Do not forget to include the deductions in your tax return!

Although a lot of deductions disappeared in the past years there are still certain expenses that can be deducted from your taxable income. Are you a resident taxpayer (or a partial non-resident taxpayer) and do you have one of the expenses as indicated below, then you may be eligible for a deduction in your tax return.

Alimony

You can claim a deduction for alimony payments, including maintenance payments, to a former spouse/partner.

Charitable contributions

When you make donations to a charitable organization you may be eligible for a deduction in your tax return. The gift should be contributed to a qualifying charity (ANBI or SBBI). Besides this in most situations a threshold applies.

Educational expenses

As a resident taxpayer of the Netherlands you can also claim educational expenses for yourself or your fiscal partner, provided that the education is to get a better position on the Dutch labor market. You can only claim a deduction if you are not entitled to a scholarship. Expenses that qualify as a deduction are tuition fees, course fees, examination fees and books that are necessary for the study. Costs for a.o. a computer, travel expenses and for the education of your children are not deductible. A threshold applies on the deduction.

Please keep in mind that you can also claim the educational expenses if you do not have any taxable income. Your tax return will then result in a negative income that can be offset against positive income in future years.

Life annuity premiums

Life annuity premiums can be taken as a deduction if you can prove that you have a shortage in pension built up.

Medical expenses

It is possible to claim a deduction for health expenses that are not reimbursed by the Health insurance company. The expenses should be made for you, your fiscal partner or for your children below the age of 27 or for your parents, brothers and sisters provided that they are part of your household. The insurance premiums itself and the obligatory own risk are not deductible. The expenses that are deductible include expenses arising from sickness or disability. Please keep in mind that a threshold based on income applies to the deductibility of the expenses. Besides this some expenses are capped.

Mortgage interest payments

Mortgage interest payments relating to the financing, renovation or maintenance of your principal residence can be taken as a deduction in your tax return. Besides this financing costs can be claimed as a deduction. To determine the net amount of the deduction a deemed income based on the WOZ value of the residence has to be taken into account. Please keep in mind that certain conditions apply to the mortgage loan, such as a full repayment of the mortgage within a maximum period of 360 months.

Unsure on how to include the deductions in your tax return? Contact us for assistance with the preparation and filing of your tax return.

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