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If you receive wages, you always need a tax card. If you do not have a tax card, your employer must withhold 60% of your wages as taxes. In comparison, the tax rate in your tax card for wages is usually 0% if you earn less than €10,000 a year. Note that your employer needs your tax card information even if your tax rate is 0%.
Ask your supervisor at the summer job how you should deliver your tax card details. Some employers receive tax card details directly from the Tax Administration, whereas others expect you to present your tax card to them yourself. Your employer will let you know what to do. Note that the employer will need your tax card well in advance before the first payday.
In addition to taxes, the employer will withhold insurance contributions from your wages.
A housing allowance is a tax-exempt benefit. This means that it is not subject to tax, so it does not affect your tax card’s income ceiling or tax rate.
Financial aid for students includes a study grant paid for the months during which you are entitled to the aid and a government guarantee for the student loan, for example.
The study grant is taxable income and can affect your tax card’s withholding rate.
If you want to make changes to your tax card, you will need an estimate of the study grant amount you receive during the year.
Read more about the study grant on Kela’s website.
The student loan is not subject to tax, so it does not affect the tax card’s income ceiling.
The tax rate indicated in the tax card shows how much tax you will pay on your wages. The tax card is valid for the entire year or until you request a new tax card.
If your income or deductions change, your tax rate may be too high or too low. In that case, you may want to change your tax card. You can change your tax card as many times as necessary.
At the end of the year, the Tax Administration collects your tax information from your tax card and other sources and prepares a pre-completed tax return for you. Check the tax return details and make any corrections needed.
Based on your pre-completed tax return and the corrections you have made to it, the Tax Administration calculates the total amount of your taxes and charges. If your tax rate has been too high, it means that you have paid too much tax and will get a tax refund. If your tax rate has been too low, you will have to pay back taxes.
Submit your bank account number in MyTax. The account number will be needed if you receive a tax refund. See the instructions for submitting your bank account number.