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THOUSANDS of Irish renters will be handed a major cash boost in weeks, it's been confirmed.
The rent tax credit introduced at a rate of €500 in Budget 2023 will increase to €750.
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And Finance Minister Michael McGrath confirmed thousands more can now qualify for the extra cash - which is paid into accounts within days of submitting a Revenue claim.
He said an amendment will allow parents who pay for their student children with tenancies in rent a room or digs accommodation to claim the Rent Tax Credit.
The switch will also be backdated to allow parents to claim for rent paid during the 2022 and 2023 tax years.
The previous maximum value of the credit was €1,000 annually for jointly-assessed married couples or civil partners and €500 in all other cases, including single people.
READ MORE IN BUDGET
The Government haven't yet confirmed the amended amount for married couples, but it's expected to be €1,500 to match the €750 which can be claimed by single people.
Minister McGrath said: "In last year’s Budget, the government introduced the rent tax credit to support renters.
"As of the end of September, over 290,000 Rent Tax Credit claims have been made with close to €166million claimed to date and I am pleased to be in a position to increase the value of the Rent Tax Credit from €500 per year to €750 per year for 2024.
"In addition, I have decided to make an amendment to allow parents who pay for their student children who have tenancies in Rent a Room or digs accommodation to claim the Rent Tax Credit.
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"This will also be backdated to allow for claims to be made for the 2022 and 2023 tax years."
And a temporary tax relief is being introduced that McGrath said will primarily benefit small landlords.
He said: "Subject to certain conditions being met, rental income of €3,000 for the year 2024, €4,000 for 2025 and €5,000 for the years 2026 and 2027, will be disregarded at the standard rate."
DOUBLING CALLS
Housing Minister Darragh O'Brien had previously said he wanted the renters tax credit cash boost "increased and expanded" in Budget 2024.
And Higher Education Minister Simon Harris had called for the payment to be doubled.
Minister Harris had said: "I think we need to see two further tweaks. It needs to be increased, €500 is welcome but rent is expensive in this country and I would echo calls from Minister for Housing that he would like to see it increased, I ideally would like to see it doubled if possible."
The parents of students going to college could also claim the tax credit towards campus accommodation, but students living in digs needed to claim it themselves - and their income may not allow them to do so.
Harris had called for the credit criteria to be amended in this area, adding: "The second thing is: at the moment students or their parents can avail of tax credit if you live in college campus accommodation, but only the student can avail of the tax credit if they’re in digs.
"And for some students their income may not be enough to benefit from the tax credit.
"So I’d like to see that changed to be students and parents as well."
Some 400,000 renters were eligible for the credit when it was announced in the Budget last year.
And around 290,000 have so far claimed it, new figures revealed.
The credit was available to be claimed for all of 2022 once it was announced in Budget 2023 and it's set to run for four years - from 2022 to 2025 inclusive.
Some 203,000 taxpayers have claimed the credit for 2022, while 35,44 have claimed for both 2022 and 2023 and over 16,000 have made claims for just 2023.
TAXING TIMES
Experts previously warned that thousands could be missing out on the vital credit.
Taxback.com chiefs said seven in 10 people of 1,000 eligible for the credit still haven't submitted a claim - but warned that issues with landlords were proving a stumbling block for many.
Landlords must be registered with the RTB in order for tenants to make the claim through Revenue.
Taxback consumer tax manager Marian Ryan said: "The rent credit isn’t worth a fortune – but €500 or €1,000 is a lot of money to leave on the table.
"It was a laudable move the Government made by introducing it but for it to work, it definitely needs some tweaking.
"The onus cannot be on the shoulders of the tenant to provide such detailed information and tenants should not be penalised if their landlords are not 100 per cent compliant with private residential regulations."
Marian added: "There are some people who could lose out on the rent credit because they mistakenly believe they’re not entitled to claim it.
"If you’re not paying rent for a principal private residence, or on behalf of a child who is living away from home to attend college, it’s worth knowing that you can generally still claim the rent credit if you’re renting a residential property which is different to your principal private residence – if you need to rent that property for the purposes of work or to attend an approved course."