Eight essential components: This refers to the tax filing process.
Missing out on potential tax reductions can mean losing out on significant savings. Here's a rundown to help you avoid overlooked tax deductions.
Are you yet to submit your 2023 tax return? You've got until September 2 to get it done. With little time left to collect all necessary documents and input the data, avoiding last-minute oversights is crucial. To assist you, we've compiled eight commonly overlooked deductions, suggested by the tax application, Taxfix.
1. Domestic help and household services
If you've employed assistance, such as cleaners, chefs, or caregivers, you may be eligible to reclaim a portion of the costs. The tax office recognizes 20% of these expenses, up to an annual maximum of 4,000 euros. Handyman services, including repair or renovation work, are also eligible for a 20% deduction, up to a yearly maximum of 1,200 euros. These details should be entered in the "Annex Household-Related Expenses".
2. Medical expenses
If your health insurance doesn't cover doctor visits, medications, glasses, dental care, prescribed therapies, or rehabilitation, you can also claim these expenses. However, they must exceed the so-called reasonable burden limit. These details should be entered in the "Annex Special Burdens".
3. Transport costs, carpooling, commuting allowance
Employees can deduct their commuting expenses, from the very first kilometer, from their taxes, regardless of the mode of transportation. However, in the case of carpooling, only the driver is eligible for the allowance. These details should be entered in the "Annex N".
4. Work equipment, home office expenses, mobile phone contract
Costs associated with work equipment, such as laptops, office supplies, and specialist literature, can also be declared in "Annex N". Employees who work from home can claim a daily flat rate of 6 euros for up to 210 working days. Additionally, 20% of the monthly costs for telephone, mobile phone, and internet can be deducted.
5. Charitable donations and church tax
Those who donate to charitable organizations or pay church tax can also claim these expenses. These details should be entered in the "Annex Special Expenses".
6. Education and further training costs, professional literature
Investment in professional development, such as specialist books, seminars, and further education, can also be declared as business expenses. They go in the "Annex N".
7. Special burdens
Tax benefits may also be obtained from costs related to caring for relatives, funeral expenses, or costs associated with disabilities. If these costs are medically justified and privately paid, they should be entered in the "Annex Special Burdens".
8. Tax return assistance costs
Those who seek assistance with their tax return, such as from a tax assistance association, tax advisor, or tax software, can deduct up to 100 euros of the related costs. Higher costs, if they are business-related, can always be claimed. These details should be entered in the "Annex N".
Given the text provided, here are the two sentences that contain the phrase 'Income tax' and follow from the context:
- Make sure to include all eligible deductions, such as domestic help and household services, to reduce your income tax liability.
- Don't forget to declare your charitable donations and church tax payments, as they can also help lower your income tax burden.
