Is Tax Relief Available on Third Level Education Tuition Fees?

My eldest son has recently completed his CAO application and will be in college from next September. It is my understanding that tax relief may be available in respect of any third level tuition fees I incur as a result of this. Can you please advise me in this regard?

Firstly, I would like to wish your son the best of luck in his leaving cert this summer and every success in whatever career path he may choose. You are correct in relation to the potential availability of tax relief for third level tuition fees. You will be entitled to claim tax relief on fees paid for third level courses undertaken by your son, provided these fees are paid in relation to an approved course. For the purposes of your son’s education, an approved undergraduate course must be carried out in an approved college and be of at least two academic years in duration.

Approved Colleges for the purpose of this relief include Universities, Public and Private Colleges and Institutes of Higher Education in the State that provide courses that are approved for higher education grants. The relief also applies to fees paid to equivalent bodies in other EU member states.

Tax relief is available at the standard rate of tax (20%), in the tax year 2012, in respect of qualifying tuition fees. Currently, the maximum limit on such qualifying fees for the academic year 2011/2012 is €7,000.

For the college year 2011/2012, the first €2,000 of each claim is disregarded for relief, where the student, in respect of whom the relief is claimed, is a full-time student. In the case of a claim where the student concerned is studying part-time, the first €1,000 of the claim will be disregarded. Since 2011, the tax relief is allowable in respect of the Student Contribution.

The relief is available per course, per student, per academic year. Therefore should you have more than one child in college and pay fees for both children, you will be entitled to claim relief in respect of the fees paid provided all other conditions are met. However, relief will only be granted in respect of amounts actually paid and subject to the maximum relief available in that academic year.

Importantly, 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. Nor is relief available for administration, registration or examination fees.

Finally, the relief can be claimed either on your tax return at the end of the tax year or a claim can be made during a tax year once the fees have been paid. This can be done by completing the necessary application form.

If you have any further queries in relation to the tax relief available with regards to third level education tuition fees, please do not hesitate to contact RDA Accountants’ Tax Manager George Skelton CTA, ACA, at our Wexford office for further assistance.