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Old 21.02.2013, 20:47
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Quellensteuer and health insurance premiums

Hi all,

Sorry if this was asked already, but I couldn't find this precise issue having been discussed before.

Does anybody know whether health insurance premiums are tax deductible and if so, how it works for those paying Quellensteuer?

I just received a statement of the health insurance premiums I paid in 2012, with the comment that "this statement will be useful for your tax return". Obviously I don't do a tax return, as I am taxed at source. So that got me thinking: if the Swiss deduct their premiums from their taxable income, is there a way for Quellensteuer-ers to do the same?

I wrote to the Zurich tax office to ask this, but didn't really understand the answer (I mean, I understand the language, just not whether the answer is yes or no...)
Es ist korrekt, dass diese Zusatzzahlung auch quellensteuerpflichtig ist. Es sind sämtliche geldwerten Leistungen an der Quelle zu besteuern. Die Krankenkassenprämien lassen sich aber steuerlich nicht berücksichtigen. Es können allein diese selbstgetragenen Krankheit- und Unfall-Kosten, welche 4 % des Bruttolohnes übersteigen, von den Steuern berücksichtigen zu lassen. In der Beilage sende ich Ihnen aber trotzdem einen Korrekturantrag. Eventuell haben Sie andere Rückerstattungsgründe, die Sie geltend machen wollen.
Of course, if health insurance premiums are not tax deductible, then the point is moot.
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Old 21.02.2013, 20:58
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Re: Quellensteuer and health insurance premiums

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Es ist korrekt, dass diese Zusatzzahlung auch quellensteuerpflichtig ist. Es sind sämtliche geldwerten Leistungen an der Quelle zu besteuern. Die Krankenkassenprämien lassen sich aber steuerlich nicht berücksichtigen. Es können allein diese selbstgetragenen Krankheit- und Unfall-Kosten, welche 4 % des Bruttolohnes übersteigen, von den Steuern berücksichtigen zu lassen. In der Beilage sende ich Ihnen aber trotzdem einen Korrekturantrag. Eventuell haben Sie andere Rückerstattungsgründe, die Sie geltend machen wollen.
Google translate:
It is correct that the additional payment is subject to withholding tax. There are taxable at all, anything of value at the source. The health insurance premiums can be taken into account but not tax. It alone can self-borne illness and accident costs, which exceed 4% of the gross salary to be taken into account by the tax. In attachment I send you but still a correction request. You may have other refund reasons that you want to argue.

Does that help?
JC
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Old 21.02.2013, 21:42
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Re: Quellensteuer and health insurance premiums

Not really - I understood the German, but nevertheless am none the wiser about whether premiums are tax deductible or not. Even in English it makes little sense.
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Old 21.02.2013, 21:45
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Re: Quellensteuer and health insurance premiums

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Not really - I understood the German, but nevertheless am none the wiser about whether premiums are tax deductible or not. Even in English it makes little sense.
They would be upto approx 2500 a year if you did a tax return & then paid normal tax. By doing a return your tax bill may increase or decrease as some assumptions are made which on average will be right in that Canton.
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Old 21.02.2013, 21:55
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Re: Quellensteuer and health insurance premiums

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They would be upto approx 2500 a year if you did a tax return & then paid normal tax. By doing a return your tax bill may increase or decrease as some assumptions are made which on average will be right in that Canton.
Thanks. So, probably not worth trying to make a rebate claim, then?
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Old 21.02.2013, 22:06
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Re: Quellensteuer and health insurance premiums

Health insurance costs are not deductible. If your excess and other uninsured health costs exceed 4 percent of your income that amount is deductible.
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Old 21.02.2013, 22:23
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Re: Quellensteuer and health insurance premiums

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Hi all,

Sorry if this was asked already, but I couldn't find this precise issue having been discussed before.

Does anybody know whether health insurance premiums are tax deductible and if so, how it works for those paying Quellensteuer?

I just received a statement of the health insurance premiums I paid in 2012, with the comment that "this statement will be useful for your tax return". Obviously I don't do a tax return, as I am taxed at source. So that got me thinking: if the Swiss deduct their premiums from their taxable income, is there a way for Quellensteuer-ers to do the same?

