Seeing your children embark on the journey of third-level education is a major milestone for all proud parents. However, the costs of third-level education place a huge financial strain on parents and young people.
Thankfully, there may be some financial respite on the horizon.
Budget 2023 saw the introduction of a Rent Tax Credit commencing in the year 2022 forward. This has been welcomed by many taxpayers who are currently renting or paying rent on behalf of a child attending university. The Rent Tax Credit is worth €500 per individual and €1,000 for a jointly assessed couple per year.
Parents of Students who rent a room or pay rent will receive credit of €500 per taxpayer per year, where they pay their child's rent for the academic year. The credit will apply to the years 2022 – 2025. The detail required to obtain the credit will include the following:
- The address of the rental property
- Name and address of your landlord or letting agent
- Residential Tenancies Board (RTB) number
- Amount of rent paid per year
- Date the tenancy commenced
The credit can be claimed by anyone paying rent for their home or paying rent for a child to facilitate the child’s attendance on an approved course i.e., college accommodation.
The Rent Tax Credit can also be claimed by an individual who is renting accommodation to facilitate their work. For example, a person whose main home is in Cork, but owing to the location of their work, lives, and rents in Dublin from Monday to Friday.
to facilitate their work
You can only claim this tax credit if you are paying rent to a private landlord or letting agency.
The credit will be available for the years 2022 to 2025. Taxpayers will be able to claim the credit for rent paid in 2022 in early 2023.
Irish Tax Rebates will, as always, keep its clients up to date in relation to the Rent Tax Credit, and provide its clients with the most efficient method possible to claim the credit.
To find out more visit: Irish Tax Rebates
