When it comes to taxes, most of us want to avoid paying more than we need to. That's why it's important to have a basic understanding of your tax deductions. In this blog post, we will share 4 tips on how to minimize your taxes and optimize your tax deductions
1. Know your deductions:
One of the most important tools to optimize your taxes is to be aware of the deductions you are entitled to. Deductions such as mortgage interest expenses, travel deductions and mileage deductions can reduce your tax payment. Make sure you know the applicable rules for deductions and take full advantage of them. You can read more about which deductions to keep track of right here.
Paying into a pension can give you some tax benefits. For example, many people choose to pay into an annuity pension, where you can deduct your contributions and defer taxation until you start receiving payments.
3. Keep track of changes in tax legislation:
Tax laws change frequently and it's important to keep up to date with the latest changes. Changes in legislation can have an impact on your tax obligations. Stay up to date with the latest news on tax legislation or consult with a tax expert to ensure you have the most accurate information.
4. Be active:
The biggest mistake people make is being passive and thinking that SKAT will take care of everything for them.
Many Danes believe that all your tax deductions are automatically included in your annual tax return. But this is far from the case. There are over 20 different deductions that you have to report yourself, which means that we miss out on DKK 11 billion of our own money every year. See which ones below in our tax guide to your deductions.
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.
TaxHelper's tax guide helps you find your deductions so you get all the deductions you're entitled to
What is the annual statement you get from SKAT?