I wrote to the Zurich tax office to ask this, but didn't really understand the answer (I mean, I understand the language, just not whether the answer is yes or no...)
Es ist korrekt, dass diese Zusatzzahlung auch quellensteuerpflichtig ist. Es sind sämtliche geldwerten Leistungen an der Quelle zu besteuern. Die Krankenkassenprämien lassen sich aber steuerlich nicht berücksichtigen. Es können allein diese selbstgetragenen Krankheit- und Unfall-Kosten, welche 4 % des Bruttolohnes übersteigen, von den Steuern berücksichtigen zu lassen. In der Beilage sende ich Ihnen aber trotzdem einen Korrekturantrag. Eventuell haben Sie andere Rückerstattungsgründe, die Sie geltend machen wollen.
Of course, if health insurance premiums are not tax deductible, then the point is moot.
I am a bit confused about the answer, especially this part "diese Zusatzzahlung auch quellensteuerpflichtig ist." This sounds to me like your employer paid you an allowance for health insurance (which is taxabl like regular income).

Can you please post your question to the tax office?
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Old 21.02.2013, 22:47
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Re: Quellensteuer and health insurance premiums

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I am a bit confused about the answer, especially this part "diese Zusatzzahlung auch quellensteuerpflichtig ist." This sounds to me like your employer paid you an allowance for health insurance (which is taxabl like regular income).

Can you please post your question to the tax office?
I assumed the same thing. D
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Old 21.02.2013, 22:57
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Re: Quellensteuer and health insurance premiums

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Hi all,

Sorry if this was asked already, but I couldn't find this precise issue having been discussed before.

Does anybody know whether health insurance premiums are tax deductible and if so, how it works for those paying Quellensteuer?

I just received a statement of the health insurance premiums I paid in 2012, with the comment that "this statement will be useful for your tax return". Obviously I don't do a tax return, as I am taxed at source. So that got me thinking: if the Swiss deduct their premiums from their taxable income, is there a way for Quellensteuer-ers to do the same?

I wrote to the Zurich tax office to ask this, but didn't really understand the answer (I mean, I understand the language, just not whether the answer is yes or no...)
Es ist korrekt, dass diese Zusatzzahlung auch quellensteuerpflichtig ist. Es sind sämtliche geldwerten Leistungen an der Quelle zu besteuern. Die Krankenkassenprämien lassen sich aber steuerlich nicht berücksichtigen. Es können allein diese selbstgetragenen Krankheit- und Unfall-Kosten, welche 4 % des Bruttolohnes übersteigen, von den Steuern berücksichtigen zu lassen. In der Beilage sende ich Ihnen aber trotzdem einen Korrekturantrag. Eventuell haben Sie andere Rückerstattungsgründe, die Sie geltend machen wollen.
Of course, if health insurance premiums are not tax deductible, then the point is moot.
Not obvious - if you make more than 120,000 CHF on an annual basis, you also are expected to complete a tax return, in addition to Quellensteuer.
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Old 22.02.2013, 00:17
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Re: Quellensteuer and health insurance premiums

They are deductacle if you do a tax return up to CHF 2500. As mentionned before if you do a tax return you might end up having to pay more thanyou do know. If you live in Zurich don't do it unless you can claim serious deduction as the tax rate in Zurich (and Winterthur) is high and right now you pay an average rate. Do a search this has been coverdd before.
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Old 22.02.2013, 00:38
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Re: Quellensteuer and health insurance premiums

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Health insurance costs are not deductible.
Yes, they are.

Max is 10500 for a married couple (just checked the 2012 tax forms I got today)

Tom
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Old 22.02.2013, 00:58
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Re: Quellensteuer and health insurance premiums

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Yes, they are.

Max is 10500 for a married couple (just checked the 2012 tax forms I got today)

Tom
We are both right to some extent. They do count towards a maximum deduction item of 3500chf Federal and Cantonal 6400chf in SZ, maybe 10500chf in TI.

The other items that contribute to the calculation of this deduction are income on assets (ie the first x savings income is tax free), life insurance premiums, and accident and illness insurance.

So basically if your savings income doesn't eat up the deduction health and life insurance premiums can be deducted to use upto the allowance.
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Old 22.02.2013, 01:07
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Re: Quellensteuer and health insurance premiums

It does seem that the tax authority response thinks the OPs premiums are being paid by the employer and are a taxable benefit and then also obviously not deductible as the OP didn't pay them either.
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Old 22.02.2013, 09:20
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Re: Quellensteuer and health insurance premiums

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Thanks. So, probably not worth trying to make a rebate claim, then?
Depends. If you had 30k health costs in one year them filling in a tax form and claiming rebates would well be worth it.
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