The tax guide to your deductions

The 3 most overlooked deductions

The first overlooked deduction in the tax guide is the driving allowance. For many of the 1.4 million Danes who use the driving deduction, SKAT usually calculates it automatically based on your place of residence and your employer's address. But in 2020 and 2021, you have to declare it yourself, which means that many risk missing it. You can read more about the driving deduction here.

The next deduction is the travel deduction, where Epinion has found that almost 1 million Danes miss out on the deduction every year. During corona, fewer people travel, but if you have been on a course, trip, conference or similar with your work, then there may be a deduction to claim, even if the employer has paid for all food and accommodation. This can be up to DKK 5,000 per week in deductions. You can read more about the deduction here.

The third most overlooked deduction is actually a collection of several possible deductions when taking out or remortgaging your mortgage. In 2021, a record number of homes were bought and sold, so a quarter of a million Danes are potentially entitled to these deductions. These include fees such as 'guarantee commission', 'differential interest' and 'mortgage insurance'. You can read more about these deductions here.

The 5 loan deductions no one knows about

The 2-year loan deduction is a fairly unknown deduction. This applies, for example, if you have consumer loans, payday loans, overdrafts or other loans that must be repaid within 2 years. In these situations, you are actually entitled to a deduction and you should remember to report it yourself. This is one of the deductions for expenses paid to banks and loan providers that are not automatically reported. You can read more about the deduction here.

The foreign loan deduction is not as common, but when it is available, it's a big deduction. It comes with any loan you have abroad or with foreign banks, such as Bank Norwegian, where you can deduct the interest. You can read more about the deduction here.

The deduction for joint loans is a fairly unknown deduction, but many Danes, especially in large cities, can benefit from it. It concerns apartment owners who have taken out a joint loan through their owners' association. It can, for example, be for renovation of the building's facade, roof, downpipes or the like, where you can get a deduction for the interest. You can read more about the deduction here.

The deduction for private loans is also an unknown deduction. This applies, for example, if you have borrowed money from family, friends or other private individuals. If you pay interest on these loans, you can claim a deduction. You can read more about the deduction here.

The deduction for loans with 3 or more borrowers is the last of the five unknown loan deductions that are not automatically reported. This applies if you have taken a loan from, for example, a bank where there are 3 or more borrowers. In other words, all persons are liable for their share of the debt. You can read more about the deduction here

4 other deductions that can give you a lot of money back

The craftsman deduction is one of the most well-known deductions, in fact, over a third of Danes have used it. In 2018 alone, almost DKK 3 billion was reported to SKAT in craftsman deductions. But we still miss out on up to half of the craft deductions, according to SKAT itself. In 2021, you can get as much as DKK 50,000 in this deduction. You can read more about the deduction here.

The deduction for business losses is relevant for those who have started or owned shares in a company (not listed on a stock exchange). And there can be a lot of money to be made here. For example, a citizen was able to claim a deduction of DKK 1,750,000 for his losses. Deductions cover losses that you may experience if, for example, like many people, you have started an IVS or ApS, which you later had to close. You can read more about the deduction here.

If you are divorced or separated from a former partner with whom you have children, you should be aware of the child support deduction. This is the amount you pay to the other parent if you have a child and no longer live together. However, not everyone knows that you can actually get a deduction for the child support you pay. You can read more about the deduction here.

If you are divorced, you should be aware of the deduction for spousal maintenance. This is the amount you potentially have to pay to your former partner if you no longer live together. However, not everyone knows that you can actually get a deduction for the contribution you pay. You can read more about the deduction here.

That's all the deductions in the tax guide, we hope you found it useful. The tax guide is our way of helping you get an overview of relevant deductions, and if you want help with deductions, take a look below.

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