Home   Personal tax credits, reliefs and exemptions   Education  

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. Approved colleges and courses
  7. How to claim relief on tuition fees

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 either:

  • in the tax year that the academic year commenced
  • 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

    Jane pays tuition fees for a full-time course commencing in 2014 which costs €7,000. The course runs for nine months and ends in 2015. She pays one fee instalment of €3,500 in September 2014, and the second instalment of €3,500 in January 2015.

    Jane has two options:

    Option one

    She could claim relief on €7,000 for the tax year 2014.

    She must subtract the disregard amount of €2,750 from €7,000. She is left with €4,250. She is allowed tax relief of 20%, which is €850.

    Option two

    She could claim relief on €3,500 in 2014 and €3,500 in 2015.

    For 2014, she must subtract the disregard amount of €2,750 from €3,500. She is left with €750. She is allowed tax relief of 20%, which is €150.

    For 2015, she must subtract the disregard amount of €3,000 from €3,500. She is left with €500. She is allowed tax relief of 20%, which is €100.

    Her total relief for Option two is €250.

    Jane benefits more by claiming relief using Option one.

Next: Paying tuition fees in advance

Published: 28 November 2017 Print this page

Back to homepage Back to top