Cost of living: Parents urged to apply for handy relief worth up to €700
Minister for Finance Michael McGrath has appealed to parents to make sure they don’t miss out on a handy relief if they are eligible.
The minister has urged parents to be aware they can claim Rent Tax Credits for rooms their children are renting in college that their parents pay for, even if receipts haven’t been provided.
The welcomed credit was brought in in 2022 but was then widened in Budget 2024 to help alleviate the cost of living pinch on parents who fork out money for rooms for their children in college.
The finance minister stressed to parents that they can still avail of the handy credit, given they are able to provide as much information to Revenue as possible, RSVP Live reports.
Speaking in the Dail, he said: “In Finance Act 2023, the eligibility of the credit was extended to parents who pay for their student children’s rental accommodation in the case of rent-a-room accommodation or digs.
Minister for Finance, Michael McGrath
“This amendment will apply to the years of assessment 2024 and 2025 and retrospectively to the years of assessment 2022 and 2023.
“In circumstances where receipts in respect of a rent-a-room tenancy are not available, an individual can still claim the Rent Tax Credit and should be in a position to provide as much information as possible to Revenue about their rental arrangement when making a claim.”
Rent can be a costly monthly expense
Parents who are eligible must provide details to receive the credit, including the amount of rent paid in total, the address of the property, the name of the landlord, and the date the tenant began their lease.
Parents can still claim the rental tax relief if their child returns to their family home at the weekend or during holiday periods. Furthermore, if the student pays their own rent, they are eligible to claim the credit under their own name.
However, students must be under an agreed tenancy with the landlord and registered with the Rental Tenancies Board.
If a student lives in Student Specific Accommodation provided by the university, college or other private organisation, then this must be registered or the student will not be eligible for the credit.
To make a claim for 2022 and 2023 you can head to the Revenue website here. Claims for 2024 can be made once renters have already paid €2,500 in rent this year.
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