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Old 24.01.2014, 13:05
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<120,000 CHF - Is it worth doing a tax return?

Ladies and gents...


I have heard conflicting reports of people in similar positions to me who have filed tax return...some have had refunds while others have had to pay more.

So, i wanted the opinion of the (hopefully more educated than me)masses. Is it worth me doing a tax return?

Salary <120,000/year (so paying quellensteur[sic])
Kanton Zurich
Single, no wife or family
Live very close to work
Travel frequently

If you need any more details, let me know.

Also, if you know of an english speaking acountant in the Wadenswil area, let me know too.

Thanks.
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Old 24.01.2014, 13:16
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Re: <120,000 CHF - Is it worth doing a tax return?

my personal view is, if you don't need to file a tax return, why deal with the hassle?
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Old 24.01.2014, 13:21
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Re: <120,000 CHF - Is it worth doing a tax return?

To be honest, its the extra tax i paid on the Mid year bonus, and the 13th month that i want to claim back (as well as any other potential expenses). For a while i was commuting 200km a day too.

Between the three, the sum is a good few hundred chf.
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Old 24.01.2014, 13:28
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Re: <120,000 CHF - Is it worth doing a tax return?

Check if your Kanton has a simplified tax form for people who are subject to Quellensteuer. BS has one and it is much less hassle than the full form.
You can also claim any Pillar 3a or additional Pillar 2 contributions on this form.
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Old 24.01.2014, 13:30
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Re: <120,000 CHF - Is it worth doing a tax return?

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To be honest, its the extra tax i paid on the Mid year bonus, and the 13th month that i want to claim back (as well as any other potential expenses). For a while i was commuting 200km a day too.

Between the three, the sum is a good few hundred chf.
You can't "claim back" the 13th month!!(?), it's usually a trick to spread your annual salary into 13, paying less if you leave the company before the end of the year, and yet making it look like you have a higher annual salary.

Some cantons, I think like Zurich, one can not do tax return if income less than 120K/year. Some other one can do "simplified declarations" (ex: Vaud) but you can not do "as normal person declaring full", you're limited to whatever the canton has decided for this tax year.

Check the Zurich website, i'm sure it's all explained.

PS: by default the a la source already include a default value of deductions. For example, everyone a la source already get a few CHFS removed for transportation. Although with your own commuting, i'm sure you're over that "default value". (Again it's true for Vaud, but other cantons might be different).

Finally, I've heard a few who ended up having to pay more taxes than they had received so make sure you do calculations right.
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Old 24.01.2014, 13:35
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Re: <120,000 CHF - Is it worth doing a tax return?

Well, I can describe the situation is VD:


- you cannot choose to do the (full) tax declaration. They have to send you one. You can ask, but they have to agree that it's corrent that you do the full tax return. Generally they have some rules: eg own property, move to permit C, or have very special circumstances: salary over 120k, fortune over 65k/120k excl. real estate, income from investments over 30k etc. Just because normal taxation is lower than tax at source is not a valid reason.


- so the question is likely to be hypothetical. If you do have a choice, the two systems use totally different calculations, so you either get a big refund or big bill. Generally, you'd need to ask an accountant, but the biggest parameter is the Town you live: normal taxation varies from town to town in the same canton, (whereas tax at source is calculated as the 'average' tax among all towns) so if you live in the most expensive town of ZH then tax at source is lower and vice versa. But most likely not much you can do, as you cannot freely change between the two taxation systems. [OF couse, if you ask the canton to do a tax declaration, and they see that you will end paying a LOT more, they may actually accept your demand and send you a tax form..]


- Some cantons have a 'simplified declaration' for people taxed at source. This is NOT normal taxation. The rules/formulas used are those for tax at source. The form is to ask for additional deductions to be included in the calculation (which have not already been included in the tax at source rates). These are contributions to 2 pillar (buy extra years), 3 pillar, and anticipated tax for bank interest, lottery wins etc. Traval to work doensnt count as it's already included (average case) in the tax at source rates. Doing that form (if it applies to you) enables you to get a refund.


PS: BTW, dont imagine that people who do tax returns get the cost of 200km travel back. The max here, is 40km per day and for that you get a deduction of 3k, i.e., a tax reduction of ~40CHF per month (450 per year or so). If you do have to travel that much for work, then it's work who should be re-imbursing you.

