Tax Return on the Web (tax.fi/taxreturn)
Tax deductions - Deductions you must claim
Not all tax-deductible expenses are automatically recorded in your file, so you must claim deductions for them yourself.
Commuting expenses not deducted directly from your taxes
When we assess your income taxes, we can give you a deduction for commuting expenses – i.e. your daily travelling from home to work – but please note that this is a deduction affecting your total taxable income, so it doesn't reduce your taxes directly.
For example, if your total expenses amount to €2,000, it does not mean that you would get a tax refund of €2,000. It only means that the taxable part of your total income becomes smaller: the threshold for the deduction is 750 euros, and the maximum allowable deduction is 7,000 euros.
If you have applied for a tax card and let us know how much you pay in commuting expenses when you filled in the application form, the amount will be pre-printed on your Pre-completed tax return. In this case, you should check it and make corrections if you find any errors.
Household expenses – tax credit after the threshold of €100
The tax credit for domestic help or household expenses (kotitalousvähennys; hushållsavdrag) can reduce your taxes directly. Your own liability is €100, and the maximum credit is €2,400 per person. You get it during the year when you have paid an invoice to a service-provider company or paid wages to someone you have employed.
If you have made use of the www.palkka.fi website when reporting household expenses to authorities, the data system transfers the amounts to your Pre-completed tax return automatically.
More information on the tax credit for domestic expenses (in Finnish and Swedish).
Maximum €1,400 of deductions for reduced capacity to pay taxes
This is a special deduction that only concerns earned income. Each case is decided separately. It may be granted if certain circumstances arise such as illness, unemployment or child maintenance obligations. The maximum amount is €1,400.
The calculation for the tax-card withholding rate cannot include the details about this deduction, because it is granted on the basis of actual incomeand circumstances during the entire tax year (including the income received by your spouse). For this reason, you cannot claim it in advance, i.e. not until you complete your tax return for the year.
High health and medical costs qualify for deduction under the following two conditions:
- Annual costs reach €700 for the taxpayer and family, and
- They also reach 10% of the annual adjusted gross income (including both earned and capital income, net of any deductions for the production of income).
More information on the special tax deduction for a reduced capacity to pay taxes(in Finnish and Swedish).
Expenses for the production of income – a deduction from your wage income
There is a standard deduction of €750 for work-related expenses, granted to all wage earners automatically. If you pay more than €750 per year, itemize your expenses on your tax return, bearing in mind that they must be related to the production of the income you receive as wages or salary.
For example, you may have tax-deductible expenses for having a workspace or office, for buying books etc. relating to your occupation or profession, for a computer, and for meals in a line of work considered to be one of the special sectors.
More information on the deductibility of expenses for the production of income (in Finnish and Swedish).
The automatic deduction (€750) is not inclusive of your commuting, trade union, and unemployment fund membership expenses, because each of these categories is deducted separately.
Deduction for temporary accommodation in another district because of your work
If you are eligible to receive this deduction, it is deducted against your earned income and what you pay is considered an expense for the production of income. The maximum deduction is €250 per month, and if your actual rental cost per month is less than €250, the maximum is the actual cost. Only one of two spouses can claim the deduction.
Temporary accommodation expenses qualify for deduction if all the following conditions are fulfilled:
- you have arranged for a temporary place to live for yourself because your work is located too far away from where you live permanently
- it is a rented dwelling, an employer-provided dwelling, or a dwelling with a right-of-occupancy status (if you have bought a dwelling for temporary accommodation, you cannot have the deduction)
- if you have a family, you are having a permanent home and the temporary accommodation at the same time, and the permanent home is where you normally live together with your spouse and/or child(ren) under 18 years of age
- if you don't have a family, you have two main jobs at the same time, and because of their being located far away from one another, you have arranged for temporary accommodation. In this case, you have two dwellings, one of them being permanent and the other – a temporary dwelling in another district because of your work
- your main place of work is located more than 100 kilometres away from your permanent home
- your temporary accommodation is located more than 100 kilometres away from your permanent home.
More information on this deduction (in Finnish and Swedish).
Deductions offered to forestry workers
You can deduct 30% of the wages paid to you for forestry work if you use your own chain saw (or brush saw) at work. You can claim 40% of deduction when filling in your tax return form. This deduction is additional to a separately paid compensation for using a chain saw.
If what you are paid for forestry work makes up at least a third (⅓) of your annual income, you can additionally deduct 5% as a standard deduction in forestry (metsurivähennys; skogsarbetaravdrag), maximally €240.
These deductions concern the earned income of forestry workers, and are granted them to compensate for their expenses for the production of income.
More information (in Finnish and Swedish).
Tax credit for child maintenance – maximum €80 per child
You may get this credit if you pay maintenance because of a court-endorsed agreement or decision. It amounts to one-eight (⅛) of the maintenance expense, but the maximum is €80 per year and per child under 18. If your tax card already includes a calculation of the maintenance expense you must pay, the data system transfers it to your Pre-completed tax return automatically. It is deducted from your taxes directly.
More information on the tax credit for child maintenance (in Finnish and Swedish).
Income spreading agreements
You can demand that your income be spread over more than one tax years is you have received at least €2,500 in earned income as a single payment, which has accrued retroactively or otherwise to reflect at least two earning years, and it makes up at least a fourth (1/4) of the total of your taxable earned income for the year. The spreading calculation results in a tax credit, deducted directly from your taxes.
Requests for income spreading must be made before the end of the tax-assessment process for the year when the amount was paid to you.
Example: An employer pays you a lump sum in 2016 that qualifies for income spreading. You must ask for the tax authority to make an income spreading agreement before the 2016 tax assessment is over, in other words, by 31 October 2017.
More information on income spreading (in Finnish and Swedish).
If you have an agreement in force for income spreading, it can be put on your tax card so as to reduce your withholding rate. This requires that you either visit the tax office or send all the necessary documentation for a calculation for a revised tax card. No income spreading calculations can be made via our Telephone Service or Tax Card Online.
Revised tax card for taking an income spreading agreement into account (in Finnish and Swedish).
Deduction for donations to institutions of higher education
Individuals or estates of deceased persons may deduct a donation they make to a university or other institution of higher education. The deduction applies to earned income. It is required that the donation be made for the purpose of furthering sciences and arts. To be deductible, the minimum donation is €850 and maximum €500,000.