Renters urged to claim tax credit worth €1,500

Many renters have yet to claim their tax credit, which is worth up to €1,500 a year to a couple.

Senator Robbie Gallagher is urging all of those eligible to claim the benefit.

The renter tax credit was increased to €750 as part of Budget 2024, or €1,500 per couple. It has been put in place until next year. Last year 256,205 renters claimed the tax credit, at a total cost of €145m. The average amount claimed from the credit this year so far is €830, according to Revenue figures.

“The Department of Finance estimated that 400,000 renters would be eligible. But 40pc of renters last year did not claim the credit,” revealed Senator Gallagher.

The Fianna Fáil man says it’s important to raise awareness of the tax credit so that more people avail of their entitlement. “For claims relating to 2024, PAYE taxpayers have the option of claiming the rent tax credit due to them either throughout the year as rent is incurred or at the end of the year through their income tax return,” he explained.

This will, generally, result in a “lump sum” refund to the claimant in the year following the year of assessment rather than a weekly or monthly adjustment of liability as occurs with “in year” claims.

To date, 2024 claims are in line with previous years. Revenue has conducted an information campaign to highlight the ease of use of the online myAccount system and to raise awareness of a range of key tax credits and reliefs available to taxpayers including the rent tax credit.

Claims for the rent tax credit in respect of the 2022 and 2023 years of assessment can still be made by PAYE taxpayers by submitting an income tax return for that year. Self-assessed taxpayers may not be making their 2023 tax returns until October 2024 and, if eligible, can claim the credit at this stage.