?

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

SwordofLight

Yep.

I suppose the question here is - can we claim credit on previous academic years to the income tax statement year being completed.

SureYWouldntYa

The disregard amount of €3k just means that no amount below €3k is available for relief.

Per your figures, the only year you could make a claim for tuition fees is 2020. The amount available for relief is €7,339 (after the €3k disregard is taken into account), and there is 20% relief available on that, so a credit of €1,468 will apply

You can amend tax returns for up to 4 years, so you're able to amend 2018-2021 at any time

SwordofLight

Thanks a million, really helpful reply! Now I understand it but quick question - when I enter the amount into the Tax Return for 2020, if I select 'No' for PT course, and Training course, it gives me €4000 tax credits on that sum, but if I select Yes for Training course it gives me €1270.

The course is a university programme, studying research... ? Not sure if it is classed as 'training' which usually means hands-on kind of stuff? My course does qualify in the list of programmes eligible. What to do!?

SureYWouldntYa

Part time courses only have a disregard amount of €1,500, but I'm not sure how that ties in with you getting the figures you are getting.

Hope somebody else can be of assistance with this

relax carry on

From the revenue website.

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.

The €1270 amount for training courses is not tuiton fees. It's for foreign language and certain IT courses.

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/foreign-language-and-it-courses/index.aspx

SwordofLight

I think if selecting No to Training course brings up a figure which is out of the ordinary compared to the examples they've provided on the revenue website, then it probably isn't the right one to select.

The examples would suggest (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) that there is a cap of €7k, which means if I've paid 12k for a course, after the disregard fee of 3k, I can enter 9k but only be eligible for 7k at 20%. It's a bit confusing.

Relax Carry On - €1270 is the calculation for credits it gives me, but if I select No for 'Is this a training course?', then that credits figure goes up to 4k. No idea what is happening.

relax carry on

https://www.boards.ie/discussion/comment/119495542#Comment_119495542

From the Revenue website;

"The maximum amount you can claim is €7,000 per course, per person, per academic year".

If your course isn't a training course per the link I posted earlier then select no, otherwise your relief is restricted to that for a training course.

SwordofLight

Ok, all done, I figured it out where I was confused, it was defaulting to €4k as the gross sum.