How can you best handle the tax return? With our tips you have everything at hand and you get the most out of your income tax return. We’ll help you get around some of the pitfalls and give you a few important tips.
Create a tax return folder throughout the year. This can be done digitally, but can also be done in a binder or shoebox. Put everything you need in your declaration here, such as the annual statements from your employer, your benefits agency and bank. If you have a house, also the documents from your mortgage lender and the WOZ assessment for your home. And are you entitled to a deduction for commuting or a deduction for transport costs in connection with illness or a disability? Also keep notes about the travel kilometers.
Is reporting compulsory for me?
If you have received a declaration letter from the Tax and Customs Administration, declaration is mandatory. Even if you don’t have to pay anything or even get money back from the tax authorities. The tax authorities send the declaration letters in January and February. If you did not receive a declaration letter for 2019 before 1 March 2020, declaration is only mandatory if you have to pay more than € 46 tax. If in doubt, fill in the declaration and you will immediately see whether you are entitled to a refund. Read how it is exactly and why reporting it if it is not mandatory is often recommended.
When do you have to file a declaration?
You must send the tax return for 2019 to the Tax Authorities before 1 May 2020. Are you not getting this? Then you can apply for a postponement before 1 May until 1 September 2020. It is best to submit the declaration in the second half of March. Below you can read why.
Declaration preferably in March
If the Tax and Customs Administration received your tax return before 1 April, you will be notified by the tax authorities before 1 July 2020.
As a result, if you get a refund, this amount will be in your account no later than the first half of July. If you file your taxes return between 1 April and 1 May, the tax authorities will not guarantee that you will be notified before 1 July.
With a declaration in April, a refund may take longer and you will only have the disadvantage of this. The tax authorities no longer reimburse interest for a return. In recent years, the tax authorities have been able to send a message to most people who filed a declaration in April before 1 July.
Declaration after 1 May
If you only file the tax return after 1 May, you are much more likely to receive notification from the Tax Authorities after 1 July. If you then have to pay tax, you pay the interest on top of that. The tax authorities charge 4% interest (on an annual basis). It will run on July 1 and will only stop 6 weeks after the date on the assessment. If you file a tax return before 1 May and the Tax and Customs Administration imposes an assessment that corresponds to the amount to be paid or received in your tax return, you do not have to pay tax interest. If you have been granted a postponement, it is still beneficial to submit the declaration as soon as possible. The faster you file the tax return, the sooner you receive the assessment and the less tax interest you pay if you have to pay extra.
Second half of March ideal
Millions of Dutch people report this in the first week of March. But it has advantages to postpone the job for a week or 2. In the first weeks of March, the Tax and Customs Administration often detects and corrects errors in the online tax return. We therefore recommend reporting in the second half of March.