Tax Interest and Deduction Issues

Interest on a permanent home loan paid last year can be deducted by 45 percent. You can also get a deduction from the interest on a loan taken out to renovate your home. The bank notifies the taxpayer of the interest, but it is worth checking it.

Household deduction

The popularity of household deduction has grown steadily. The expert admits that the form is quite laborious to fill out, but it is worth following the instructions. It’s best to do it before you get the job done. For example, a deduction cannot be obtained if the company that carried out the work is not included in the advance payment register.

The household deduction can be obtained, for example, from cleaning, childcare, home renovation or the installation of IT equipment that is commissioned at home or in a holiday home. For the estimate tax return you need to know the following examples.

The Examples for Such Taxations

One applicant is trying to get a deduction for shooting and emptying the dirt well, and for the costs of renovating the balcony of the housing company and expanding the cottage. However, these costs are not eligible as they are not deductible.

The other receives a call from the taxpayer because he has recorded the balance of his invoice with travel expenses and materials, even though the deduction is only for work.

One other person will also not receive the deduction, as he will claim it from the renovation costs of his investment home. The household deduction is granted only if the work has been done in your own home or in a home used by your parents.

Earning income

For all wage earners, the taxpayer automatically makes an income tax deduction of € 750. Other costs can be reduced if the criteria are sufficient.

Capital income

For example, rental and dividend income and capital gains are taxed as capital income. The taxpayer compares the previous data with the reported ones.

If changes need to be made to the tax return, some employees and retirees must act no later than Tuesday.

The tax administration recommends making supplements electronically in the tax service. The tax return deadlines for employees and pensioners are divided into three days. You can see from the pre-filled tax return whether your return date is near.

During April, the tax administration sent a pre-filled tax return to 4.9 million people. For the most part, the information on the tax return is already correct and they don’t need to make corrections. Last year, 1.45 million completed a pre-filled tax return. 61 percent of them made supplements online.

You can get help to complete the tax return from the Tax Administration chat. The chat is open on weekdays until the time. The expert also has comprehensive instructions for completing a tax return, including instructions related to the most common deductions.