Your money - 11 April 2012 |
Q. I am about to complete my 2011 tax return and I have a query relating to relief in respect of college fees paid for my two children. I am aware that previously I could not claim the registration fee; however I understand this has changed. Can you clarify?
A. Tax relief at the standard rate of tax (20%) in the tax years 2011 and 2012 is available for certain tuition fees. The maximum limit on such qualifying fees for the academic year 2011/2012 is €7,000.
2011/2012 only:
- The first €2,000 of each claim is disregarded for relief, where any one of the students when the relief is claimed is a full time student. In the case of a claim for relief where the student concerned is studying part time, the first €1,000 of the claim for relief is disregarded.
Relief is not available in respect of:
- Any part of the tuition fees that are or will be met directly or indirectly by grants, scholarships, by an employer or otherwise.
- Administration, registration or examination fees.
For the year 2011 and subsequent years the student contribution (replacing the registration fee) is eligible for relief subject to the disallowance detailed above.
For the tax year 2010 and prior years the tax relief is confined to tuition fees only and does not extend to items such as registration fees or administration fees.
For the tax years 2011 and subsequent tax years, the tax relief is allowable in respect of tuition fees including the Student Contribution.
The following examples outline how the relief works:
Parent with just one child in third level education
| Student - Full time in public college | |||
| 2010 | Amount | 2011 | Amount |
|
Student Registration Fees
|
€1,500 | Student Contributions | €2,000 |
| Tax relief | Nil | Tax Relief | Nil |
| Student - Part time in public college | |||
| 2010 | Amount | 2011 | Amount |
|
Student Fees
|
€5,000 | Student Fees | €5,000 |
| Tax relief |
€1,000 (€5,000 @ 20%) |
Tax Relief |
€800 (€5,000 - €1,000) @ 20%) |
| Student - Full time in private college | |||
| 2010 | Amount | 2011 | Amount |
|
Student Fees
|
€5,000 | Student Fees | €5,000 |
| Tax relief |
€1,000 (€5,000 @ 20%) |
Tax Relief |
€600 (€5,000 - €2,000) @ 20%) |
| Student - Part time in private college | |||
| 2010 | Amount | 2011 | Amount |
|
Student Fees
|
€5,000 | Student Fees | €5,000 |
| Tax relief |
€1,000 (€5,000 @ 20%) |
Tax Relief |
€800 (€5,000 - €1,000) @ 20%) |
Parent with two children in third level education
| Student - Full time in public college | |||
| 2010 | Amount | 2011 | Amount |
|
Student Registration Fees
|
€3,000 | Student Contribution | €4,000 |
| Tax relief | Nil | Tax Relief |
€400 (€4,000 - €2,000) @ 20%) |
The relief is allowable per course per student per academic year. If you have paid college fees in respect of more than one individual attending college in an academic year, relief is due to you in respect of the fees paid for each person up to the maximum limit per course.
Where fees are paid in instalments and any such amounts are paid in a tax year following the year in which the academic year of the approved course commenced, then the relief for fees relating to that academic year may be granted either:
in the tax year during which the academic year of the approved course commenced;
or
the tax year in which the instalment was paid.
However, relief will only be grated in respect of amounts actually paid and subject to the maximum relief available in that academic year.
The relief can be claimed either on an individual’s tax return at the end of the tax year or a claim can be made during the year for that year once the fees have been paid and the relief can be granted in the tax credit certificate.
For further information, including details of approved colleges and courses go to www.revenue.ie.
If you have any queries on money or taxation matters which you would like answered, please send them to "Your Money", c/o Examiner Publications (Cork) Ltd., City Quarters, Lapps Quay, Cork
