How to claim tax credit for household expenses
You can file the tax credit for household expenses either for your tax card or for your tax return. If you file the credit for your tax card, you will benefit from the credit immediately. If you file the credit for your tax return, the credit will be taken into account in the amount of back taxes or tax refund.
The year of payment determines the year for which you can file the tax credit for household expenses.
Example: The work was contracted on 1 December 2020 and it was performed during December. The invoice was paid on 15 January 2021. You should file the tax credit for household expenses for the 2021 tax assessment.
If you are filing on paper, you can find the link to the form at the bottom of the page.
- I am supplementing the tax return for 2020
- I am filing information for 2021 to be taken into account in the tax card
- I am filing information for 2021 to be included on the tax return
You need the following information
When you buy services from a company:
- The company’s Business ID (note that the company must be in the prepayment register)
- The end total of the invoice
- The share of the expenses paid for work, including VAT
You can get credit for the share of the expenses charged for the work itself, but not for other costs (such as tool or travel expenses). Because of this, the company that did the work must also include in the invoice a specification of the expenses that do not count towards the tax credit for household expenses. If the work-related share is not specified in the invoice, ask the company that did the work for more information.
When you hire an employee:
- The employee’s personal ID
- The gross wages you paid to the employee (including tax withheld)
- Details on employer’s contributions and other indirect wage expenses
Save the receipts for the work done. We may ask you to show them later. Read more about how long you should save your receipts.
Frequently asked questions
You can claim tax credit for household expenses per calendar year.
The credit is deducted from the taxes of the year when you paid the company’s invoice or the wages and employer’s contributions for your employee. For example, if you order renovation work at the turn of the year and you pay invoices for the work during two different calendar years, you can claim the tax credit for both years. However, you will also have to pay the credit threshold amount twice.
The credit is deducted primarily from your taxes on earned income and capital income. Most other deductions reduce the amount of earned income that is taxed, not the amount of tax itself. This means that the tax credit for household expenses has a bigger effect on your taxes.
Please note that if you do not have enough taxes payable to benefit from the full amount of the credit, the amount that was not credited to you this year cannot be carried over to the next year.