Tax credit for household expenses in 2021: report for tax card

  1. Select Tax returns and tax information under Activities.

  2. Select the year 2021. Then click on Tax credit for household expenses.

  3. If you also want to request a new tax card where the credit for household expenses has already been considered in the tax rate, select Request a new tax card. (See the instructions: Ordering a tax card in MyTax)

  4. If you have filed a credit for household expenses previously for your tax card or tax return, you can see it in the Pre-completed income and deductions section.

    If you have no credit for household expenses in Pre-completed income and deductions, proceed to Other deductions. You can file the household expenses by clicking Add a new expense.

     

  5. Next, select whether you have bought the work from a company or hired an employee.

    If the work was done abroad, attach a certificate of tax compliance for foreign businesses (Form 14C) to the return.

  6. a) If the work was done by a company, enter the following details:

    • Enter the work for which you claim the credit in “Type of work”. See which types of work entitle you to the credit.
    • Fill in the section “Place where the work was done”. You can get the credit if the dwelling or leisure property where the work was done is in your personal use, or in use by your parents or grandparents, or the parents or grandparents of your spouse or deceased spouse. 
    • Describe the work done under “Give a more detailed description of the work that was done” (for example weekly cleaning, child care, kitchen renovation). 
    • Enter the date when you made a contract on the work with the company in “Contract date”. If no written contract was made, enter the date when you ordered the work.
    • Also enter the date when you first paid trade income to the company during the year. If you have paid trade income multiple times to the same company, also enter the last payment date of the year.
    • You can get credit for the part of the expenses charged for the work itself, but not for other costs (such as tool or travel expenses). Because of this, the company that did the work must also include in the invoice a specification of the expenses that do not count towards the tax credit for household expenses. If the work-related part is not specified in the invoice, ask the company that did the work for more information.
    • Enter the sum total of the invoice you paid in “Total amount paid, including VAT”. Enter the amount charged for work itself in “Work’s share of the amount paid, including VAT”. Do not subtract the credit threshold. The Tax Administration calculates the credit and subtracts the threshold amount from it on your behalf.

    b) If you have hired an employee, enter the following details:

    • Enter the work for which you claim the credit in “Type of work”. See the types of work that entitle you to the credit.
    • Fill in “Place where the work was done”. You can get the credit if the dwelling or leisure property where the work was done is in your personal use, or in use by your parents or grandparents, or the parents or grandparents of your spouse or deceased spouse.
    • Describe the work done under “Give a more detailed description of the work that was done” (for example weekly cleaning, child care, kitchen renovation).
    • Enter the date when you paid wages to your employee for the first time during the year in “First payment date”. If you have paid wages to the same employee in multiple instalments, also enter the last payment date in the year.
    • Enter the gross wages you have paid, including fringe benefits, in “Total wages paid”. Do not add travel expenses or other expense allowances to the amount, because they are not counted towards the credit for household expenses.
    • Also enter the total amount of employer’s contributions you have paid:
      • the employer's health insurance contribution
      • employer's share of mandatory pension insurance contribution
      • employer's share of unemployment insurance contribution
      • accident insurance contribution
      • group life insurance contribution.

    The employee's share of pension insurance contributions and unemployment insurance contributions is not counted towards the credit.

    Do not subtract the credit threshold. The Tax Administration calculates the credit and subtracts the threshold amount from it on your behalf.

    If you file the information on paper, use Form 14B (Tax credit for wages paid to a household employee).

  7. If you have divided the expenses with someone else, such as your spouse, enter your portion of the amount you entered in the section “Work’s share of the amount paid, including VAT”. 

    Example: You and your spouse have ordered renovation work for your kitchen. You want to divide the tax credit for household expenses between yourselves. The sum total of the invoice is €12,000. The amount charged for work is €5,000. 

    Both of you must enter €12,000 in your tax return section “Total amount paid, including VAT” and €5,000 in the section “Work’s share of the amount paid, including VAT”. Both must enter €2,500 for “Your share of the work expenses”.

  8. Finally, give your assurance that you have not received any of the mentioned financial support for the work.

    After you have entered all the details, click OK.

    If you are filing on paper, remember to include your signature on the form.

  9. After you have entered all the amounts that entitle you to the credit for household expenses, proceed to the stage Delivery method.

  10. Select the date when you want the tax card to become valid and the delivery method.

    You can choose to have your tax card delivered directly to your employer’s address. You will always get your tax card in MyTax. If you wish, you can also have it delivered to your home.

    Proceed to the next stage, Preview and send.

  11. Recheck all the information. If you find any errors, correct them before submitting the request. Click Edit to make corrections.

  12. If everything is correct, click Submit. You will receive an acknowledgement of receipt from us.

    The new tax card will be delivered to the recipient of your choice. The tax card details are always available in MyTax.