Step 1: Understand the Concept A Mortgage Interest Tax Credit (MITC) is a form of tax relief based on the qualifying mortgage interest paid for your home in a given tax year. 10 Steps to Applying for the New Mortgage Interest Tax Credit
Step 2: Check the New MITC Introduced in Budget 2024, the MITC is a temporary credit applicable only to the tax assessments for 2023, established under the Finance Act 2023.
Step 3: Previous Scheme Note that a prior mortgage interest relief scheme ended on January 1, 2021. Mortgages taken out after December 31, 2012, were not eligible for this relief.
Step 4: Qualification Criteria To qualify for the MITC, specific conditions must be met. These criteria relate to your mortgage loan, property, and the nature of the mortgage interest payments.
Step 5: Mortgage Loan Conditions Ensure your outstanding mortgage balance falls between €80,000 and €500,000 as of December 31, 2022. Your loan must be with a qualifying lender listed by the Central Bank of Ireland.
Step 6: Interest Payment Confirmation You must have paid interest on the loan in both 2022 and 2023. Additionally, the interest on the loan must have increased from 2022 to 2023.
Step 7: Property Requirements Your property must be located in Ireland, serving as your sole or main residence, or a residential property used for work purposes by you, your spouse, or civil partner.
Step 8: Additional Eligibility Explore the possibility of claiming the credit if you’re paying mortgage interest for a dependent relative’s main residence, meeting specified criteria outlined in the Taxes Consolidation Act 1997.
Step 9: Calculate Potential Credit The MITC is 20% of the increased interest paid on your mortgage in 2023 compared to 2022, with a maximum credit capped at €1,250.
Step 10: Claiming the Credit Claim the MITC by completing an income tax return for 2023 using Revenue’s MyAccount or ROS services. Look for the ‘mortgage interest tax credit’ option on the tax credits page. The claiming facility should be available by February 2024.
Required Documents: To claim the MITC, you’ll need to submit:
- Certificate of mortgage interest for 2022
- Certificate of mortgage interest for 2023
- Confirmation of your mortgage balance at December 31, 2022
Upload these documents online using Revenue’s MyAccount or ROS services. Refer to Revenue’s guide to the MITC for detailed information on the claiming process.
10 Steps to Applying for the New Mortgage Interest Tax Credit
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