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Major boost for thousands of Irish over €750 or €1,500 paid into accounts in 5 days amid new warning after payment rises
But there's a time limit for thousands of Irish to claim free cashback
THOUSANDS of Irish people have been urged to claim a newly-increased tax credit - that'll hit bank accounts within five days.
The rent tax credit - first introduced at a rate of €500 back in 2022 - has been increased to €750 for this year.
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And thousands of householders have been advised that they can apply for the credit in real time once they meet the criteria, rather than having to wait until the end of the year.
The cash scheme previously saw single renters get €500 back once they'd paid €2,500 rent in the specific calendar year, or jointly-assessed couples getting back €1,000 once they'd 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.
And thousands of renters could be owed the credit for previous years, with figures showing how countless payments have been left unclaimed.
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Finance Minister Michael McGrath said PAYE taxpayers can claim the newly increased €750 rent tax credit in-year to ease the financial burden of renting, as soon as they've paid €2,500 in rent for 2024.
Social Democrats TD Gary Gannon questioned Minister McGrath on when the payment could be made to renters for this year.
In response, the Finance Minister said: “PAYE taxpayers can also claim in-year relief using Revenue’s Real Time Credit facility on myAccount.
“This allows taxpayers to receive the benefit of the credit through their payroll over the course of the current year.
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“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.”
The Minister 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.”
HOUSE THAT
The amount of the credit is 20 per cent of your rent payments in the year up to a maximum credit of €750 for an individual or €1,500 for a couple.
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 can be made for rent payments on your home, a second home in Ireland used for work and a property used by your child for a course if they were under 23 when it commenced.
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 Richard Bruton also questioned Minster McGrath on “the estimated amount of unclaimed tax reliefs in each of the years 2019 to 2023”.
Minister McGrath responded: “To date, Revenue has refunded €493million to 839,000 taxpayers in respect of the 2019 tax year.
“while, €444million has been refunded to 708,000 taxpayers for 2020, €574million has been refunded to 853,000 taxpayers for 2021, and €586million has been refunded to 801,000 taxpayers for 2022.
“A further €300million has been refunded to 400,000 taxpayers for 2023.
“Based on the current provisional end of year position for PAYE taxpayers who have yet to submit an Income Tax return for the last four years in which a refund may be claimed, Revenue records indicate that, for 2020, €86million is overpaid by 174,000 customers; for 2021, €133million is overpaid by 236,000 customers; for 2022, €154million is overpaid by 278,000 customers and, for 2023, €331million is overpaid by 499,000 customers.”
CLAIM CASH
But the Minister said that those figures - correct as of early February - only provide a snapshot as to how many have claimed the credit.
And he urged any renters due money back to submit their claims.
He added: “I can advise that Revenue, in conjunction with my Department, recently launched a public information campaign to raise awareness among PAYE taxpayers about the range of tax credits and reliefs available, and how they can claim those credits and reliefs.”
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.”