Have Someone Fill Out Your Tax Return

Commuting expenses are tax-deductible if you use public transportation, a car, or a bicycle. There are a few details to keep in mind regarding this deduction—such as how often you commute to work and which mode of transportation you use. If you have someone fill out your tax return for you, make sure the amount falls within a certain limit (maximum of 3,000 Swiss francs).

All work-related expenses can be claimed on your taxes. Examples of work-related expenses include: work clothes, transportation costs such as train tickets, and electricity used while working from home. These costs can be claimed on your taxes.

Up to a maximum of 4,000 francs, work-related expenses can be deducted for tax purposes even without specific documentation. As a general rule, you can assume that these expenses amount to 3 percent of the direct federal tax on your net salary. Additional work-related expenses exceeding this flat-rate amount are also deductible—provided you can document them with supporting evidence.

The Swiss tax system is extremely competitive, with Pillar 3a playing a particularly important role. Contributions to Pillar 3a can be deducted from income tax up to a specified maximum amount. This maximum amount is approximately 7,056 CHF for employees and around 35,280 CHF for self-employed individuals without a pension fund.

Tip: You should contribute the maximum amount to Pillar 3a each year. The amounts you contribute in this way pay off twice over. Not only will you have more assets available in retirement, but this is also an ideal way to minimize your tax burden.

If you’d like to learn more about the deductions and rules for Pillar 3a, your Swiss tax advisor will be happy to assist you. They can explain how the contributions you’ve made can help you save on your tax return.

The second pillar of the pension fund consists of payments that can be claimed on your taxes—especially if you have someone prepare your tax return for you and ensure that all relevant contributions are reported correctly.

Voluntary contributions made to close pension gaps can be claimed on your tax return. So-called installment payment plans can help you save on taxes —and if you’d like to have someone fill out your tax return for you, you’ll benefit from a professional calculation of the deductible amounts.

The amount of the permitted contributions depends on how much has been contributed over several years. New maximum amounts apply only when opening new accounts—not to existing ones. The maximum amount is listed on your pension fund statement. Alternatively, your tax advisor or the relevant tax authority can assist you.

Premiums for life insurance, accident insurance, and health insurance are tax-deductible. In this case, health insurance premiums are indirectly deducted for tax purposes through a flat-rate deduction.

The maximum amounts vary depending on marital status, tax circumstances, and place of residence. A deduction for the supplemental insurance premium or a direct deduction for the health insurance premium is not permitted in this case.

The premiums paid, which go directly to accident insurance, are considered pension contributions. This means that these accident insurance costs can simply be deducted for tax purposes as pension contributions. Please note the applicable maximum amounts—only the portions that have not been fully utilized are still deductible.

Premiums paid for life insurance (Pillar 3b) can be deducted for tax purposes indirectly through the flat-rate deduction. Here, too, the maximum allowable amounts must not be exceeded.

Costs for education and continuing education can be claimed on your tax return. The maximum amount for continuing education may not exceed 12,000 Swiss francs. However, it is important to note that educational expenses such as the costs of a first degree or an apprenticeship are not reimbursed. If you have your tax return prepared by a professional, you can be sure that your continuing education expenses will be correctly accounted for and that all applicable deduction limits will be adhered to.

Meal expenses incurred for work-related purposes may also be claimed. As a general rule, meal expenses incurred for work are tax-deductible. If it would have been possible to eat at home, the cost of eating out may not be deducted. The distance between the workplace and the taxpayer’s residence plays a particularly important role in this regard.

Main meals are calculated as flat rates of 15 francs each, or as subsidized meals provided by the employer at 7.50 francs. Meal expenses are only recognized if all requirements are met. Otherwise, the tax office will deny the deduction. It is important that you have a tax professional review your tax return before you file it.

Medical expenses that you pay out of your own pocket may be claimed on your tax return.

In this case, the expenses must exceed a specified percentage of net income (for example, 5 percent) in order to be deductible.

For healthcare costs to be eligible for a deduction, it is important that they can be medically substantiated. Healthcare costs include fees paid to recognized naturopaths, medically necessary transportation, and prescription eyeglasses.

Your tax advisor can provide you with information on the current maximum amounts for medical treatment or healthcare costs in Switzerland.

For bank loans that have been taken out, the interest on the debt that has accrued can be deducted from income tax. This deductible interest on debt may have been incurred through personal loans, mortgages, or other forms of personal borrowing.

However, only the interest accrued may be claimed; repayment of loan installments is not eligible. If a car is financed, the accumulated loan interest may be claimed. A lease agreement is not tax-deductible and may not be submitted as such.

If both spouses are employed and work, special allowances can be claimed for tax purposes. Depending on the canton, there are set maximum amounts that must be observed. The maximum amount for federal income tax is 13,400 francs.

The costs of outside childcare can also be claimed on your taxes. This includes expenses for child care providers and daycare centers, which are tax-deductible. However, you must not exceed the specified maximum amounts. If you have someone prepare your tax return for you, make sure these expenses are recorded correctly and taken into account in the best possible way.

For federal income tax, a social deduction of 6,500 francs per child may be claimed. Depending on where you live, separate lump-sum amounts or higher deductions may also be available.

Alimony payments and child support expenses can be claimed on your taxes. Spousal and child support payments are also tax-deductible.

Interest earned on a savings account can be claimed on your tax return. The deduction for savings interest may not exceed 1,700 francs.

The withholding tax paid on bank deposits is tax-deductible. When interest is credited to a deposit account, the amount credited is only 65 percent of the interest actually earned—the remaining 35 percent is remitted directly by the bank to the tax authorities.

If you report your credit accounts correctly on your tax return, you can receive a refund of the withholding tax. If you have someone else fill out your tax return for you, make sure these details are recorded accurately. When accurately accounting for withholding tax, you must also take into account other transactions and applicable limits. If you’re unsure about this, ask your tax advisor.

Donations made to organizations and institutions that operate for charitable purposes are tax-deductible.

Provided certain requirements are met, donations made to public and exclusively charitable organizations may be claimed for tax purposes. You should consult a tax advisor or the relevant tax authority to determine the applicable donation limits for charitable organizations.

Membership dues or donations to political parties are tax-deductible. Since 2011, individuals in all cantons have been able to claim a tax deduction for membership dues paid to political parties.

A deductible amount of 10,000 francs has been set for federal direct income tax. Individual cantons may, of course, set their own maximum amounts.

Disability-related expenses are tax-deductible. Unlike accident- and illness-related expenses, disability-related additional costs are generally fully deductible. However, the individual must be recognized as a person with a disability in order to claim this deduction. Visual aids, contact lenses, and eyeglasses do not qualify.
In this case, people with disabilities are recipients of long-term care benefits or IV benefits. Only disability-related additional costs that are self-financed are deductible—that is, only costs not covered by charitable organizations or insurance companies.

Office expenses can be claimed. There are fairly strict requirements for deducting the cost of a home office, and these must be strictly adhered to. The home office must be in regular use and set up specifically for working from home.

The guideline is 40 percent of a full-time workload (often even more). The employer must not be able to provide a suitable office. In addition, the home office must be used exclusively for professional purposes. Only if these three conditions are met can a proportionate share of the office costs be deducted from income tax.