5 reasons why you should use tax deductions

In March/April you will receive your pre-completed tax return for 2020 from the Finnish tax authority. As usually it says that if there is no need for corrections or additions (f.ex. tax deductions) in your return, you do not have to do anything. If on the other hand you want to make corrections, there is a deadline in May. 

You probably would like to make changes to your tax return, because you feel you miss something if you don’t. The problem is just that you don’t know what corrections or additions you might be entitled to do. Many seem to feel the Finnish tax authorities’ instructions and forms are too difficult to understand. Probably the problem is nobody ever took the time to explain to you what possibilities you actually have to influence taxation every year.

Obviously everybody ought to know the basics and how one can affect taxes in Finland. Like you, we have been frustrated with tax returns, but working as finance professionals helped to learn the essential. The crucial lesson concerning taxation in Finland has been: make use of available deductions and save taxes!

Why should you learn to use tax deductions?

When it comes to taxes on your wage income it’s basically all about knowing what tax deductions exist and to use them correctly. There’s five good reasons to learn a minimum on how and in which cases you can profit from them:

• The rules regarding tax deductions are not difficult and you basically just need to get familiar with them once. You will find everything you need here. Start with the eBook visible when scrolling down.
• Know the special effect of your marginal tax rate: your tax savings on earned income will be a lot bigger than you think.
• You can apply your tax deductions already on your current tax card and start saving with your next paycheck.
• Use your tax knowledge also to help your partner or spouse and make them save as well.
• Apply your deductions in all future tax returns and save money every year! (You can even claim deductions on income earned back in 2018 retrospectively) 

Please see our post regarding potential tax deductions in connection with Covid here.