Student rent tax credit

I am divorced and i am in the process of claiming the student rent tax credit (ex husband and I paid for our son's student accommodation - Children allowance that i have saved since he is born . I was stupid enough to put the child benefit saving account under both our name). As I am the one transferring the rent, I am claiming it. Could you explain to me how it is going to work as ex husband wants to have EUR 250 back to him now. I won't get a refund of EUR 500 for 2022 (ex thinks I will ). My understanding is that the tax credit for rent relief for 2022 will be carry over for 2023 and it will reduce my tax liability, where I am not sure is ifl I technically get EUR 500 more at the end of the year (I am not from Ireland and tax credit is a mystery to me not sure I understand how tax credit works) - I would appreciate if one of you could explain to me how much I will owe ex husband? Thanks

In simple terms, the €500 credit is worth the following in terms of the increase in the net income that you receive:

• €500 x 20% = €100 if you're a low rate tax payer
• €500 x 40% = €200 if you're a high rate tax payer

(I'm ignoring the case of someone paying high rate tax on less than €500 for simplicity).

Ignore - see following posts...

(deleted for clarity)

The credit due to a claimant is equal to the lower of:
1) the total rent payments made by the claimant during the tax year at 20%, and
2) the specified amount at 20%.

The specified amount is €5,000 for a jointly assessed couple and €2,500 in all other cases.

This means that the maximum rent tax credit due in a tax year is €1,000 for a jointly assessed couple (€5,000 x 20%), and €500 (€2,500 x 20%) in all other cases.

Click to expand...

T McGibney said:

If this is correct, it's an allowance, not a credit?

Click to expand...

Sorry, I'm wrong.
The €500 credit (correct @T McGibney) is worth up to the full €500 in terms of the increase in your net income.

Thank you for your explanation

I did the return yesterday and got the statement of liability which show the revenue will refund me EUR 500 (which is the rent credit) for 2022. Good news.

I have two student tenants in my house under licensee agreements. I'm not registered with RTB. Can each of them claim the €500 tax credit ?

Revenue says they can. See section 2.3

mct1 said:

Revenue says they can. See section 2.3

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-11A.pdf

Click to expand...

Yes 2.3 2 is clear on the question. Thanks.

Maximizing feed said:

I did the return yesterday and got the statement of liability which show the revenue will refund me EUR 500 (which is the rent credit) for 2022. Good news.

Click to expand...

Well done, I'm still waiting on my return to be processed

Maximizing feed said:

As I am the one transferring the rent, I am claiming it. Could you explain to me how it is going to work as ex husband wants to have EUR 250 back to him now. I won't get a refund of EUR 500 for 2022 (ex thinks I will ). My understanding is that the tax credit for rent relief for 2022 will be carry over for 2023 and it will reduce my tax liability, where I am not sure is ifl I technically get EUR 500 more at the end of the year (I am not from Ireland and tax credit is a mystery to me not sure I understand how tax credit works)

Click to expand...

Is your husband paying half the rent, albeit through you? My reading of the general guidance is that he could make his own 2022 return and get a separate €500 credit - notwithstanding that it's one child and one tenancy.