The 2023 tax return
Spring is financially dominated by income tax returns. By May 1 of this year, you must file your 2023 tax return. The IRS is already filling in as much information as possible for you. It is important to double-check this data to make sure the information is complete. Some expenses you incur are deductible for income tax purposes. By looking carefully at deductions, you can save a lot of money.
In this article we list some important deductions for you. That way you'll be well prepared for your tax return.
Own home
Do you own your own home? Then you can take advantage of various deductions. For example, mortgage interest is usually deductible. The costs associated with taking out a mortgage and purchasing a home - such as advice and notary fees - are also deductible. In addition, the penalty interest when refinancing a mortgage can be entered as a deductible item.
As a homeowner, you have several tax benefits, but these benefits are being adjusted. For example, the maximum mortgage interest deduction is getting lower and lower.
Insurance
Not only your mortgage, but also insurance can be an interesting deduction. You can fully or partially deduct the premium of some insurances from your taxable income. For example, for the self-employed, the premium of disability insurance is deductible. In many cases, you can also take home expense insurance with disability, annuity insurance or a bank savings product as a deductible. This makes it more interesting to take out such insurance.
If such insurance pays out, you do have to pay tax on that amount. How much tax you have to pay depends on the tax bracket in which your income falls.
Lesser-known deductions
In addition to these much-discussed deductions, there are also some lesser-known deductible expenses. For example, you can include certain healthcare expenses as a deduction. In addition, in some cases it is possible to include public transportation travel expenses to work as a deduction.
For a list of all deductions and their conditions, visit the Tax Office site.
The deadline for submitting your tax return is May 1, 2024. If you already fill out the tax form before April 1, 2024, you will be notified before July 1. Otherwise, it will be later.
Preliminary assessment
You've probably also already received a preliminary assessment for 2024 in the mail. This is the amount you have to pay in advance, you can pay this in one lump sum, or make it a monthly amount. Again, check your information and the amounts. A change in your personal situation may affect your provisional assessment. In that case, contact the Tax Office.