Last edited by slingb; 24.01.2014 at 13:53.
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Old 25.01.2014, 14:33
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Re: <120,000 CHF - Is it worth doing a tax return?

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To be honest, its the extra tax i paid on the Mid year bonus, and the 13th month that i want to claim back (as well as any other potential expenses). For a while i was commuting 200km a day too.

Between the three, the sum is a good few hundred chf.
check your calculations. someone else on here did the same thing and found out that he had to pay a lot more tax not just for this year, but for all future years where he had to file a tax return.
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Old 25.01.2014, 15:14
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Re: <120,000 CHF - Is it worth doing a tax return?

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check your calculations. someone else on here did the same thing and found out that he had to pay a lot more tax not just for this year, but for all future years where he had to file a tax return.
Bear in mind that Wädenswil (I'm assuming that is your Gemeinde based on your post...) is a fairly high tax Gemeinde. QS is figured on the cantonal average so you are likely getting taxed at a lower rate on QS than you would be on normal taxation - and the difference due to Steuerfuss can be significant.

Seriously - as Phil says, run the numbers. There are various calculators out there, plug in your actual figures before going further. You might find that you are better off on QS, even without the deductions you wish to take.
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Old 25.01.2014, 16:23
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Re: <120,000 CHF - Is it worth doing a tax return?

I would say do it if you have tax deductible contributions, in which case your local Finanzverwaltung can help you with exactly what can be claimed.

Other than that, it shouldn't really matter whether you filed your tax report or not on withholding tax. The revenue services should already be well informed about your deductions by employer. What you might miss on is opportunity of claiming e.g. alimony, donations, savings account interest 35% and etc.

By filing a report you do not really get exposed because they should have it all black on white all the figures anyway, unless they made a mistake somewhere If you for instance declared confession as a believer and didn't get taxed yet, it will come like a surprise one day (sometimes only after de-registering from community)

Why not hire a tax consultant once and go through it together?
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Old 25.01.2014, 18:34
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Re: <120,000 CHF - Is it worth doing a tax return?

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Well, I can describe the situation is VD:


- you cannot choose to do the (full) tax declaration. They have to send you one. You can ask, but they have to agree that it's corrent that you do the full tax return. Generally they have some rules: eg own property, move to permit C, or have very special circumstances: salary over 120k, fortune over 65k/120k excl. real estate, income from investments over 30k etc. Just because normal taxation is lower than tax at source is not a valid reason.


- so the question is likely to be hypothetical. If you do have a choice, the two systems use totally different calculations, so you either get a big refund or big bill. Generally, you'd need to ask an accountant, but the biggest parameter is the Town you live: normal taxation varies from town to town in the same canton, (whereas tax at source is calculated as the 'average' tax among all towns) so if you live in the most expensive town of ZH then tax at source is lower and vice versa. But most likely not much you can do, as you cannot freely change between the two taxation systems. [OF couse, if you ask the canton to do a tax declaration, and they see that you will end paying a LOT more, they may actually accept your demand and send you a tax form..]


- Some cantons have a 'simplified declaration' for people taxed at source. This is NOT normal taxation. The rules/formulas used are those for tax at source. The form is to ask for additional deductions to be included in the calculation (which have not already been included in the tax at source rates). These are contributions to 2 pillar (buy extra years), 3 pillar, and anticipated tax for bank interest, lottery wins etc. Traval to work doensnt count as it's already included (average case) in the tax at source rates. Doing that form (if it applies to you) enables you to get a refund.


PS: BTW, dont imagine that people who do tax returns get the cost of 200km travel back. The max here, is 40km per day and for that you get a deduction of 3k, i.e., a tax reduction of ~40CHF per month (450 per year or so). If you do have to travel that much for work, then it's work who should be re-imbursing you.

I have had on average 15k of deductions a year for car expenses over the last 5 years driving to work. & that's just part time work. I don't know where your 3k limit comes from.
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Old 25.01.2014, 19:19
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Re: <120,000 CHF - Is it worth doing a tax return?

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I don't know where your 3k limit comes from.
just a plan.

http://www.aargauerzeitung.ch/schwei...mung-127482975
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Old 25.01.2014, 20:17
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Re: <120,000 CHF - Is it worth doing a tax return?

I guess people will just go to the RAV instead of working, sad really but that will be the direct consequence.
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