As a college student in Ireland, you might be wondering how you can save money on your taxes. Well, there’s good news – you may be eligible for a rent tax credit. This credit is available to people who pay eligible rent and can be a great way to get a tax refund. In this article, we’ll explain what the rent tax credit is, who can claim it, and how to apply for it.
What is Rent Tax Credit?
The Rent Tax Credit is a tax relief scheme that is designed to help renters. It is a credit against your income tax liability and is worth up to €500 for a single person. It can be claimed by you, the student, against your own tax bill, if you are paying tax, OR The rent tax credit can be claimed by your parents instead, if you are renting RTB registered accommodation.
Top Tax Tip
If you earned more than €17,000 in 2022, then you likely have a tax bill and can claim the rent tax credit yourself and get up to €500 refund.
If you earned less than €17,000 in 2022, one of your parents may be able to claim up to €1,000 for the rent you paid!
Not sure which claim will result in higher tax? We are here to help!
Who Can Claim The Rent Tax Credit?
- If you paid the Rent yourself and you earned more than €17,000 in 2022 , relief can be granted on the basis that the tenancy is either registered with the Residential Tenancy Board (RTB), or can be rented under Rent a room agreement from an unrelated landlord. If you are renting from a relative, the tenancy must be RTB Registered.
- If your parents paid and claim the Rent tax credit for rent paid on your behalf, the tenancy must be registered with the Residential Tenancy Board (RTB) – so they cannot claim the rent tax credit if you are renting under a rent a room arrangement, sorry!
- In each case, you cannot claim for rent paid on a property that you get housing support for, including: The Housing Assistance Payment (HAP), Rent Supplement, The Rental Accommodation Scheme, etc.
- No Rent tax credit can be given in any case if you are renting from your parents and any rent is paid to them.
How to Claim Rent Tax Credit?
If you meet the eligibility criteria for the rent tax credit, you can claim it yourself by completing a tax return. You can do this online through the Revenue by filling out an online tax return. You will need to declare all employment and taxable social welfare income, confirm all eligibility criteria for the Rent tax credit and any other tax credits you would like to avail of.
At Red Oak, we understand that taxes can be confusing, especially for college students who may not have a lot of experience with them. That’s why we offer a range of tax services to help you navigate the tax system and get the most out of your tax credits and reliefs.
Here we can take the stress away from you and make the process hassle free. Sign up here today: New Customers – Red Oak.
If you’re a college student in Ireland who is paying rent, you may be eligible for the rent tax credit. This credit can be a great way to reduce your tax bill and save money. To claim the rent tax credit, you’ll need to meet certain eligibility criteria and complete a tax return.
If you need help with your tax return or have any questions about the rent tax credit, contact Red Oak. Our team of tax professionals is here to help. Visit https://redoak.ie/ for more information.
SETU on placement with Red Oak Tax Refunds