Tax Relief For Third-Level Fees
Are you aware that you can claim tax relief on third-level fees for yourself or those on whose behalf you pay fees?
You may be able to claim tax relief on tuition fees paid for approved:
Undergraduate courses
Postgraduate courses
Information technology (IT)
Foreign language courses
You can claim tax relief as long as you have actually paid the fees, either on your own behalf or on behalf of another person. You cannot claim tax relief on:
Examination or administration fees
Any part of the tuition fees that is met directly or indirectly by a grant, a scholarship or otherwise, e.g. where fees are reimbursed by an employer.
Payments that qualify for tax relief
The maximum amount of fees (including the Student Contribution) that can qualify for tax relief is €7,000 per person per course.
Full-time student: There is no tax relief on the first €3,000 spent on tuition fees (including the Student Contribution) for the 2017/2018 academic year.
Part-time student: There is no tax relief on the first €1,500 spent on tuition fees (including the Student Contribution) for the 2017/2018 academic year.
More than one student: If you are claiming for more than one student, you will get full tax relief on tuition fees (including the Student Contribution) for the second or subsequent students.
Courses that qualify for tax relief
Undergraduate courses
Tax relief is available for tuition fees paid for:
Approved full-time and part-time undergraduate courses in both private and publicly funded third-level colleges in the State
Approved full-time and part-time undergraduate courses in both private and publicly funded third-level colleges in any EU member state. This includes courses in medicine, veterinary medicine, dentistry and teacher training.
Full-time and part-time undergraduate courses operated by colleges in any EU member state providing distance education in the State.
Conditions for granting tax relief for undergraduate courses
Courses must be for at least two years’ duration
Colleges and courses within the State must be approved by the Department of Education and Skills
Postgraduate courses
Tax relief is available for tuition fees paid for:
Approved postgraduate courses in private and publicly funded colleges in the State
Postgraduate courses in a university or publicly funded college in another EU member state, including such colleges that provide distance education in the State
Postgraduate courses in a university or publicly funded third-level college in non-EU countries.
Conditions for granting tax relief for postgraduate courses
Courses must be for at least one academic year but not more than four academic years in duration and must lead to a postgraduate award based on either a thesis or an examination.
The person taking the course must already have a primary degree or an equivalent qualification.
Information technology and foreign language courses
Tax relief is available in respect of fees paid for training courses in information technology and foreign languages (other than postgraduate courses) if certain conditions are met:
The course involved must be less than two years’ duration
It must result in the awarding of a certificate of competence (and not just a certificate of attendance)
The course must be approved by SOLAS.
Details of schemes
Revenue publishes detailed information about tax relief for tuition fees, covering tax relief for undergraduate and postgraduate courses and tax relief for information technology and foreign language courses.
Rates of tax relief
Tax relief is given at the standard rate of 20%. There is no limit on the number of individuals for whom you can claim.
Paying fees in instalments
If you pay fees in instalments and at least one instalment is paid in the tax year following the year your course started, then the relief for fees relating to that academic year may be granted either:
in the tax year the course started, or
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 available in that academic year.
Undergraduate and postgraduate courses:
The maximum amount of fees (including the Student Contribution) that can qualify for tax relief is €7,000 per person per course.
Information technology and foreign language courses:
The course fees paid must not be less than €315 and not more than €1,270 (these refer to the course fee and are not simply an amount per annum).
Source: Citizensinformation.ie