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Tax Relief for Tuition Fees

TAX RELIEF FOR TUITION FEES IN RESPECT OF THIRD LEVEL EDUCATION

Under Section 473A TCA 1997 Tax relief at the standard rate (20%) of tax is available in respect of tuition fees paid by an individual in respect of Third Level Education

Tax relief at the standard rate (20%) of tax is available in respect of tuition fees paid by an individual in respect of Third Level Education

The maximum annual tax relief for tuition fees (including the Student Contribution of €2,250 or €1,125) is €7,000 @ 20% per individual per course.

No other fees (e.g. administration fees, examination fees, capitation fees) qualify for tax relief.

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.

The first €1,125 of all fees claimed by an individual does not attract tax relief where all of the students to whom the claim refers are part-time.

The general effect of this approach to granting relief is that all claimants will get full tax relief on the Student Contribution for 2nd and subsequent students in their claim.

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.

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.

How may the relief be claimed?

The relief can be claimed either on the individual’s tax return at the end of the tax year or a claim can be made during a tax year for that tax year once the fees have been paid and the relief can be granted in the determination of tax credits.

Criterion for tax relief

A criterion for eligibility for the tax relief is that, for a year of assessment, an individual pays qualifying fees. Qualifying fees means tuition fees in respect of an approved course at an approved college.

Approved Courses

Category 1 – Approved Undergraduate Courses

To qualify for the tax relief, undergraduate courses must be of at least 2 academic years duration. Such courses include full-time and part-time courses –

  • · in publicly funded third level institutions in the State (including institutions providing     courses to which the Higher Education Grants Scheme applies);
  • ·in private colleges (undergraduate courses in private colleges must Be approved  by H.E.T.A.C.);
  • ·full-time and part-time courses in approved third level institutions in any European Union member State; and
  • ·Full-time and part-time courses operated by colleges in any European Union member State providing distance education in the State.
  • ·be for at least one academic year but no more than 4 academic years in duration;
  • ·Lead to a postgraduate award based on either a thesis or an examination.
  • ·Such courses include:

Category 2 – Approved Postgraduate Courses

To qualify for the tax relief, postgraduate courses must:

  • courses in private and publicly funded colleges in the State;
  • courses in a university or publicly funded colleges in another European Union member State including such colleges that provide distance education in the State; and
  • Courses in a university or publicly funded third level college in countries outside the European Union.

How may the relief be claimed?

The relief can be claimed either on the individual’s tax return at the end of the tax year or a claim can be made during a tax year for that tax year once the fees have been paid and the relief can be granted in the determination of tax credits. The claim form is called IT 31 Tax Relief for Tuition Fees.

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