Sponsored ContentTax return mystery: How can you optimise your taxes?

Tax forms are now available. Do I have to file a tax return, what expenses can I deduct, and who can help me? The LCGB answers the most important questions.

Do I have to submit a tax return?

In general, people in tax classes 1 and 1A can submit a voluntary tax return to claim deductible expenses. However, they must declare all their income (in their country of residence and in third countries).

Whether you are resident or non-resident, you are required to submit a tax return if

• your taxable income of over €100,000;
• there is a combination of several incomes (wages or pensions) and a combined amount exceeding €36,000 for taxpayers in class 1 and 2, and exceeding €30,000 for taxpayers in class 1A. The same holds true for non-resident households;
• you are married non-resident taxpayers who have opted for joint taxation, which has been recorded on your tax card;
• the taxable income exceeds €11,265 and includes more than €600 of income which are not levied at source by the ACD;
• the taxable income includes more than €1,500 of the income which is subject to withholding tax on income from movable assets;
• you are married and you are not effectively separated, one being a resident and the other a non-resident, and your income is taxed jointly;
• your taxable income includes more than €1,500 of net income subject to withholding tax on income from royalties;
• you have been obliged by the Direct Tax Administration to submit an income tax return.

Why file a tax return if you are not obligated to do so?

In certain cases, a tax return can lighten your tax burden. For example:

• in order to deduct certain costs such as special expenses
  (e.g. contributions to a building savings scheme and insurance premiums, interest on debit balance from a consumer loan, annuities paid in relation to a divorce, donations made to organisations working in the public interest or non-governmental development organisations, etc.) or one-off costs (medical, disability expenses to be paid by the taxpayer, etc.);
• when tax is levied at source on investment income
  (e.g. share dividends, bond coupons, etc.);
• when there is a loss of income
  (e.g. in the case of negative net income from renting a property).

Is there a deadline for submitting tax returns?

The completed tax return must be submitted by 31 December of the current year. This deadline applies both to persons who are required to submit a tax return and to those who do so voluntarily. The LCGB recommends that you complete your tax return as soon as possible so that you receive your refund promptly.

The LCGB will inform you about the best option for your personal situation as well as about the various allowances and offers its members (> 6 months membership) free help in completing their tax return.

https://lcgb.lu/fr/assistance-en-vie-privee/services-fiscaux-du-lcgb/