Tips for Filing Your Tax Return
Tax Tips
Every year, many people find themselves reluctantly filling out their tax returns. With all the stress and confusion involved, it’s easy to overlook one or two opportunities to save on taxes. That’s why many people seek help with their tax returns.
Healthcare Costs
The vast majority of costs incurred due to accidents or the treatment of illnesses are covered by health insurance providers or other insurance companies. However, if the financial burden resulting from copayments exceeds two to five percent of net taxable income, the amount exceeding that threshold may be deducted on your tax return. The exact thresholds are set by the cantons and therefore vary from canton to canton.
Donations
Financial support for nonprofit institutions and organizations is also rewarded with tax relief. Amounts up to one-fifth of net income are tax-deductible. In some cantons, donations to political parties and labor unions are also taken into account.
Income from Securities
Income from dividends and interest on securities is generally taxable and must be reported on your tax return using your securities portfolio. Especially if you hold a large number of securities, it can be helpful for investors to have their bank prepare a tax statement—which is essentially a way to have this part of the tax return filled out for them.
In most cantons, the costs associated with this are deductible as asset management expenses and can be claimed as a tax deduction.
Asset Management Fees and Negative Interest Rates
If costs or fees are incurred for a securities account, a safe-deposit box, or a safe, these can be reported as asset management costs on your tax return. The same applies to collection fees for coupons and negative interest rates that are not listed in the statement of liabilities. In some cantons, up to 3 per mille of the value of your securities portfolio is considered an asset management cost.
However, fees for consulting services (e.g., having your tax return prepared) or fees related to the purchase and sale of investment securities are not deductible.
AHV Contributions After Early Retirement
The obligation to pay AHV contributions generally applies until age 65 for men and age 64 for women. Accordingly, even people who are not employed and early retirees continue to pay contributions as long as they fall within this age range. In these cases, you can report the contributions paid on your tax return and claim them as a deduction.
Property Maintenance
Property owners can claim a portion of the imputed rental value or rental income as a flat-rate deduction for maintenance costs on their tax return. In most cantons, there is an age limit of 10 years for buildings: 10 percent can be deducted for newer properties and 20 percent for all older ones. If the costs of renovations exceed the flat-rate deduction, it is worth claiming the actual amount as a deduction on your tax return instead of the flat-rate deduction. This also includes premiums for property and liability insurance.
Energy-saving measures
Expenses for energy-saving investments are exempt from the requirement to preserve property value and may therefore be deducted even if they result in an increase in property value. These expenses may be claimed on your tax return for up to three years.
Underutilization of Primary Residences and Vacation Homes
Unused rooms or living space can be claimed as a deduction from the imputed rental value on your tax return. In some cantons, however, it’s important to note that the rooms in question must be unfurnished if you wish to claim this deduction on your tax return.
For vacation rentals, the percentage of the property that is rented out annually can also be deducted from the imputed rental value. In some cantons, the depreciation of the furnishings in your own rental property can also be claimed for tax purposes.
