Tax credit for household expenses
Tax credit for household expenses is your right to deduct expenses on your tax return from the work you assigned. Tax credit for household expenses is possible to apply for household work which you assigned in your home, holiday home, or in your parents or grandparents’ home. Type of housing does not have influence so you can apply the tax credit apart from the fact that whether you own the apartment or not.
What kind of work is covered by tax credit for household expenses?
Tax credit for household expenses is possible to apply for regular household work. This includes, for example cleaning, ironing, laundry, childcare, cooking, renovation, gardening, snow plowing, timbering in the garden, making firewood and all sorts of IT-support. Finnish tax authorities provide comprehensive information on their website regarding what type of work is covered under the tax credit.
If you have received for the same assignment, for example support for informal care, service voucher provided by the municipality or child home care allowance, tax credit for household expenses is not allowed.
How much can I have tax credit for household expenses?
When you buy the work from the service provider who works through Eezy, you can have tax credit for household expenses according to the conditions set by the tax authority. This means you can deduct 40% from the price of the work. Eezy’s business ID should be added while applying the tax credit (2197002-2).
Materials or travel expenses are not deductible, so the invoice should clearly separate the work and expenses that are not deductible, such as materials and travel expenses.
Tax credit for household cannot be more than 2 250 € yearly and the excess is 100 €. The credit is admitted in that year when you have paid the invoice. (In case you notice later that you can have applied tax credit, you can apply changes to your tax return through the complaint.)
Tax credit for household expenses is personal, so you and your spouse can have tax credit of 4 500 € at the most. If the amount of 2 250 € does not exceed, it is recommended that only one of you applies the credit when the excess is deducted only once.
Eezy is an easy way to buy work
By using Eezy you can employ persons easily without being an employer with all the obligations. We will pay salary to your service provider and take care of all mandatory obligations concerning invoicing services. You will pay the work with one invoice, and you can forget salary payment, pension insurance payments, form filings and annual reports. The service providers are covered by liability insurance up to 1 million Euros and an accident insurance. Our service is suitable for short term assignment as well as permanent employment.