Tax Relief for Tuition Fees paid in respect of Third Level Education

Transcription

1 IT 31 for Tuition Fees paid in respect of Third Level Education Ver RPC007177_EN_WB_L_1

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3 Introduction This leaflet outlines the tax relief available for Third Level Education tuition paid by an individual to an approved college in respect of an approved course. Details of tax relief available for paid by an individual for certain training courses in Foreign Languages and Information Technology are available in Leaflet IT31(A). Who can claim? An individual can claim tax relief on paid for Third Level courses in respect of any person as long as he or she has paid the qualifying. Qualifying means tuition (including the, post 2011), but not examination, registration or administration, in respect of an approved course at an approved college. Amount of Relief Tax relief is available at the standard rate of income tax (20%) for qualifying tuition. The maximum limit on such qualifying for the academic year 2015/2016 is 7,000 per individual per course. The amount of relief available for the current year is provided in Leaflet IT1 - Tax Credits, Reliefs and Rates, which is available on or from Revenue s Forms and Leaflets service LoCall Maximum limit for academic year, per course,. Maximum Limit (cap) , , , ,000 3

4 Relief is not available in respect of: any part of the tuition that are or will be met directly or indirectly by grants, scholarships, an employer or otherwise administration, registration or examination. For the tax year 2012 and subsequent tax years, the tax relief is allowable in respect of tuition including the. Tax relief is allowable per course,, per academic year. If you have paid tuition in respect of more than one individual attending college in an academic year, tax relief is due to you in respect of the paid for each person up to the maximum limit per course. The amounts of qualifying tuition shown in the table below are disregarded in respect of each claim. Full time (Where any one of the students in respect of whom relief is claimed is a full-time student.) Part time (Where all the students in respect of whom relief is claimed are part-time students.) ,250 1, ,500 1, ,750 1, ,000 1, ,000 1,500 The above amounts are in respect of a claim, the subject of which may be one or more students. Therefore if you are claiming for more than one student you will get full relief, subject to the maximum limit, for the 2nd and subsequent student claimed. 4

5 The following examples outline how the relief works: Claim in respect of one student in third level education Public Colleges (examples 1 and 2) Example 1 One full-time student in a public college 2012 Not applicable 2,250 Nil ( 2,250 less disregard of 2,250) 2013 Not applicable 2,500 Nil ( 2,500 less disregard of 2,500) 2014 Not applicable 2,750 Nil ( 2,750 less disregard of 2,750) 2015 Not applicable 3,000 Nil ( 3,000 less disregard of 3,000) Example 2 One part-time student in a public college Total ,000 2,250 7,250 1,175 1,125 = 20%) ,000 2,500 7,500 1,150 1,250 = 20%) ,000 2,750 7,750 1,125 1,375 = 20%) ,000 3,000 8,000 1,100 1,500 = 20%) 5

6 Private Colleges (examples 3 and 4) Example 3 One full-time student in a private college Total ,000 2,250 10, ,250 = 20%) ,000 2,500 10, ,500 = 20%) ,000 2,750 10, ,750 = 20%) ,000 3,000 11, ,000 = 20%) Example 4 One part-time student in a private college Total ,000 2,250 7,250 1,175 1,125 = 20%) ,000 2,500 7,500 1,150 1,250 = 20%) ,000 2,750 7,750 1,125 1,375 = 20%) ,000 3,000 8,000 1,100 1,500 = 20%) 6

7 Claim in respect of three students in third level education Public Colleges (examples 5 and 6) Example 5 Three students, all full-time in public colleges Total 2012 Not applicable 2013 Not applicable 2014 Not applicable 2015 Not applicable 2,250 2,500 2,750 3,000 6, ( 6,750 less disregard of 2,250 = 20%) 7,500 1,000 ( 7,500 less disregard of 2,500 = 20%) 8,250 1,100 ( 8,250 less disregard of 2,750 = 20%) 9,000 1,200 ( 9,000 less disregard of 3,000 = 20%) Example 6 Three students, all part-time in public colleges Total , , , ,000 2,250 2,500 2,750 3,000 21,750 3,975 1,125 = 20%) 22,500 3,950 1,250 = 20%) 23,250 3,925 1,375 = 20%) 24,000 3,900 1,500 = 20%) 7

8 Private Colleges (examples 7 and 8) Example 7 Three students, all full-time in private colleges Total , , , ,000 2,250 2,500 2,750 3,000 30,750 3,750 2,250 = 20%) 31,500 3,700 2,500 = 20%) 32,250 3,650 2,750 = 20%) 33,000 3,600 3,000 = 20%) Example 8 Three students, all part-time in private colleges Total , , , ,000 2,250 2,500 2,750 3,000 21,750 3,975 1,125 = 20%) 22,500 3,950 1,250 = 20%) 23,250 3,925 1,375 = 20%) 24,000 3,900 1,500 = 20%) 8

