14B Tax credit for domestic costs, paid to an employee ‒ Instructions

Use this form if you are claiming tax credit for domestic costs on the basis on having employed someone. There is enough space for two itemisations of such payments on this form. If you have made payments to more than two employees, use separate copies of Form 14B to itemise the payments. 

You can provide the information either in MyTax or on a paper form. The form and further information are available on the Forms page. The return address is marked on the first page of the form.

If you have made payments to a self-employed person, a company or a non-profit organisation, use Form 14A  (Tax credit for domestic costs, work performed by company).

Tax credit can be taken into account on your tax card

You can have the tax credit entered on your tax card during the same tax year the work entitling you to the tax credit for domestic costs is performed. It will be taken into account in the withholding rate rather than in the final tax assessment. Tax credit for domestic costs is deducted from tax, i.e. it directly reduces the amount of taxes you must pay.

Submit the relevant information for your tax card at MyTax (vero.fi/omavero). You will not then need to fill in this form. You can, however, also apply for a change to your tax card by filling in the paper form, 5010e (Application for prepayment and/or for change in withholding tax percentage). In that case, enclose this form with the application.

Tax credit for domestic costs you have claimed is transferred to your pre-completed tax return automatically.

You can also apply for tax credit retrospectively

You can also claim tax credit for domestic costs later, when you fill in the pre-completed tax return. In that case, provide the information in MyTax or return this form by the date indicated on the pre-completed tax return. If you have paid the invoice through Palkka.fi, the amount of the tax credit is transferred from the system to your pre-completed tax return. If the information in your tax return is correct, you do not need to do anything.

This form can also be used to submit a claim for adjustment of a tax credit for domestic costs after the tax assessment has ended. Fill in a claim for adjustment and attach this form to the claim. Claims for adjustment, too, can be made in MyTax.

If you are claiming a tax adjustment or you are correcting information you have already provided, complete each of the sections concerning the work performed in question.

Prerequisites for tax credit for domestic costs

Tax credit for domestic costs is granted for ordinary household work, daycare and caregiving work. Read more about the type of work entitling you to the tax credit.

The condition for tax credit for domestic costs also requires that the work has been performed in a residential house/apartment or leisure house used by you or by specific close relatives, such as parents or grandparents. The type of relationship required in order to claim the tax credit is described in more detail in section 2 of these instructions.

You get the tax credit for domestic costs for the year in which you paid the wages. You can deduct 20% of the of the wages (15% starting in tax year 2020). You can also deduct any indirect wage expenses in their entirety. The own-liability threshold is €100. The maximum tax credit for domestic costs is €2,400 (€2,250 starting in tax year 2020) per person and per year.

Tax credit for domestic costs is granted only for work performed by an outside entity or employee. You cannot receive tax credit if you have performed the work yourself or if the work has been performed by someone living in the same household with you. Tax credit cannot be given for costs reimbursed by an insurance company.

Tax credit for domestic costs can be shared with a spouse

You and your spouse can share the tax credit by filling out a separate Form 14A/14B each to show the split. The tax office will grant the credit according to the proportions shown on the spouses’ completed form. Taxpayers should submit Form 14A/14B before the close of tax assessment for the taxable year. If one spouse does not have enough assessed taxes against which to grant the credit, it will be transferred to the other spouse. An own-liability threshold of €100 is separately in force for each spouse.

Read more about the obligations involved in employing someone to work for a household.

1 Taxpayer identification and the tax year

Enter your name and personal identity code. Give the tax year, i.e. the year for which you are claiming the tax credit for domestic costs.

2 Description of work performed

Specify the work on the basis of which you are claiming the tax credit. Describe the work in the section “Further explanation of the work performed”. Indicate the type of work involved, e.g. weekly cleaning of rooms, children’s daycare or the raking of leaves.

Tick the box indicating in whose use the residential house/apartment or leisure house has been: yourself or your parents or relatives. You can receive the tax credit if you use the residential house/apartment yourself, or if it is used by your or your spouse’s parents or grandparents or your deceased spouse’s parents or grandparents. Adoptive parents and foster parents are considered comparable to parents, and other relatives are considered comparable to grandparents in the ascending line (e.g. great-grandparents). The user can also be the spouse of a relative of this type.

2.1 Enter the name and personal identity code of the employee.

2.2 and 2.3 Indicate the first date of payment during the tax year in section 2.2. If you have paid the same employee wages in multiple instalments during the tax year, also indicate the last date of payment in 2.3.

2.4 Enter the total gross wages paid, including fringe benefits. This amount should not include costs for travel or other reimbursements of costs, as tax credit is not granted for them.

2.5 Indicate the total amount of social security costs:

• employer’s health insurance contribution
• employer’s share of the compulsory earnings-related pension contribution
• employer’s share of the unemployment insurance premium
• accident insurance premium
• group life insurance premium.

The employee’s share of the compulsory earnings-related pension contribution and the unemployment insurance premium does not entitle to the tax credit.

Indicate wages and social security costs in full, without subtracting the own-liability threshold. The Tax Administration will calculate the tax credit and subtract the own-liability threshold automatically.

2.6 and 2.7 If you have shared the costs, e.g. with your spouse, indicate in 2.6 your share of the gross wages paid to the employee and in 2.7 your share of the social security costs in euros.

Received public subsidies

If you have received any public support or subsidies for the work in your household, as specified herein, you will not be entitled to the tax credit.

Date and sign the form. Also give your daytime telephone number.