SKAT opens up for the preliminary income statement on the 18th of November. Especially this year, you need to pay attention, as last year's tax debt of over 7 billion kr. is the highest level in 10 years. This is primarily due to the changes that corona has brought about in the Danes' tax deductions. Corona has affected all the 1,2 mil. danes who normally drive to work.
A study from Tax Helper finds that as many as 50% of Danes did not update their driving deduction on the preliminary income statement last year. And it's not just the driving deduction that needs to be taken into consideration. For example, the carpenter deduction, which deals with green renovations, cleaning, gardening, etc., will be reduced by 30.700 kr. in 2022. Only 13% of Danes are aware of this according to the same study.
Here are the 5 key points to avoid tax debt in 2022
1. Interest on your mortgage
About 250,000 homeowners have changed homes during 2021 according to figures from Boligsiden, and thus many face new interest rates on their mortgages and bank loans. These interest rates are particularly important to update, as a 6.000 kr. higher deduction can result in a tax debt of almost 2.000 kr.
2. Driving to work
As mentioned above, a third of Danes stick with working at least one day from home even after corona. That's why it's important for the 1,2 mil. danes with driving deductions to update their preliminary income statement. For example, if you work from home 2 days a week and have 40 km to work, it can result in a tax debt of almost 3.000 kr. if you do not get it updated.
3. Changed or lost your job
Some industries have had to lay off many employees during corona while others lack manpower. So if you have either changed jobs or stopped in your old job in 2021, it is important to correct your expected salary. If you want to be on the safe side, check out our tips for setting your income at the bottom of the article.
4. Deductions for craftsmen are reduced by 30.700 kr.
The construction industry has been hot during corona, where everyone has had more time to renovate the home. However, if you plan renovations in 2022, you should be aware that the craftsman deduction has been lowered from 50.000 kr. to 19.300 kr.
5. Renting out of accommodation, car, etc.
If you plan to rent out a home or car now that the world is starting to open up, then it may be a good idea to put your expectations into the preliminary income statement. Then you can start the tax year ahead 1-0 and have much better opportunity to avoid tax debt.
You can't just lower your expected income to avoid tax avoidance
If you want to be even safer in avoiding a tax debt, then you can also adjust your income. But it's far from everyone who should set it lower than they expect:
If you earn less than 32.500 kr. a month, you should set your income lower than expected to avoid tax evasion. This is because your "employment deduction" (the deduction automatically deducted from income) will thus be reduced.
If you earn between 32.500 kr. and 50.000 kr. a month, then it does not matter if you raise or lower your expected income. The tax is adjusted automatically.
If, on the other hand, you earn more than 50.000 kr. a month, you should rather set your income a little too high if you want to avoid tax debt. That's because you pay the highest tax rate and thus will pay a little more tax during the year than necessary.
Did you get your deductions for 2018, 2019 and 2020?
If you haven't gotten your deductions for all 3 years yet, then it's still possible to do so: