Mortgage Tax Credit

[marsplastic]

I am buying a house with another person (not married). How does the tax credit system work with 2 people? if the interest part is 1000 euro does this mean we both get 100 extra in our monthly paycheck? Is this correct or am i missing something? Do the banks do this for us or do I contact the revenue? What is the name of form required, if any?

 

[karlod]

Marsplastic

You need to fill out a TRS1 form, you can get this from your bank. You then send this form to the revenue. You monthly mortgage tax relief comes directly off your mortgage payment. So if youre paying 1000 per month and your tax relief is 100, then you repayment will drop to 900. Also your partners relief lower you repayment further.
The revenue and the bank sort all this once the form is filled out.

Hope this helps.
K

 

[marsplastic]

Thanks. Got it!
200 off mortgage each month is quite substantial and i never really factored it in till now. Will probably go from 35 year mortgage to 25 or 30 year now. Thanks again.

 

[Mynydd]

Marsplastic

You monthly mortgage tax relief comes directly off your mortgage payment.
K

Revenue lodges the TRS every month on your bank account. So your mortgage repayments will hit your bank account for the full amount. In my case, TRS is sitting 4 days in my bank account before the bank takes out the mortgage repayment. But I know from others that this can be the other way around.

 

[karlod]

Revenue lodges the TRS every month on your bank account. So your mortgage repayments will hit your bank account for the full amount. In my case, TRS is sitting 4 days in my bank account before the bank takes out the mortgage repayment. But I know from others that this can be the other way around.

Does it effect you monthly payment?
If the TRS came in after the repayment date it wouldnt go through for that particular month so you would pay the full amount (this would genenerally be the case near the time that it is first applied) but the next month would absorb this TRS and the repayment would then represent this. This would then be the case going forward. So you should then have a constant payment. (pending rate hikes, of course)

Mars-the TRS isnt guarenteed to be 100 quid. The max is 133 per month but it can be lower. Im not sure of the criteria but i think its something to do with your age and income also how long youve been a property owner.

K

 

[moloneyg]

The Relief is only on interest paid, and you have to be paying the interest to avail of it, so to get intrest relief on 8000 as a ftp, you only get 20% of it or 1600, and that is 133.33 per month but you have to have a mortgage that is large enough to have 8000 per year interest at lets say 4% you need an outstanding mortgage of 200,000.