This year’s pre-filled tax returns have now been made available by Finland’s Tax Administration, and the deadline for corrections falls in May.
Taxpayers should always check the data on the pre-completed tax return and add any missing income or deductions, according to Kaija Selkäinaho from the Finnish Tax Administration.
Especially those who have worked remotely during the pandemic will want to check for work-related tax deductions, such as monthly transit pass costs or home office costs, Selkäinaho added.
Home office deduction
Generally, the calculation of a home office deduction is formula-based, covering workspace rent, furniture, illumination, electricity, heat and cleaning. If you apply for a formula-based home office deduction, you cannot apply separately for deductions on office furniture or other equipment, as these are already included.
Deductible amounts depend on the duration of remote work.
Those who worked remotely for over 50 percent of their time last year receive a 920 euro tax deduction. However, if the amount worked remotely was less than 50 percent, or workers used the home office to produce occasional secondary income, the deduction is smaller.
Hybrid workers may miss out
Kati Malinen from the Taxpayers Association of Finland (TAF) said that hybrid workers should carefully check if they qualify for the deductions listed in their pre-filled tax return, especially if the amount of days they worked remotely fluctuated.
"For example, if the pre-filed tax return has the full 920 euro home office deduction listed, but you worked remotely for no more than 50 percent of the time, you’ll only qualify for the smaller, 460 euro deduction," Malinen said.
Additionally, wage income earners in Finland will automatically receive a 750 euro deduction in their pre-filled tax returns to cover work-related costs, such as transit and home office equipment.
If you have a wage income, you will only gain a benefit if you have other deductions to make relating to work-related expenses that exceed that amount, Malinen added.
Tax credit for household expenses increases
In a two-year trial, the amount of tax credit that can be claimed for household expenses in 2022 and 2023 increases.
In 2022, the maximum credit available for household expenses will be 2,250 euros per person, or 4,500 euros if there are two adults in the household, for renovation expenses and 3,500 euros per person for household work, including nursing and care, as well as the replacement of oil heating.
If you apply for the household deduction now for work done during 2022 to replace oil heating systems, or for household, care and nursing work, the increased deduction will automatically be reflected on your tax card, says Selkäinaho from the Finnish Tax Administration.
Edit Note added 12.4.2022 at 12.24pm to clarify that renovation and household work amounts are per person.