Tips to save taxes by the end of the year

The end of the year is approaching and with it the end of the fiscal year. With our tips, you can reduce your tax burden for the tax year 2020.

Payment into the third pillar

Pillar 3a not only improves your retirement provision but also allows you to save taxes, as the contributions can be deducted in your tax return. Employees can pay a maximum of CHF 6826 into the third pillar in 2020. For self-employed persons or individuals without a pension fund, the maximum amount is CHF 34,128. Next year, these amounts will be increased to CHF 6883 for employees and CHF 34,416 for self-employed persons, respectively. So if you haven't paid anything or only a portion of this amount yet and still have some money set aside, you can still make a payment now and save on taxes.

Deduct education and training costs

For several years now, the costs for career-oriented education and further training, which have been paid by oneself, can be deducted up to the amount of CHF 12'000 in the tax return. An IT professional is well advised to keep the receipt for the attended IT training to be able to deduct the costs in the tax return. However, costs for a barbecue course attended in the summer can only be deducted if you work in the hospitality industry. If you attended an education or training course related to your professional activity this year, you can reduce your taxable income by the incurred amount.

Donations

The Christmas season is the time to do good, and many people like to donate to charitable organizations. If the donation goes to a Swiss non-profit organization, it is also deductible. So you do good and can save taxes at the same time.

Buying into the pension fund

Experience shows that many employees have a pension gap. Contributions into the pension fund to close this gap can also be deducted for tax purposes. On your pension fund statement, you will find the section "maximum possible purchase amount". So if you have a pension gap and also have some money on the side, it pays to invest at least a part or even the maximum amount of this amount.

Are you unsure which costs you can deduct? Or do you find filling out the tax return too complicated? - The experts from Taxea.ch will help you quickly and easily.

We wish you a merry holiday season!

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