Tax Relief on Tuition Fees

Hi Guys,

I'm thinking about getting back to collage by part-time or distance education studying an undergraduate course in a different field to that of my current qualification. I will be footing the bill myself, in the region of 3,000 - 3,500 pa. Now, I know that the following is what the revenue website says on the matter:

www.revenue.ie
Tax relief at the standard rate of tax of 20% in 2003 is available for the following:
Tuition fees paid for certain full-time and part-time undergraduate courses of at least 2 years duration. The relief applies to fees up to €3,175

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But, to be honest, I don't quite understand what this equates to in real money terms. I'd greatly appreciate it if anybody could explain it in lay-mans-terms.

Thanks a mill

This means that you will* receive a tax credit up to a maximum of €3,175@20% = €635 per annum. If your fees are say, €3,000, the tax credit will be €3,000@20% = €600 per annum. You should receive a statement of tax credits from the Revenue every January/February. I'm not sure if fees can be claimed in the year they are paid or in arrears.

Oh yeah, I presume that you will have paid tax to use this credit against? I'm not sure what the position is if you are not earning any income, but are receiving tax credits (i.e. do you get a cheque from the Revenue or is the relief carried forward)?

*Presuming the course you take qualifies, I'm not sure that all do. Best to contact the Revenue directly.

You won't be able to claim it on tax credit cert. Send receipt to Revenue at end of tax yr with P60 etc and credit will be given then.

I believe the limit was increased to €5K in last budget so if you course costs €3.5K it will be worth €700 to you.

Highlander

Itis very straigtforward. You can download the form for reclaiming tax from Oasis and send it Revenue. Normally they will amend your tax credits i.e. 20% of €3500 (approx) for the next tax year. However, if you are a bit stretched, you can request an immediate amendment to your tax credits i.e. as it is July, an immediate reimbursement in your tax credits of 7/12 of (20% of €3500), and the balance spread over the remaining months in the year.

They are very efficient, and normally complete the process in a few weeks.

Best of luck

SQ

Hi,

I have completed 2yrs of Tax exams as part of a career change but have footed the bill myself.
Please be aware that it needs to be an approved course to get this relief. If you ring your local revenue office and tell them the course you are doing then they will let you know if it is one of the approved course.

Very ironic that the main tax qualification is not on the approved list

i remember well! it's ridiculous that the ITI are not on. i was given a reason before as to why they weren't on but I can't remember at present.

The reasoning for this according to the Institute is as follows (received this response in Jan 2004):

You won't be able to claim Tax back at the moment on our course as our college
isn't listed as being eligable. We need to apply for that and up until this
year, because of the substantial fee involved, it hasn't been a priority for us
as most of our students are sponsored by companies, who can claim tax back on
the course. The Director of Education is looking into it at the moment and will
be meeting with the Education Committee regarding this matter in the near
future.