6 deductions you can't miss on your 2021 annual tax return

Aske Buemann

CEO & Co-founder

Tips for the 2021 annual statement

The 2021 annual tax return came out on 14 March, and it's time to see if you'll get a tax refund or have to pay a residual tax. If you want to avoid having money out of pocket, TaxHelper gives you 6 tips here on what to pay special attention to on your 2021 annual statement.

Also 2021 was a year very much affected by Corona closures, while many Danes have spent their money differently during the crisis. Therefore, again this year, pay special attention to your deductions.

The driving deduction is again not automatically transferred this year, so you have to add it to your annual statement. But this is not the only deduction to be aware of this year. That's why TaxHelper has compiled the 6 deductions that affect most Danes right now:

  1. The driving deduction will not be automatically included again this year
  2. Deduction for crafts and services has increased enormously in 2021
  3. Hidden deductions when buying and selling a home
  4. A hidden deduction for consumer loans (and quick loans)
  5. Not all stock trades are automatically included
  6. Deduction for courses, conferences and small trips

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If you want to avoid having money out of pocket, TaxHelper gives you 6 tips

1. The driving deduction will not be automatically included again this year

In particular, the mileage allowance has been a hot topic both last year and this year. SKAT has not transferred the deduction automatically, so it has been up to each of the 1.2 million citizens to report their deduction correctly. TaxHelper has made a survey that shows that as many as 38% of citizens are still not aware that they must report the deduction themselves on the annual statement for 2021.

The new reporting process has also meant that many people make mistakes in reporting the deduction, and so do not get the value of the deduction transferred to their annual statement. There is therefore good reason to have your deductions checked, even if you have reported them yourself. You can use online tools like TaxHelper, which calculates and reports your deductions.

2. Deductions for crafts and services have increased enormously in 2021

The construction industry has been glowing under Corona, where everyone has had more time to renovate the home and take advantage of the 31,300 DKK higher deduction in 2021. Therefore, it is important to remember to get all the bills included when the max amount has been raised so significantly. The deduction is as much as DKK 25,000 for services (cleaning, gardening, childcare, etc.) and DKK 25,000 for crafts (including insulation, window replacement, solar panels and other environmentally friendly work). Here it is important to bear in mind that the deduction is only for the salary of the craftsmen or service worker and not for any materials.

3. Hidden deductions when buying and selling property

In 2021, the desire to change accommodation has been particularly high, so over a quarter of a million homeowners have changed accommodation according to figures from Boligsiden. In this context, you should pay special attention to the fees you pay to your bank and mortgage company, because there may be several thousand dollars to get in deductions. These are fees such as 'guarantee commission' and 'differential interest', which people must report themselves, where the deductions can be up to DKK 20,000.

Many of the expenses we have with our banks are automatically reported, so many people overlook these deductions as they are one of the few expenses your bank does not report for you, but there can be a lot of money to be made, so it is important to keep in mind what expenses you may have had in connection with the purchase and sale of a home. You can read more about deductions when buying and selling a home in this article.

4. A hidden deduction for consumer loans (and quick loans)

The deduction is quite unknown and applies, among other things, if you have a consumer loan, credit line, overdraft or other loan that must be paid back within 2 years. In these situations, you are actually entitled to the deduction and you have to remember to report it yourself. One in four Danes over 18 has a consumer loan, according to figures from comparison site LendMe, so it could be relevant for many Danes. Specifically, the deduction applies to the fees associated with. with the establishment of the loan.

Unfortunately, many people do not report their deductions, as this is one of the expenses that banks do not report automatically. Therefore, you should be aware of the expenses you often have when you take out a consumer loan.

5. Not all stock trades are automatically included

If you are one of the many Danes who have jumped on the investment wave under Corona, you should pay attention to one kind of stock in particular. Most stock trades are automatically reported by the platform you trade on, but one group is not. This applies to smaller stocks traded on unregulated exchanges such as First North, such as entrepreneurial companies Happy Helper, Freetrailer, Hove and Penneo. If you've had a loss you have to declare the deduction yourself, and the same with the gain.

So if you're new to the stock market, it's important to pay particular attention to whether your shares have been reported automatically if you're not used to reporting your stock market trades, because there could be a really big deduction hiding there.

6. Deduction for courses, conferences and small trips

Epinion has found that almost 1 mil. Danes each year miss out on the travel deduction. Fewer people travel under Corona, but if you have been on a course, trip, conference or similar with your job, you may be able to claim a deduction, even if your employer has paid for all your food and accommodation. The deduction can be up to DKK 5,000 a week, and all that is required is that you have spent the night out and been away for more than 24 hours.

The travel deduction is, despite the lower activity under Corona, still one of the deductions most Danes are entitled to. Nevertheless, many people do not report it, as there are many things you need to know if you want to report the deduction, as there are many different deduction rates, depending on the expenses you have incurred for the trip, and the calculations can therefore quickly become complex.

See if you can get a tax refund in just 15 minutes.

In TaxHelper, we help you find the deductions you're entitled to. You answer a few simple questions that take just 15 minutes to complete.

Then we report the deductions, and you get an extra DKK 2,704 back in tax. At the same time, you only pay if you get a tax saving.

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