THOUSANDS of Irish parents have been urged to claim back €500 or €750 in cash they’re owed – that hits accounts within days.
Finance Minister Michael McGrath has urged parents to put in Rent Tax Credit claims for digs they’re paying for for their college-going kids, even when the accommodation owner hasn’t provided receipts.
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The rent tax credit, which was first introduced at a rate of €500 back in 2022, has been increased to €750 for this year.
The cash boost first saw single renters get €500 back once they’d paid €2,500 in rent in a calendar year, or jointly-assessed couples get €1,000 once they’d paid €5,000.
The Government last year confirmed the rate will rise for 2024 to €750 for single people and €1,500 for couples – who have paid the same amount of rent as previous years’ criteria.
The Rent Tax Credit was further extended in Budget 2024 to include parents who pay for college digs for their children.
Minister for Finance Michael McGrath advised that parents can claim the rent tax credit if they are paying for their children’s rent while they are attending college.
Parents will be able to claim this even if the landlord has not been providing receipts the Minister has also assured.
The Rent Tax Credit was first introduced in the Finance Act 2022 and allows tax payers to claim on rent paid from 2022 onwards.
The original act saw single renters get €500 back once they’ve paid €2,500 rent per year, or jointly-assessed couples receiving €1,000 once they’ve paid €5,000 in rent.
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It was announced last year that the 2024 rate would be rising to €750 for single people and €1,500 for couples.
Concerns have been raised on whether parents paying for student digs who want to claim the taxback but don’t have receipts from the landlord could do so.
But the Finance Minister moved to reassure parents that the rent tax credit should still be available to them, if they can provide as much information as possible to Revenue without having the receipts.
In reply to a parliamentary question from TD Kathleen Funchion, the Minister urged parents to claim for any year that they’re owed since 2022 – after the payment was backdated to include digs from last year.
He said: “In Finance Act 2023, the eligibility of the credit was extended to parents who pay for their student children’s rental accommodation in the case of rent-a-room accommodation or digs.
“This amendment will applies to the years of assessment 2024 and 2025 and retrospectively to the years of assessment 2022 and 2023.
“In circumstances where receipts in respect of a rent-a-room tenancy are not available, an individual can still claim the Rent Tax Credit and should be in a position to provide as much information as possible to Revenue about their rental arrangement when making a claim.”
Parents affected are urged to provide details including address of the property, the total amount of rent that has been paid, the date the lease began and the name of the landlord.
If the child returns to the family home at the weekend or during holidays throughout the semester, parents can still claim the rental tax relief.
HOW TO CLAIM RENT TAX CREDIT
- Log into revenue.ie.
- In the first box, under PAYE Services, click Review your Tax.
- Once you have filled out your basic details and checked your income tax details are correct, you can apply.
- To apply for the tax credit, go to the You and Your Family section, and scroll down to rent tax credit.
- You’ll be asked to fill out your basic details and if you receive any housing support.
- Your PPS number is required and Revenue also asks for the RTB number of the registered property.
- Renters are asked to fill in the landlord’s home address and state if they are resident in Ireland but this section is not essential.
- Claimants are also asked to declare if they’re related to the landlord and whether the property is your main residence.
- The Rent Tax Credit Form is next, which allows users to put in their total rent and calculate what they’re entitled to. The maximum which can be applied for is €2,500 meaning someone paying rent for an entire year would likely have paid well over €2,500 and so be entitled to the full 20 per cent or €500 tax credit. This will amend to €750 then for the year 2024, but €500 will be the maximum claim for tax years 2022 and 2023.
If a student is paying their own rent, they are still eligible to apply for the rent tax credit under their own name – whether they are renting a whole property or a room.
Students must be under an agreed tenancy with the landlord and registered with the Rental Tenancies Board.
Student Specific Accommodation, which is provided by universities, colleges or private sector organisations, must be registered or students will not be eligible for the tax credit.
And the €500 credit rate for both 2022 and 2023 can now be claimed by parents paying for students’ accommodation in digs, after amendments to the scheme were confirmed in Budget 2024.
Claims for 2022 and 2023 can be made on Revenue’s website, and claims for 2024 can be made in real time once renters have already paid €2,500 in rent this year.
The Minister previously said: “Following such a claim, an amended Tax Credit Certificate will issue confirming the amount of relief and a revised Revenue Payroll Notification containing the total of the claimant’s tax credits will be made available to their employer.
“This process typically takes no more than three to five working days.”
He added: “Claims for the Rent Tax Credit for 2022 and 2023 can be made by completing an Income Tax Return.
“For self-assessed taxpayers, an income tax return can be filed through the Revenue Online Service, and PAYE taxpayers can file an income tax return through myAccount.
“Any refund of tax due will be transferred to the bank account on record, and the majority of refunds are issued within five working days of making a claim.”
