Do you want to pay less in taxes on your next tax return? OCU recommends taking action by the end of 2023.
1. Take advantage of regional deductions
Did you know you can deduct your child’s daycare costs, education expenses, public transportation passes, housekeeping services, installation of water or energy-saving fixtures, rent, etc.?
2. Communicate any changes in the family
Inform your employer of any changes in your family circumstances: if a child is born, if you get divorced, if you have a disability…
3. Exchange cash wages for tax-free in-kind wages
Food stamps, transportation and daycare checks…are exempt from personal income taxes.
4. Donate
If you donate to NGOs, foundations and non-profit entities, 80% is deductible on the first €150 and 35% on any amount above that amount.
5. Take advantage of the housing deduction
If you are entitled to a tax deduction for purchasing a principal residence, you should pay off your mortgage by the end of the year.
6. Take advantage of electric vehicle and charging station credits
If you bought a new electric car on or after June 30, 2023, and registered it before January 1, 2024, you will be able to deduct 15% of its value, including fees and taxes, on your next return. Deducting public assistance, up to a maximum of more than 20,000 euros.
7. Wait until age 65 to sell your home
The profits you make from the transfer will be tax-free.
8. If you are a landlord, take advantage of
If you are the owner of a rental property, you can deduct from your income subject to personal income tax the expenses incurred in acquiring the property: IBI, advertising, agents, insurance, community…
9. Save on pension plans
Contributions to a pension scheme can reduce your personal income tax.
10. Compensation for losses and gains
If you made profits from selling or donating assets during 2023 and accumulated losses in other investments, one way to save on your next return is to crystallize those losses so that you can offset them with profits, and vice versa. Likewise.