The household deduction is €2,400 for the 2019 tax year. Remember to report! The tax authorities will deduct the amount directly from your taxes. The deadlines for filing your tax return are 5.5., 12.5. or 19.5.
What is the household allowance?
When you buy services for your home or holiday home, you can deduct part of the cost as a household allowance. You can get a deduction for ordinary household, care and maintenance work, maintenance and renovation work, and IT installation and consultancy services.
How to apply for the household allowance?
You must apply for the household allowance yourself. Work done and remuneration paid or wages and salary incidental expenses must be declared for tax purposes either online via Omavero or by post, for example on form 14A (household deduction for remuneration paid to a business). You can already submit information on the 2019 household tax deduction in Omavoto now.
The taxpayer makes a deduction directly from the tax. The deadlines for the 2019 tax return are in May 2020.
Check your tax return
You should always check your pre-completed tax return and claim a household allowance if the information is missing from your tax return.
The deduction is usually granted for the tax year in which the remuneration or salary and incidental expenses are paid.
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Amount of the household allowance
The deduction is calculated on the price subject to VAT. You can only deduct the proportion of the work, not, for example, the materials. For 2019, you can deduct 50% of the remuneration you pay to a self-employed person or company registered in the pre-tax register or 15% of the salary you pay, plus incidental expenses. The deduction is subject to an annual deductible of €100.
The maximum deduction of €2,400 is available if the total amount of work you buy from the company is €5,000 [(5,000 x 50 %) - 100) = €2,400].
Spouses can get a total deduction of €4,500
For spouses, the deduction is granted when they have requested it. If the limit of €2 400 is not exceeded, it is advisable to claim the deduction for one spouse only. This way, the deductible is only deducted once. If the amount claimed exceeds the maximum, the authority will automatically deduct the amount not deducted from the taxes of the other spouse. Spouses can get a total deduction of €4 500. If only one has taxes, the deduction can be made from the taxes of the spouse who has them.
Work qualifying for the household allowance:
Housework:
cleaning
a visit to the shop,
cooking,
lawn mowing
lumen creation
catering for house parties
Note! However, work such as interior design or emptying a cesspit does not qualify for the deduction.
Ordinary care and nursing work:
Ordinary care work is work that is normally done at home, such as looking after children or the elderly at home.
Note! The work of a hairdresser, barber, beautician or similar person, even if it is exceptionally carried out in the person's home, is not regarded as usual care and nursing work at home. In addition, no deduction is made for health care or nursing care provided in the home by a trained nurse or other health professional.
Maintenance and renovation works:
renovating your kitchen, bathroom or other rooms,
renovation of sauna and basement rooms,
painting of buildings,
installation of balcony glazing,
plumbing and electrical work, and
replacing, upgrading and repairing heating systems
Note! You can also get a household allowance for maintenance work on your property. This includes, for example, maintenance of the oil burner in the boiler, boiler cleaning, boiler efficiency measurement and cleaning, measuring, adjusting and servicing of ventilation equipment. However, you will not get a deduction for fumigation.
Note! The installation and repair of household appliances, such as refrigerators or dishwashers, is not considered deductible maintenance work unless it is carried out in connection with a major repair.
Note! New construction and all similar construction does not qualify for the household credit. For the purposes of the household allowance, construction comparable to new construction includes, but is not limited to, extensions and change of use. The construction of a barbecue shelter or a playhouse is also considered as new construction and therefore does not qualify for the household allowance. However, the construction of an unroofed structure, such as a patio, pier or fence, on a pre-existing building is not considered new construction. The question of interpretation is when a new building ceases to be new.
In a housing company, a resident can only receive a household deduction for maintenance and basic repairs that are the responsibility of the shareholder under the Housing Company Act or the Articles of Association and which have not been transferred to the company by a decision of the general meeting. The mere decision of the general meeting or the company's practice does not allow a household deduction for work costs that are the responsibility of the company.
IT service:
installation and repair of a digital device or antenna,
installing and repairing a computer or peripheral device,
commissioning and installation of telecommunications connections,
installing security services, purchased software and purchased updates on the IT device
in-home instruction on information and communication equipment and connections in the home
Make sure the deductions are made!
Article by Lawyer Tuula Rainto, Amos Law Firm. You can always call him free of charge on 010 299 5090. You can consult our price list Here
[avatar user=”amoslaki” size=”352″ align=”left” link=”https://amoslaki.fi/ajanvarauskalenteri/” target=”_blank” ]Attorney Tuula Rainto, Amos Attorneys at Law. You can always call her free of charge, tel.010 299 5090[/avatar]