The tax return is a must in Switzerland year after year. Every adult resident in Switzerland is required to file a tax return. It is a troublesome subject, but it can also be useful, because you can get money back. You can do this if you deduct various expenses for tax purposes. It is important that you know what you can claim for tax purposes and up to what amount this is possible. In the individual cantons, the regulations may differ in detail. This also applies if you file your tax return online.
Making insurance premiums tax deductible
Insurance makes sense, as it protects against high costs in the event of a claim. You can declare various insurance premiums in your tax return. However, this is not possible with all insurances.
Health insurance and medical treatments are tax deductible
Nothing works without health insurance. Therefore, you can also deduct insurance premiums for tax purposes. A tax claim for health insurance premiums is possible after deducting the premium reduction and any reimbursements.
Not all costs are covered by your health insurance plan. Treatments or remedies that do not comply with the insurance conditions will not be reimbursed to you by the health insurance company. This also applies if you have a high health insurance deductible. The costs that you had to pay yourself, you indicate in your tax return. However, it is important that the treatments or remedies are medically recognized. Otherwise they cannot be deducted for tax purposes. You cannot claim cosmetically based treatments on your tax return. Also deductible are the cost of eyeglasses, contact lenses, dentures, dentists and licensed natural healers.
Pay attention to the deductible in health insurance. It is high in many cases, so you can only deduct for tax purposes the costs you pay that exceed the deductible. The deductible is five percent of your net income in most cantons. There is no deductible in the canton of Baselland. You can claim the entire cost there for tax purposes. The deductible in the canton of Schwyz is less than three percent. In the cantons of Valais, Glarus and St. Gallen's deductible is two percent of your net income.
What you should look for in private pension plans
You can also deduct contributions to accident insurance, life insurance and pension funds for tax purposes, as they are considered private pension plans.
If you are self-employed, you can pay into pillar 3a as a tied pension plan and deduct up to 20 percent of your net income for tax purposes. Note the maximum amount, which is quite low even if the contributions were paid into the pension fund through the employer. For other contributors, the maximum amount is higher. There are differences between cantons here as well. To be able to declare your contributions on your tax return, you will need a confirmation from the institution you are depositing with.
So that your AHV pension is not reduced, you can pay missing AHV contributions in arrears. There are several reasons for premium gaps:
- Frequent change of employer
- Study
- prolonged stay abroad
- Receiving daily benefits from an insurance company due to illness or accident
You can make subsequent payments for a period of up to five years and declare them in your tax return. You are required to provide proof if your employer withheld money from you for OASI contributions but did not pay it in. The missing contributions will be credited to you if you can prove that you worked during this time.
If you buy into a pension fund, these costs are also tax deductible. The amount you can purchase depends on your coverage gap. Note if there is an insurance allowance per child in your canton. You can save additional taxes with such allowances.
Beware: You can't deduct these insurance premiums on your taxes
Not all insurance premiums can be deducted from your taxes. This concerns
- Liability insurance
- Home insurance
- Car Insurance
- Property insurance
- Travel insurance
Professional expenses are tax deductible
So that you can practice your profession, various costs sometimes arise. These can be costs for the way to work, various work equipment that you pay for yourself, but also costs for further education. Various professional expenses are tax deductible.
Tax deductible costs for further education
What you can deduct for tax purposes in terms of further education costs varies from canton to canton. You can only include further education costs in your tax return if they are not costs for primary initial training. For the most part, tax administrators require receipts for continuing education expenses. Without proof, costs up to CHF 500 are deductible in the canton of Zurich and some other cantons.
In order to be able to deduct costs for further education for tax purposes, you must be in professional life. Take a sabbatical and complete education or training, the costs are not deductible. Education or training must be related to the job you do. In most cantons, up to CHF 12,000 is tax deductible. In addition to the actual costs of continuing education, costs for learning materials as well as travel expenses are also recognized.
Taxes in a part-time job
Taxable income can be reduced by taking on a part-time job. In some cantons and at the federal level, up to 20 percent of the additional income for professional expenses can be deducted as a lump sum from taxes. Deductions that exceed CHF 2,400 must be substantiated.
Bicycle and public transport costs
In most cantons, you can only deduct costs for commuting to work by car for tax purposes under certain conditions, which may vary from canton to canton:
- nearest access to public transport is more than one kilometer away from your job or home
- Public transportation does not run at the beginning or end of the working day
- Door-to-door commute is at least an hour shorter by car than by public transportation
- public transport cannot be used due to an illness or disability
- Employer requires you to use your personal car while at work, and pays for it
- Car and motorcycle expenses, however, are tax deductible without limitation in the cantons of Jura, Appenzell-Innerrhoden, Glarus, Vaud, Zug, Graubunden, Neuchatel, Fribourg, Obwalden, Solothurn, Ticino and Uri.
In most cantons, you can deduct CHF 700 as a lump sum for bicycle journeys to work.
If you travel to work on public transit, you can claim subscription costs on your tax return.
Other professional expenses you can deduct
Other professional expenses are also tax-deductible. You should submit proof of computer, smartphone, textbooks, meals or work clothes with your tax return. The amount of deductible contributions differs, depending on the canton. If you work in a home office, you can also deduct costs for rent, electricity, heating or furniture on a pro rata basis under special circumstances.
Professional expenses also include the cost of meals away from home, which in some cantons can be claimed against tax under special circumstances.
tax deductibility for children
You can also deduct minor children for tax purposes. The possible deductions differ, depending on the canton. If your children are already of age and they are still in education, you can also take deductions. Education expenses are deductible if the children live in your household and are 25 years old. Have not yet reached the age of majority. If you pay alimony for a minor child who no longer lives in your household, these amounts are also tax deductible. The parent who receives the alimony must pay tax on it.
Maintenance costs for real estate
If you have purchased a property, are the maintenance costs tax deductible. Depending on the canton, different flat rates apply for maintenance work. This also applies to vacation homes and apartments. If you, as a condominium owner, make contributions to renewal and management funds of the condominium association, you can claim them for tax purposes if they are used for value-preserving measures.
Deductibility of debts
You can also deduct debts up to a maximum of CHF 50,000 if they are loan interest from private loans, mortgages, interest on arrears or credit card balances. Building loan and building lease interest cannot be deducted in some cantons. Lease interest and lease payments are not deductible.
Social deductions according to age and marital status
You can save taxes with social deductions, which vary according to age and marital status. You do not have to prove the expenses. You only need to provide proof of personal circumstances. The amount of social deductions also differs, depending on the canton. If you are a low-income earner, you may be subject to additional deductions in some cantons depending on your marital status. If you are supporting an incapacitated or financially weak partner, further social security deductions are possible.
If you pay alimony to your divorced or separated spouse, these costs are also tax deductible.
Save taxes with donations
For donations, you can deduct a maximum of 20 percent of your net income for tax purposes in most cantons. In most cantons, you must donate at least CHF 100 per year to declare the amounts on your tax return. Recognize donations made to institutions that have public purposes or are non-profits. Donations to the federal government, cantons and municipalities are also tax deductible. This also applies to party donations, regardless of which party you support. You can also deduct donations in kind from your taxes.
Seek help from tax advisor
A tax advisor takes a fee for his services, but it makes sense to use him. This makes sense especially for higher income and self-employed people. The tax advisor shows you where you can save taxes and what is deductible. It knows perfectly legal tax tricks and is also familiar with the regulations that apply in your canton.