HomeExpatTop 8 items you didn't realize were Tax Deductions

    Top 8 items you didn’t realize were Tax Deductions

    How Can you save money in Netherlands? Paying taxes can sometimes be a bit heavy on your pockets and when tax season arrives its bit of headache also. All you need to do is to be informed about Tax Deductions!!

    What are Tax Deduction expenses?

    Tax Deductions expenses are job-related expenses on which you can claim tax relief.

    If you’re self-employed or have to fill in a self-assessment tax return, or are claiming for relief then you must use your self-assessment to claim tax relief on expenses.

    Type of Medical Expenses in the Netherlands

    Medical expenses can blow any budget but when your deductible medical expenses exceed the threshold of your adjusted gross income, you can claim the amount over that threshold as an itemized deduction. Interestingly, these expenses can include the premiums you pay for your health insurance after using tax money.

    If you are self-employed, you might be able to deduct all of your health insurance premium costs as an “over the head deduction” that can reduce your adjusted gross income. Over the head deductions can be taken without requiring you to itemize your deductions. This way you can save a lot on your taxes.

    Type of Child Care Expenses in the Netherlands

    The cost of having a child care provider to watch your children might be Tax Deductions. If you are working partners, you need help to look after your child then these expenses can be deduced from your taxes. To claim child care expenses, you’ll need supporting documentation, whether the provider is an individual or an organization, including the child care provider’s:

    • Name
    • Tax identification number
    • Address of the location where the childcare was provided
    • In some states, you’ll also need to report the child care provider’s telephone number

    Your child care expense is not technically a Tax Deductions. It’s covered under the Child and Dependent Care Tax Credit, which might be even better.

    Tax Deductions
    Child care Expenses

    Type of Job hunting costs in the Netherlands

    Job hunting can be stressful enough, let alone having to handle all of the expenses that go along with it. Luckily, job search deductions can help you out. The major aspect you need to focus on is that your job search must be within your field. For example, you wouldn’t be eligible if you went from a job in the marketing field to education. Below is a list of eligible expenses that can be deducted.

    • Resume preparation – Make sure you keep all the receipts for hiring someone to professionally rewrite your resume.
    • Phone calls with potential employers whether you get the job or not.
    • Gas, mileage and other travel expenses that you accumulated while interviewing.
    • Moving costs after you’ve finally landed that new job that might have sent you halfway around the country.

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    Type of Startup costs in the Netherlands

    Making the decision to start a business can be stressful, and there are several unavoidable costs associated with it. But you can claim for relevant start-up costs up to seven years before the business begins operations. Expenses such as computers and software, professional fees to ensure your company is registered correctly, internet and web domain fees, and even advertising are all Tax Deductions.

    In addition, any expenses that are paid for using personal funds can be claimed for when the company or legal entity starts trading, so be sure to keep receipts and maintain accurate records as you’re going through the start-up process. 

    Gambling losses

    Paying taxes on your gambling winnings can be frustrating, especially if the amount you won is less than the amount you lost. You can deduct your gambling losses from your winnings. You will just need to keep a detailed record of all your losses and winnings and make sure that you include your winnings as taxable income. You need to keep record of:

    • Date and type of gambling
    • Business name and address where you were gambling
    • The people that you were gambling with
    • The amount you won and lost

    Also, you will be needing some documents like W-2G form, 5754 form and receipts from the casino to prove your gambling losses.

    Donations in the Netherlands

    Donations to a registered charity by a limited company are an allowable expense, and the value of the donations can be deducted from business profits before paying tax, reducing your corporation tax bill.  To claim tax relief, you must keep a record of donations showing the date, amount and which charities you’ve donated to.

    For donations of land, property or shares, you need to keep legal documents showing the sale or transfer to the charity and any documents from a charity asking you to sell land or shares on its behalf.

    Can you save money in Netherlands
    Donation in the Netherlands

    What are Teaching costs in the Netherlands?

    Teachers have to reach into their own pocket every now and then to purchase items needed for the classroom. While it may sometimes seem like nobody appreciates that. It allows qualified K-12 educators to deduct up to $250 for materials. That gets subtracted from your income, so you can take advantage of it even if you don’t itemize.

    Accidents, and Damages

    There are things that are simply out of our control, like your car breaking down, your roof caving in after a storm, or even you actually breaking a leg. If you don’t have insurance and you have to pay out of pocket for repairs and medical bills, you can include them when you’re filing for taxes as a tax deduction. It’s not all bad luck after all!

    To know about Taxes in Netherlands visit, Taxes in The Netherlands | What All You Shouldn’t Ignore? Be Aware of Your Taxes in 2021 & Beyond.

    Keep exploring...

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