Tax Credits and Reliefs Available for College Students and Parents

With the Leaving Cert results coming out today, CAO offers will not be far behind and for students and parents alike it is important to know what reliefs and credits are available to help you through the next three to four years.

Tax Relief on College Tuition

If students are not eligible for the SUSI Grant, then either the student or parent will need to pay the tuition fees. There is 20% tax relief back after the first €3,000, up to a maximum of €7,000 per course. This applies to whoever pays for the fees. The relief is mostly used in circumstances where parents have more than one child in college. For example, if there are two kids at college and one course costs €3,000 and another course cost €5,000, then the total college fees paid by the parents are €8,000. The first €3,000 is disregarded and there is relief available on the remaining €5,000 which could result in a maximum of €1,000 tax back. This relief is also available for courses provided by colleges or institutions in other EU Member States or in the UK that provide distance education in Ireland. The courses must be approved for the higher education grants scheme and include the Open University.

Rent Tax Credit

If your child (under the age of 23) moves out to stay at accommodation closer to their college, you may be eligible to apply for the Rent Tax Credit which can be tax back of up to a maximum of €1,000 or €2,000 for a couple jointly assessed. The property must be used by your child specifically to facilitate his or her attendance at an approved course. The property must be the child’s principal private residence during term time. You can still claim the Rent Tax Credit if your child returns to the family home outside of term time. The accommodation must be registered with the RTB however in certain cases, the Rent Tax Credit applies for tenancies which do not need to be registered with the RTB. This includes ‘rent-a-room’ or ‘digs’ type arrangements. The Rent Tax Credit is not available for any type of arrangements if the child and the landlord are related. These reliefs can be applied for via your MyAccount under ‘Manage your tax for the current year’ or after the year end under ‘Manage your tax for the previous 4 years’. If the above reliefs applied to you in 2021-2024 it is not too late to file your tax return and get your tax back!
Please note that it is important to retain copies of your receipts and documents to confirm eligibility should Revenue query your application.