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Tuition fees paid for third level education

  1. Overview
  2. How do you calculate the relief?
  3. Restrictions
  4. Paying tuition fees in instalments
  5. Paying tuition fees in advance
  6. How to claim relief on tuition fees
  7. Approved colleges and courses

Paying tuition fees in instalments

You may pay tuition fees in instalments. For example, you may pay fees for one course over two tax years.

You can claim relief on your tuition fee instalments:

  • in the tax year that the academic year commenced
  • or
  • in the tax year in which you paid the instalment.

If you claim relief for the tax year that the instalment was paid in, you must subtract the disregard amount that applies to that year. It is generally more beneficial to you to claim relief in the tax year that the academic year commenced.

  • Example 1

    Jane pays tuition fees for a full-time course commencing in 2022 which costs €7,000. The course runs for nine months and ends in 2023. She pays one fee instalment of €3,500 in September 2022, and the second instalment of €3,500 in January 2023.

    Jane has two options:

    Option one

    She could claim relief on €7,000 for the tax year 2022.

    She must subtract the disregard amount of €3,000 from fees amount of €7,000. She is left with €4,000. She is allowed tax relief of 20%, which is €800.

    Option two

    She could claim relief on €3,500 in 2022 and €3,500 in 2023.

    For 2022, she must subtract the disregard amount of €3,000 from fees amount €3,500. She is left with €500. She is allowed tax relief of 20%, which is €100.

    For 2023, she must subtract the disregard amount of €3,000 from fees amount €3,500. She is left with €500. She is allowed tax relief of 20%, which is €100.

    Her total relief for Option two is €200.

    Jane benefits more by claiming relief using Option one.

  • Example 2

    John pays tuition fees for Ann and Bill as follows:

    2021/2022 Academic Year Fees for Ann €18,000.

    €9,000 paid in September 2021 and €9,000 paid in January 2022.

    2022/2023 Academic Year Fees for Bill €3,000 paid in September 2022.

    John has two options.

    Option 1 Claim relief in the tax year that the academic year commenced.
    John's 2021 Income Tax Return: Student Ann €7,000
    Less disregard amount €3,000
    Amount relief applies to €4,000
    Tax relief received @ 20% €800
     
    John's 2022 Income Tax Return: Student Bill €3,000
    Less disregard amount €3,000
    Amount relief applies to €0.
    Option 2 Claim relief in the tax year in which the instalment was paid.
    John's 2021 Income Tax Return: Student Ann €7,000
    Less disregard amount €3,000
    Amount relief applies to €4,000
    Tax relief received @ 20% €800
     
    John's 2022 Income Tax Return*: Student Bill €3,000
    Less disregard amount €3,000
    Amount relief applies to €0

    * No relief due for €9,000 paid in January 2022. The maximum relief of €7,000 for 2021/2022 academic year has already been allowed for this course.

    Note

    The maximum relief of €7,000 applies to fees paid for each academic year of a course. The €3,000 disregard amount applies to a claim made in a tax year.

Next: Paying tuition fees in advance

Published: 20 September 2024 Print this page

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