Thousands of people in Ireland are eligible for a €500 yearly cash boost if they pay income tax but they may not even know it.
There are three groups of people that can claim a €500 cash boost if they pay rent on a property, between the years 2022 to 2025.
Here’s all the details about who is able to get it, according to RSVP Live.
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The Rent Tax Credit was introduced last year and it allows people who pay income tax to reduce their tax.
Who can claim the Rent Tax Credit?
Renters can claim the tax credit for rent payments you made in 2022 by making an income tax return for 2022.
They can also claim the tax now for payments made in 2023 if you are a PAYE taxpayer.
You can claim the credit for rent payments you have made for:
- Your home
- A second home in Ireland that you use to take part in your work or an approved course
- A property that is used by your child to take part in an approved course, if they are under 23 at the start of the year in which they begin the course
The rent payments must be for a home that is in Ireland.
You cannot claim for rent payments on a property that you get housing support for, including:
- The Housing Assistance Payment
- Rent Supplement
- The Rental Accommodation Scheme
- Cost rental housing
This is the case even if you make a top-up payment in addition to the housing support you get.
How much is the Rent Tax Credit?
The amount of the credit is 20% of your rent payments in the year, up to a maximum credit of:
- €500 for an individual
- €1,000 for a couple who are jointly assessed for tax
If a smaller amount would reduce your income tax to zero, that amount is the maximum credit you can get.
If a number of tenants pay the rent for a property, each individual or couple can claim the Rent Tax Credit for the rent they pay.
You cannot claim for payments for:
- A security deposit
- Repairs or maintenance
- Board, laundry, utilities or other services
You can find out more about this tax credit here.
