Cost of living: How renters can avail of €1,000 using…

Cost of living: How renters can avail of €1,000 using rent tax credit

It has emerged that thousands of renters are yet to claim rent tax credits worth €1,000 for 2022 and 2023.

This scheme, which was announced as part of last September's Budget, allows people to be able to claim tax credit worth up to €500 for each year between 2022 and 2025. New figures revealed that just 22,000 renters have claimed the credit for the two years.

Some 193,283 taxpayer units made claims for 2022 only. Another 9,611 taxpayer units made claims for just 2023.

Here is how you can avail of this scheme:

Do I qualify?

In order to claim the rent tax credit, your landlord must be registered with the Residential Tenancies Board (RTB). You can also be eligible if you're in a "rent-a-room" or "digs" type arrangement.

However, the rent tax credit is not available for "rent-a-room" or "digs" type arrangements if you and the landlord are related or you are paying rent on behalf of your child. You cannot claim the credit if you are a ‘supported tenant’.

This means you cannot be in receipt of state housing support such as the Housing Assistance Payment (HAP) Rent Supplement or Rental Accommodation Schemes (RAS). You cannot avail of the credit if your landlord is a Housing Association or Approved Housing Body.

How much can I claim?

The rent tax credit reduces the amount of income tax that you are due to pay for a tax year. If the credit due exceeds your income tax liability, you will not be able to fully utilise the credit.

Tax relief is granted at 20%. The maximum amount you can be refunded is €1,000 for a jointly assessed couple or €500 for all other cases

If the rent tax credit exceeds your income tax liability, you can only receive a partial refund. This refund would be equal to your total income tax liability for the year.

How to claim the rental tax credit?

For 2022:

You can claim the credit for 2022 by completing your Income Tax Return in myAccount. To claim the credit and complete your Income Tax Return, follow these steps:

Sign into myAccount
Click on "Review your Tax 2019-2022" in the "PAYE Services" section
Request a "Statement of Liability" for 2022
Click on "Complete your Income Tax Return"
In the "Tax Credits & Reliefs" page select "You and your family" and click on "Rent Tax Credit"
Work through the claim process
Submit the Income Tax Return.

For individuals who are self-assessed, you can claim your rent tax credit with the following steps:

Sign into Revenue Online Service
Open the "My Services" screen
Click on "File Return"
Select "Income Tax" from the dropdown menu
Select the tax year for which you wish to file a return (select 2022)
Locate the "Rent Tax Credit" section of the tax return and enter the information requested.

For 2023

You will need to:

Sign into myAccount
Go to the 'PAYE Services' section
Click 'Manage Your Tax 2023'
Click 'Add new credits'
Under the 'You and Your family' section, claim the Rent Tax Credit.

Alternatively, you can claim the credit for 2023 by completing your Income Tax Return for 2023 next year.

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