The school year is about to begin, leading many parents to face various education-related expenses that can be deducted on their tax returns. It is crucial to ensure that a taxpayer identification number (NIF) is included on bills from any family member.
Regardless of whether the NIF belongs to the parents or children, it is essential to request the taxpayer number and subsequently validate it on the Finance Portal.
“A deductible amount equal to 30% of the costs incurred for education and training, including professional training, by any family member, with an overall limit of 800€,” is stated on the Finance Portal.
What is considered educational expenses?
According to information from the Tax and Customs Authority (AT), “education and training expenses encompass costs related to nurseries, kindergartens, daycare centers, schools, educational establishments, and other educational services, as well as expenses for textbooks and school books.”
“Education and training expenses are only deductible if provided by educational establishments that are part of the national education system or recognized as equivalent by the competent ministries, or by entities recognized by the ministries responsible for professional training, provided they are not already regarded as expenses of category B,” the statement adds.
Have you heard about the 52-week challenge? Each week, you deposit an increasing amount to save 1,378 euros by the end. For families who might struggle with higher savings, adjustments to the challenge are possible.
When is there an increase?
The financial literacy portal EI, from the Mutualist Association Montepio, points out an increase for students in interior regions: “Families with students enrolled in educational institutions located in the interior of the country or Autonomous Regions benefit from a 10 percentage point increase on educational expenses, up to a limit of 1,000 euros if the difference pertains to these expenses.”
Additionally, “families with displaced students, those registered in educational institutions over 50 kilometers from their permanent residence and living in rented accommodation, benefit from an increased deductible limit, from 800 euros to 1,100 euros. However, this is provided that the difference, 300 euros, pertains to rental expenses. At most, expenses with rents for displaced student accommodation provide a deduction of 400 euros.”
With the release of university placement results, many students are preparing for college. The tax authorities have announced important updates on how educational expenses for these young individuals are managed.
