Started your first job last year? Then claim back your tax!
If you started working during the tax year, it is definitely worth submitting a "small" tax return (annual income tax adjustment).
Why this is financially worthwhile, taxx.lu explains here!
Your employer calculates your salary and automatically withholds taxes that you have to pay to the state. To simplify this calculation, it is simply assumed that you received the same salary for 12 months.
This is certainly not the case, however, if you did not start work last year on January 1, but only during the course of the year. If this is the case, the tax authorities must determine at the end of the year how much salary you received to calculate how many taxes you have to pay. This allows you to reclaim a large part of the taxes you have paid.
You (not married, no children) started work on July 1 and earn 2,500 EUR gross per month. Your employer withholds 153,20 EUR per month. This means that, from July to December, you paid 919,20 EUR in taxes. Through a "small" tax return (annual income tax adjustment) you inform the tax administration that you did not receive this salary of 2,500 EUR for 12 months, but only for 6 months (July to December).
After different lump sums are deducted (taxx.lu does this automatically for you) the state calculates that you would have had to pay only 74 EUR taxes. However, since you have paid 919.20 EUR in taxes, you can benefit from a refund of 845.20 EUR.
The state will not refund this money automatically. To claim your taxes back, you must file a "small" tax return.
How do you fill that out? The easiest way is taxx.lu! Do a free simulation now to find out how much tax you will get back.
By the way, taxx.lu is the only way in Luxembourg to do your tax statement in English.