How to request the tax credit for household expenses
The credit may be taken into account in the withholding rate on your tax card for the current year. Alternatively, you can ask for the credit later, notifying the Tax Administration about your expenses either during the year or after you have received your pre-completed tax return next spring.
To file the required details, you need the following information:
the company’s Business ID or individual worker’s personal identity code
the invoice total or the gross wages – if you divide the expenses with your spouse, specify your portion of the invoice or wages
the part of the expenses relating to work, including taxes or social security expenses
Save the receipts for what you've paid for the work done. We may ask you to show them later.
Report the expenses entitling to the credit for 2018
ALTERNATIVE 1: REPORT THE INFORMATION FOR A REVISED TAX CARD
ALTERNATIVE 2: REPORT THE INFORMATION IN YOUR TAX RETURN
You can claim the expenses for a tax credit for household expenses for 2018 in your tax return. You can use MyTax for this purpose already now. If you prefer, you can wait until next spring and claim the expenses after you receive the pre-completed return form.
Alternatively, you can file the information on paper (Forms 14A, 14B and 14C).
How to file information for your tax return on paper
Report the information only once. If you have reported the information for the tax card, or on Palkka.fi, it is transferred to the pre-completed tax return automatically. Check the amounts when you receive the tax return.
You can also file the tax credit details on palkka.fi
If you do not want changes to be made to your tax card, you can alternatively file the expenses entitling you to the tax credit for household expenses in the palkka.fi service (in Finnish and Swedish only). There you can also file any reports and payments relating to wage payment.
You can file tax credit details for 2018 on palkka.fi until 31 December 2018. After that they will be transferred to the pre-completed tax return of 2018. Check the amounts when you receive the tax return.
File tax credit details on palkka.fi (In Finnish and Swedish only)
Frequently Asked Questions
Please check the facts at ytj.fi. You can look up any business entity by its name or Business ID. Type it in the search field.
Always check that the company, business, entrepeneur, etc. is registered in the prepayment register before you make an agreement with them. The business must be registered at the point in time when you make the agreement. If a company is on the register at that time, you will be granted the tax credit for household expenses even if its registration had been terminated by the time when you pay the invoice.
However, if registration is not valid at all, you cannot be entitled to the credit.
A common-law spouse can get the credit even when (s)he is not an owner of the apartment. A valid justification is that the spouse lives in the apartment and has paid expenses that entitle to the tax credit.
A child living at home may also be granted the credit if (s)he has income and has paid expenses entitling to the credit.
The credit is specific for the calendar year.
It is granted for the year when you pay the invoice to the company or pay your directly hired worker’s wages and social security expenses. If, for example, renovations are made at the turn of the year, you may request the credit in two tax years – depending on when you pay the related invoices. The personal liability portion will be subtracted in both years.
You can request the credit to be taken into account in the calculation of your withholding rate on your tax card for the current year or, alternatively, you can request the credit at a later date when you submit your tax return.
The tax credit for household expenses is deducted primarily from the tax on earned income and capital income. Most other deductions are deducted from the taxpayer’s earned income before tax is calculated, so the deduction effect is weaker than in the case of the tax credit for household expenses.
If the tax credit for household expenses is greater than the taxpayer’s total taxes, the exceeding portion cannot be carried over to the next year.
You cannot be granted the tax credit for household expenses if, for the same purpose, you have received
- a dependent care allowance
- a child home care allowance
- a private care allowance
- financial support for renovations from State funds or from funds of another public body (however, support for heating system conversion has no effect on your eligibility for the tax credit)
- a voucher for social and health care services granted by your municipality
- a pay subsidy for a household acting as the employer.
If you notice afterwards that you could have received the tax credit for household expenses, you may claim it even after the statutory tax assessment period has ended. Request a change by filing a claim for adjustment.
The credit is personal, so you and your spouse together may get a credit of €4,800.
You can agree between yourselves how to divide the credit. The credit will be granted in the tax assessment based on your request. The personal liability portion is first subtracted from both of you. If the expenses do not exceed the €2,400 threshold, it is advisable that only one of you should request the credit. This way, the personal liability portion will be subtracted only once.