27 Sep 2023Have you claimed your rent tax credit?
Overview
The new Rent Tax Credit is available for the tax years 2022 to 2025. The Rent Tax Credit reduces the amount of Income Tax that you are due to pay for a tax year.
To benefit from the Rent Tax Credit, you must have an Income Tax liability to offset against it.
The amount of Rent Tax Credit you can claim will be calculated for you when you submit your claim. This amount will depend on the amount of:
-rent you pay and Income Tax you pay.
Rent means the amount you pay for use of the property. It does not include any amount you pay for extra services such as utilities, board or laundry. You should exclude any amount you pay for these services when calculating the rent you pay.
The maximum value of the Rent Tax Credit is €1,000 per year for jointly assessed married couples or civil partners. The maximum value is €500 in all other cases, including single persons. This is the case no matter how many properties you pay rent for during the year.
Subject to a number of conditions, the Rent Tax Credit may be available where you pay rent for:
-your principal private residence
-another property you use to facilitate your attendance at work or on an approved course or a property used by your child to facilitate their attendance on an approved course.
The conditions which apply relate to the:
-location and use of the rental property
-type of tenancy
-relationship between you, or your child, and the landlord and age of your child and the type of course they are attending, where relevant.
Qualifying conditions for all claimants
There are several conditions which must be met for all claims of the Rent Tax Credit.
How to claim for 2022
How to claim if you are a PAYE taxpayer:
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, please 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 a step-by-step guide on how to complete the claim process, please see Rent Tax Credit guidance.
If you are a PAYE taxpayer, you are able to claim the credit in-year through myAccount, for rent paid in 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.
How to claim if you are self-assessed
You will shortly be able to claim the credit for 2022 by completing your annual Income Tax Return (Form 11) in Revenue Online Service (ROS). To claim the credit, complete your Income Tax Return and follow these steps:
-sign into ROS
-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.
Tenancy The payment must have been made under a tenancy. A tenancy must have been entered into with the consent of the landlord.
Certain tenancies must be registered with the Residential Tenancy Board (RTB). This includes Student Specific Accommodation (SSA) provided by universities, colleges or private sector organisations. If this registration is not complete, the claimant will not be eligible for the Rent Tax Credit. The RTB website sets out full details of the various tenancy types and conditions required for registration.
In certain cases, the Rent Tax Credit applies for tenancies which do not need to be registered with the RTB. This includes ‘rent-a-room’ or ‘digs’ type arrangements.
However, the Rent Tax Credit will not be 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.
Interesting read: As printed on the Journal.ie:
JUST UNDER 50,000 individuals or couples have claimed the Rent Tax Credit this year out of the 400,000 individuals who are eligible to apply, new figures show.
The figures come as the Government contemplates doubling the amount available for renters to claim back in next month’s Budget.
The Rent Tax Credit was introduced in Budget 2023 and is worth €500 per year per claim. Renters who are paying tax on their earnings can claim the money back from Revenue as long as their landlord is registered with the Residential Tenancies Board (RTB).
Judging by the newly released figures, the vast majority of those seeking to claim it have not yet done so. Claimants will, however, have up to four years to claim the credit for this year.
The measure was introduced to ease pressure on renters as a result of the cost-of-living crisis. It is claimed on a “taxpayer unit” basis, meaning it can be claimed by an individual who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment.
The Government has signalled that it plans to increase the Rent Tax Credit in next month’s Budget. Finance Minister Michael McGrath said he was ”examining the rent tax credit” last month.
However, new figures show that just 49,335 taxpayer units had claimed the credit for this year up until 13 September. This is despite the Department of Finance (which oversees the credit via Revenue) estimating that 400,000 individuals are eligible to claim the credit.
The figures were given to Sinn Féin TD and housing spokesperson Eoin Ó Broin and Fine Gael TD Richard Bruton in response to parliamentary questions.
In total, according to the figures supplied, 286,419 Rent Tax Credit claims have been made by 252,317 taxpayer units for 2022 and 2023 to date. This breaks down as:
-202,982 taxpayer units that made claims for 2022 only
-34,102 taxpayer units that made claims for both 2022 and 2023
-15,233 taxpayer units that made claims for 2023 only
The figures suggest that if 2023 figures are to match that of last year a large cohort of those eligible should make their claim later in the year.
“First of all, the very low level of uptake for this year is very concerning,” said Eoin Ó Broin.
Ó Broin said that the government had not done enough “to ensure that those renters who need this credit but are least able to access it” are catered to.
He said that people from migrant or lower income backgrounds may not be aware of the existence of the credit or how to access it and that more needed to be done to advertise its availability.
“We need the Residential Tenancies Board and the Department of Finance to be much more proactive in showing that this is available,” he said.
RTB registered
Ó Broin also said it had been reported to him that the fact that a tenancy had to be registered with the RTB provided a barrier for many tenants.
“We’re hearing lots of complaints that RTB registration being mandatory is a real problem,” he said.
Renters may not wish to contact a landlord to ask them to register in case this puts their tenancy at risk, he said.
One person renting in Dublin with their partner spoke with The Journal on condition of anonymity. They said they would not be claiming the credit even though they were entitled to do so, as their tenancy was not registered with the RTB.
“There’s a very strong financial incentive for us to shut up and say nothing and not claim this tax rebate,” they said.
“Because if there was any suggestion going anywhere close to Revenue that might mark those payments down as rental income benefitting someone else, I’d be seriously jeopardising my personal relationship with the landlord and consequently my entire ability to stay in this country and work.”
The person said they would like to be able to claim the credit, but that it was preferable to be able to live somewhere, as they had been “completely priced out of the market” in Dublin.
“We’re taking this because it’s the only thing we’ve got,” he said.