9 Claim in respect of two students, one in a public college and the other in a private college Example 9 in private college Two students, one in a public college and one in a private college in public college Total , , , ,000 2,250 2,500 2,750 3,000 10,250 1,400 (Max. 7, ,250 less disregard of 2,250 = 20%) 11,000 1,400 (Max. 7, ,500 less disregard of 2,500 = 20%) 11,500 1,400 (Max. 7, ,750 less disregard of 2,750 = 20%) 12,000 1,400 (Max. 7, ,000 less disregard of 3,000 = 20%) Payment of Tuition Fees in instalments Where 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, the relief for relating to that academic year may be granted either: in the tax year during which the academic year of the approved course commenced, or in the tax year in which the instalment was paid. However, relief will only be granted in respect of amounts actually paid, subject to the maximum relief available in that academic year. 9

10 How is the relief claimed? The relief can be claimed during the tax year once the have been paid. A revised Tax Credit Certificate showing the relief due will then be issued to you. Alternatively a claim can be made at the end of the tax year by submitting your Form P60. Your income tax liability for the year will be reviewed and Revenue will make any refund that may be due to you. If you are self-employed this tax credit is claimed by completing the Tuition Fees section on your annual tax return. To claim the relief, complete the application form attached to this leaflet and forward it to your Revenue office, the address of which can be found on any correspondence you have received from Revenue. Alternatively, use our Contact Locator on to obtain the correct address. A separate claim form must be completed where you are claiming relief in respect of more than one student. Details of any payment(s) received or to be received towards the must accompany the claim. You should retain all receipts for a period of 6 years as they may be requested for verification at a later date. Note: You must notify your Revenue office within 21 days if you receive a refund or partial refund of tuition paid. Failure to do so may result in a penalty of 3,

11 Approved Colleges Approved Colleges for the purpose of tuition tax relief include: Universities, Public and Private Colleges and Institutes of Higher Education in the State, which provide courses that are approved for higher education grants. Colleges or Institutions of Higher Education in the State which operate in accordance with certain codes of standards laid down by the Minister for Education and Skills (these Colleges and Institutions must be approved by the Department of Education and Skills for the purposes of this tax relief). Publicly funded or duly accredited Universities and Institutions of Higher Education in another EU Member State. A College or Institution of Higher Education in any other EU Member State providing distance education in this State, which provide courses approved for the Higher Education Grants Scheme (this includes the Open University). Publicly funded or duly accredited Universities and Institutions of Higher Education in non-eu Member States (N.B. applies to postgraduate courses only). Colleges or Institutions (in the State and in any EU Member State), which provide distance education in the State and which operate in accordance with a certain code of standards laid down by the Minister for Education and Skills (these Colleges and Institutions must be approved by the Department of Education and Skills for the purposes of this relief). 11

12 Approved Undergraduate Courses Undergraduate courses must: be carried out in an approved college be of at least two academic years duration, and in the case of courses carried out in Colleges and Institutions that require approval by the Department of Education and Skills for the purposes of this tax relief, the course must be approved by that Department. Approved Postgraduate Courses Postgraduate courses must: be carried out in an approved college be of at least one academic year but no more than four academic years in duration, and lead to a postgraduate award based on either a thesis or an examination. Also, the person taking the course must already have a primary degree or equivalent qualification. Lists of Approved Colleges and Courses Annual lists of approved Third Level colleges in the State and approved undergraduate and postgraduate courses in the State are available on The lists for a current tax year are not available until after 1 July each year. 12

13 Time Limit for Repayment Claims A claim for repayment of tax must be made within four years after the end of the tax year to which the claim relates. For example, claims for 2012 must be made by 31 December Please note you must have paid income tax during the year of your claim in order to receive a repayment. If you owe income tax to Revenue for an earlier year, your repayment may be reduced by this amount. Accessibility If you are a person with a disability and require this leaflet in an alternative format the Revenue Access Officer can be contacted at accessofficer@revenue.ie 13

14 Further Information This leaflet is for general information only. For further information visit or phone your Revenue LoCall service whose number is listed below. Border Midlands West Region Cavan, Donegal, Galway, Leitrim, Longford, Louth, Mayo, Monaghan, Offaly, Roscommon, Sligo, Westmeath Dublin Region Dublin (City and County) East & South East Region Carlow, Kildare, Kilkenny, Laois, Meath, Tipperary, Waterford, Wexford, Wicklow South West Region Clare, Cork, Kerry, Limerick Please note that the rates charged for the use of 1890 (LoCall) numbers may vary among different providers. If you are calling from outside the Republic of Ireland phone This leaflet is intended to describe the subject in general terms. As such, it does not attempt to cover every issue which may arise in relation to the subject. It does not purport to be a legal interpretation of the statutory provisions and consequently, responsibility cannot be accepted for any liability incurred or loss suffered as a result of relying on any matter published herein. Revenue Commissioners February 2016 Designed & Printed by the Revenue Printing Centre 14