Mortgage Interest Tax Credit
One of the big money-saving measures announced in the most recent Budget was the mortgage interest relief initiative - temporary Mortgage Interest Tax Credit (MITC).
Although it was announced last year, it was only in the last few weeks that people could apply for the relief. Potentially it could see homeowners getting up to €1,250 back in their pockets.
To qualify for this mortgage interest tax credit you must meet certain conditions and claim the credit in your tax return for 2023. However, for anyone on a fixed rate then the bad news is that you cannot apply.
The relief is only available to tracker mortgage holders and those on variable rates and to be eligible you must have an outstanding mortgage balance of between €80,000 and €500,000 at the end of 2022.
The initiative is in place for anyone who has seen their mortgage interest bill for 2023 rise on 2022.
It is worth pointing out too however that anyone who was on a fixed rate and re-fixed at a higher rate in 2023 can also apply.
To be eligible for claiming MICT you have to fulfill the following criteria:
Your mortgage balance needs to be between €80,000 and €500,000 as of December 31, 2022.
Your loan must be with a qualifying lender. A qualifying lender is a lender listed as a credit information provider by the Central Bank of Ireland.
You must have paid interest on the loan in both years 2022 and 2023.
The amount of interest you paid on the loan in 2023 must have increased from what you paid in 2022.
You must comply with your Local Property Tax obligation.
Also, your property needs to meet certain criteria:
The property should be your only residence or your main residence.
The property must be in the State.
The relief extends to residential properties used to support the individual’s trade, profession, employment, or office holding.
The MITC may be available for properties used by a dependant relative, former or separated spouse or civil partner
The value of the relief will be equal to 20 percent of the increased interest paid in 2023 compared to 2022, or €1,250, whichever is the lesser.
To claim the MITC for the 2023 tax year, individuals must file an Income Tax Return by making an income tax return for 2023 using Revenue’s MyAccount or ROS services.
Required documents include Certificates of Mortgage Interest for 2022 and 2023, and confirmation of the mortgage balance as of December 31, 2022. All documents can be uploaded through Revenue’s online services.
Read Revenue’s guide to the MITC for more information about how to claim the credit.