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Who Qualifies for Rent Tax Credit

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The Rent Tax Credit is a financial benefit aimed at reducing the income tax you owe if you’re a renter. Here’s what you need to know: Who Qualifies for Rent Tax Credit

Eligibility:

  • If you pay rent, you may qualify for the Rent Tax Credit.
  • You can claim it for rent payments made in 2022 or 2023 by filing an income tax return. For payments in 2024, PAYE taxpayers can claim in real-time.
  • The credit is available from 2022 to 2025.

Amount:

  • The credit is 20% of your rent payments in the year, with maximums of €750 for individuals and €1,500 for jointly assessed couples.
  • If a smaller amount reduces your income tax to zero, that’s the maximum credit you’ll receive.
  • For 2022 and 2023, the credit was €500 for individuals and €1,000 for couples.

Claiming:

  • Each individual or couple renting a property can claim the credit for the rent they pay.
  • Not eligible for claims: security deposits, repairs, maintenance, board, laundry, utilities, or other services.

Qualification:

  • You can claim for your primary home, a second home in Ireland used for work or study, or a property for your child’s approved course.
  • Payments must be for a property in Ireland.
  • Not eligible for claims: properties receiving housing support like HAP, Rent Supplement, RAS, or cost rental housing.

Tenancy Registration:

  • Your tenancy must be registered with the Residential Tenancy Board (RTB), unless it’s a license arrangement.
  • Some tenancies ineligible for credit include those with a related landlord or for a child’s property.
  • Budget 2024 changes allow claims for rent-a-room or digs arrangements for a child’s approved course retroactively for 2022 and 2023.

Landlord:

  • Your landlord cannot be a housing association, approved housing body, local authority, parent, or child if the property is for your child’s course.
  • When applying, you need your landlord’s information like name, address, PPS number, Tax Reference number, and Local Property Tax number.
  • Landlords can provide this information directly to Revenue through myEnquiries.

How to Claim

Who Qualifies for Rent Tax Credit

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