June 22, 2024
Best Ideas for the Tax Return Options

It is a good idea to review the annual income limit of the tax card now at the latest, so that the rest of the year’s income is not taxed at an additional percentage. According to the tax administration, it is estimated that as many as one in three employees’ tax cards are currently under-taxed. The annual income limit of the tax card has been calculated according to the income of previous years. Do not forget to have the s corp taxes calculator used there.

The Best Ideas

It is a good idea to review your own annual income limit, especially if there has been a clear change in your own salary income or deductions from income.

This is the first year when Finns have only one income limit on the tax card for the whole year. There are no longer income-specific income limits, ie monthly income limits, in the tax card. It is therefore particularly important that employees monitor the development of their own annual income and, if necessary, draw up a change tax card.

Best Ideas for the Tax Return Options

Calculate And Pre-Estimate The Following Information When Ordering A New Tax Card:

  • Estimate your earnings for the entire calendar year. Break down wage income, pensions and benefits (benefits include unemployment and maternity allowances and home care allowance).
  • How much salary and other income have you received at the beginning of the year? Income data is required gross (i.e., taxes have not been deducted from the amount).
  • How much of your salary and other income has been taxed in euros (information can be found, for example, in the salary statement you received from your employer).
  • How much will you get in salary and other income at the end of the year.

What it Includes

Earned income includes, for example, wages and salaries and similar income, pensions and social benefits, grants and benefits. Taxation of earned income is progressive in Finland, which means that those who earn more also pay more taxes on their income. Taxation of earned income can now be easily monitored on the Tax Administration’s website in the tax service. The service can also check how much you can get a tax refund or have to pay residual tax , in addition to which it is possible to file a tax return on earned income. In Finland, municipal income and state income tax are paid on earned income.

The Right Taxation Options

The taxation of earned income works in such a way that all earned income received during the year is added together and the costs incurred in obtaining and maintaining the income are deducted from the amount. These deductions are called natural deductions, in addition to which deductions can be made from taxation in respect of business travel expenses, trade union membership fees, unemployment fund contributions and compulsory pension insurance. There are other tax deductions that are stated on the tax return.

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