Families urged to claim new payment that could see up to €1,000 back in their pocket

Parents across Ireland have been urged to be aware that they can claim Rent Tax Credits for rooms their children are renting in college, that the parents are paying for, even if receipts were never provided.

Minister for Finance Michael McGrath appealed to parents to apply for the relief that could be a much needed cash boost for families.

The credit was originally brought in in 2022 but has since widened in Budget 2024 to help ease the cost of living for parents who are paying massive rates for accommodation for their children attending college.

Parents can avail of this welcomed credit as long as they can provide as much information as possible to Revenue.

Speaking in the Dáil, Minister McGrath 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.

"This amendments 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."

What you need to provide to Revenue:

• The amount of rent paid in total
• The address o the property
• Name of the landlord
• Date the tenant began the lease

If the child returns home at the weekends and during holidays, parents can still claim the tax credit.

If the student pays the rent themselves, they can claim the tax credit in their own name, however, the student must be under an agreed tenancy with the landlord and also registered with the Rental Tenancies Board (RTB).

If the student is living in Student Specific Accommodation provided by their college or another private investigation, this must be registered or the tax relief cannot be claimed.

For any claims relating to the 2022 and 2023 assessment year click here.

Claims for the 2024 can be made once the student or parent have already paid €2,500 in rent this year.