Posted on 05 February 2025
Costly traps of Luxembourg’s pre-filled tax return (and how to avoid them)
The pre-filled tax return does not take into account certain deductions such as insurance or property costs. taxx.lu makes it easy to optimize your taxes.
Pre-filled tax returns are presented by the government as a practical solution to simplify the administrative procedures for taxpayers. However, this ‘simplification’ hides a number of limitations that could cost you dearly.
In fact, this simplified tax return could result in you paying more taxes than you should.
Your deductions are not taken into account
The new pre-filled return is designed to contain only your salary and/or pension income.
Let's say you've taken out a new insurance policy that would allow you to reduce your taxes, but you had no idea you can deduct it on your tax return. Unfortunately, there will no information or indication on the pre-filled return about this possible deduction.
Your deductions as a homeowner are not taken into account
Tax authorities will not tell you what expenses you can deduct following the purchase of your main residence in Luxembourg or abroad.
If you acquired your property during the tax year, you can take advantage of significant deductions on your tax return. As a homeowner, you can deduct the interest on your mortgage, as well as your notary's fees for opening a loan on your tax return, which can have a significant impact on the amount of tax liability or refund.
So don't let the tax authorities make you pay more taxes than you should.
With taxx.lu, you are guided and informed step by step making the filling-in process easier and ensuring you don't forget anything. Furthermore, you can take advantage of tax optimization advice once you've completed your tax return, so you can benefit from a tax reduction the next time you file. Our support team is also available by chat and email (help@taxx.lu) to answer all your questions and guide you through the process.
Does the amount of taxes claimed by Tax Authorities seem too high, or the refund seem too low? With taxx.lu’s Plus, Premium, or Platinum packages, you’ll benefit from a review of your tax assessment and, if needed, we'll prepare an appeal letter to send to your tax office.
