The rent tax credit is a financial help program that helps residents of Ireland reduce the amount of tax they are eligible to pay and helps reduce their overall tax liabilities. However, claiming rent tax credit in Ireland is a complicated process. Hence, taking the help of professional tax advisors is pertinent. If you want to know more about this program, the eligibility criteria, and the application process, read the article below.
What is a Rent Tax Credit?
Rent tax credit is a program available to taxpayers from 2022 to 2025. The program aims to alleviate some of the financial burdens on the tax-paying residents of Ireland by offering a tax credit. To be eligible for this program, you must have an income tax liability to offset it.
The amount of rent credit you can claim is calculated once you have submitted your request. But as a rule of thumb, the credit amount depends on the rent and the income tax you pay. The amount paid for rent means how much you pay for the property and doesn’t include the cost of utilities and other services. If you want professional guidance on rent tax credit, you can take the help of Irish Tax Rebates to learn more.
Who is Eligible for the Rent Tax Credit?
To qualify for a rent tax credit, tenants must meet specific eligibility requirements:
- Private rented accommodation
The property rented must be in Ireland and must be privately owned. Accommodations owned by local authorities or housing associations are not eligible for this tax exemption.
- Tenancy agreement
Tenants must have a valid tax agreement outlining the terms and conditions of rental arrangements.
- Rent payment
Tenants must be paying for the property they occupy as their main residence. This includes rent paid for a room shared in a house or apartment.
- Taxpayer Status
Tenants must be liable to pay income tax in Ireland to claim the Rent Tax Credit.
How to Claim?
If you fall under the eligibility category mentioned above, here is how you can claim your rent tax credit:
For Pay As You Earn (PAYE) Taxpayers
- Sign in to myAccount.
- Go to the PAYE section and click on “Review your Tax 2020-2023”.
- Request for a statement of liability for the required year.
- Go to “complete your income tax return”.
- Now select “you and your family” in the “tax credits and relief” page and go to rent tax credit.
- Work through the claims and submit your return.
Through a Self-Assessed System for Self-Employed Individuals
After you have completed your annual Income Tax Return (Form 11) in Revenue Online Service (ROS), you can claim the rent tax credit.
- Sign in to ROS.
- Click on my services.
- Open “file return”.
- A drop-down menu will appear where you must select “income tax”.
- Locate the “rent tax credit” section and enter the information required.
Please note that it is important to provide your Residential Tenancies Board (RTB) number for your tenancy, wherever applicable. If you fail to provide this information, your credited amount may be withdrawn at any time.
Seek Professional Guidance for a Smooth Filing Experience
Filing for rent tax credit is complicated, so many income taxpayers prefer professional guidance to simplify the process. If you plan to claim for the benefit this financial year, contact a professional to understand the obligations and avail of the relief.
