3 things not to miss on your 2021 tax return

3 things to be aware of this year

1. if you work at home and therefore do not go to work every day. Then you need to correct your driving deduction for 2021.

If you don't correct it, you could face a tax residual of, say, DKK 5,000 if you drive 35 km to work.

2. if you have lost or changed your job, e.g. because of the corona crisis, remember to update your income for the year so that you are not overtaxed.

You must also correct your daily allowance or cash benefit if you have switched to this.

3. if you have bought (or sold) a home in 2020, remember to update your interest deductions to suit your new situation.

For example, if your interest deduction is automatically set 10,000 DKK too high, you could end up paying a residual tax of 2,500 k.

A tax tip for the geeky

If you really want to optimise your tax return, here's a tip to avoid residual tax.

If your monthly salary is less than DKK 31,900, you'd better set your expected income a little too low. This is because your tax deduction (which comes automatically) is set too low, and you pay too little tax during the year.

However, if your monthly salary is over DKK 49,300, you'd better set your expected income a little too high. This is because you pay top rate tax, and SKAT's estimated rate is therefore lower than the tax you pay.

For anything between DKK 31,900 and DKK 49,300 , you just need to set your income to what you actually expect. It doesn't change anything in that case.