RENT RELIEF
Major boost for thousands of Irish over €500 or €1k paid into accounts in days amid new warning before payment rises
How to claim as payment hike move confirmed
THOUSANDS of Irish renters have been warned to claim back hundreds of euros they're owed - that hits bank accounts in days.
Finance Minister Michael McGrath said operation of the rent tax credit is being "closely monitored" by his department, with the payment set to continue through to 2025.
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Only 130,000 taxpayers of around 400,000 have claimed the payment - worth €500 or €1,000 - for last year.
The cash scheme, first introduced for 2022, sees single renters get €500 back once they've paid €2,500 rent in the specific calendar year, or jointly-assessed couples getting back €1,000 once they've shelled out €5,000 in rent.
The Government last year confirmed the rate will rise for 2024 to €750 for single people and €1,500 for couples.
But TDs have raised concerns about rental supports amid the cost of living crisis with Labour leader Ivana Bacik questioning Minister McGrath on the effectiveness of the rent tax credit at "easing financial burdens on those renting".
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In response, Minister McGrath said: "Claims for the Rent Tax Credit for the 2022 tax year can only be made by completing an Income Tax Return.
"To date, over 260,000 PAYE taxpayers have made Rent Tax Credit claims for the 2022 tax year.
"For self-assessed taxpayers, the Rent Tax Credit for 2022 is claimed when filing the Income Tax Return, due on October 31 2023, through the Revenue Online Service.
"For claims relating to the 2023 year of assessment onwards, PAYE taxpayers could claim in-year relief using Revenue’s Real Time Credit facility on myAccount, or by completing an Income Tax Return after the end of the year. Both options are available to taxpayers through Revenue’s on-line facilities.
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"I am advised by Revenue that, to date, over 130,000 claims for Rent Tax Credit have been made by PAYE taxpayers for the 2023 tax year.
"It is expected that the number of claims for 2023 will continue to increase, particularly in the first quarter of 2024, as PAYE taxpayers file their Income Tax Returns after the end of the year."
The Minister also reminded renters that they have four years to claim back the credit.
He said: "Taxpayers have until December 31 2026 to claim the Rent Tax Credit for 2022 and until December 31 2027 to claim for 2023.
"The operation of the Rent Tax Credit will continue to be closely monitored by my Department in conjunction with Revenue."
HOW TO APPLY FOR 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.
Deputy Brid Smith also questioned the Minister on whether "renters in unregistered tenancies will remain ineligible for the rent tax credit".
Renters are currently only eligible to claim the credit if their tenancy is registered with the Residential Tenancy Board.
The Minister said: "Responsibility for compliance with the legal obligation to register a tenancy under the Residential Tenancies Act 2004 is a matter for the RTB, and landlords should familiarise themselves with their RTB registration obligations and ensure that they have fulfilled same.
"Where a tenancy is registered with the RTB, claimants are requested to provide the RTB number as part of the claim process. Unregistered tenancies may be reported to the RTB’s Registration Enforcement Unit by email to enforcement@rtb.ie."
Any PAYE taxpayer who hasn't yet claimed the rent tax credit for 2022 or 2023, can get the cash by submitting their Income Tax Return through the myAccount portal on the Revenue website.
And claims can also be made in real time for 2024 through the Manage Your Tax option on the Revenue site once renters have paid €2,500 in rent so far in that tax year.
And self-assessed taxpayers can claim by submitting their Income Tax Returns, also through the Revenue Online Service.
Once eligible, the tax credit is paid out to renters who meet the criteria within a few days of claiming.
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.