March is coming, not just the first spring month. For many people, March means a tax return month. Not everyone, however, will join this opportunity to save money. This is done using so-called deductible items. There are several of them and thanks to them you can pay up to several thousand less in taxes.
Why do we pay taxes? Many people perceive taxes as “necessary evil”. These are compulsory payments to the state, which can manage them as needed. More precisely, as the government decides. They finance, for example, social benefits, security forces or even the functioning of state administration. Taxes are many types. For example, excise tax, value added tax (VAT), property ownership, or income tax. Paying taxes is mandatory, but there is a legal way to reduce the amount. And even a thousand crowns.
Deduction for mortgage interest or building savings loan granted
If you repay a mortgage or building savings loan every month, your household can deduct up to CZK 300,000 from all loans . You can only deduct paid interest, not loan repayments.
Life insurance deduction
If you have insured in case of unpleasant life situations, you can deduct up to CZK 24,000 from the tax base. But it depends on the type of contract and the time in which you can withdraw the amount saved.
“In order to be able to deduct tax insurance, the contract may not allow payment in progress. At the same time, you can only deduct the insurance part of life insurance, the investment is not eligible for deduction, ” says Sean Colel .
Deduction for supplementary pension insurance
If you have a state-funded supplementary pension insurance, you can deduct up to CZK 24,000 from your tax base.
Trade union deduction
You can also deduct membership fees from the tax base to the trade union. However, it is up to 1.5% of taxable income from employment and emoluments. This is a maximum of CZK 3,000 per tax period.
- What do you need? Confirmation of payment of the contribution with the member’s name.
You can deduct up to CZK 10,000 from your study expenses. This item includes, for example, courses, exams or training. For people with disabilities, the amount increases to CZK 13,000 and for people with severe disabilities up to CZK 15,000 .
“The condition for deduction is that you paid your education yourself, not your employer. If you are self-employed and want to deduct the tax costs from education, you must not include them in the costs, ” explains Sean Colel .
Deduction for gifts
You are also entitled to a benefit if you have donated to individuals who , for example, provide health services, schools or abandoned animal protection facilities.
Tax deduction also applies to you if you have provided a legal entity, such as a public collector . Free blood or organ donation is also considered a gift.
The total value of the gift must be at least CZK 1,000 or exceed 2% of your tax base. In total, a maximum of 15% of the tax base can be deducted.