Son studying away from home? May have tax benefits.

Do you have a child studying far from home? Find out if you can access this tax benefit.

According to information from the Tax Authority, shared by Notícias ao Minuto, if you have a child studying far from home, you may be eligible for tax benefits.

With the month of September, many students are taking on new challenges, moving out of their parents' house to rent a new room/house near the educational establishment. This may bring new expenses to the parents, potentially leading to a more negative outlook on this new phase of life, in a dual sense.  

However, there is an underlying advantage to this change. "Making a lease contract for a displaced student has tax benefits," one can read in the news.  

You can deduct part of this expense in the IRS, that is, deducting 30% of the expenses duly documented with the rents (contract registered with the Tax Authorities and electronic rent receipt or invoice-receipt) from the IRS collection, up to a maximum of 400 euros per year," explains the AT, according to the news.

But know that, to be entitled to this benefit, the student must be under 26 years old, attend an educational establishment integrated in the national education system located at a distance greater than 50km from the permanent residence of the household.

How to access the benefit?

As explained by the Tax and Customs Authority, as read in Notícias ao Minuto, to access the benefit "it is necessary for the landlord to register the contract signed on behalf of the displaced student in the Tax Portal" and "issue proof of receipt of the rent that mentions the rental to the displaced student (rent receipt or invoice-receipt)".

On the other hand, the student must communicate on the Finance Portal the condition of being a displaced student by February 15 of the following year.

It is still necessary to associate "invoices-receipts related to accommodation to the 'Education' sector in e-Fatura whenever the landlord issues this type of document, until February 25 of the following year".

Learn more about this topic in the informative brochure on the Tax Portal at: Taxpayer Support > Useful Information > Information Brochures > IRS.

Continue to follow more similar tips in your inbox by subscribing to the weekly newsletter from Poupança no Minuto.