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  #21  
Old 06.12.2018, 08:27
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Re: Tax return question

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Maria, .....

JON only has 60k salary income during the year, but he paid withholding like (in theory) will be 120k. Should receive de difference back, or is calculated on monthly basis (so not like Maria)?
You seem to talking about the concept of a TFA (tax-free-allowance) which exists in many EU countries. Each you the individual gets an amount after which they start to pay income tax i.e. gross minus TFA. Switzerland does not really have that concept.

Basically if you must have with holding tax deducted (e.g. B permit):
Each month the amount is based on the monthly gross salary and the rate is a cantonal mean defined by the canton for you circumstances (single, kids, religion).


--THEN--


Annually, if you earn >120K you MUST make a tax return and can apply allowances and the calculations are based on the time in CH. Whether you get a rebate or not depends on your personal circumstances and and your WORLDWIDE assets. You should download your cantons tax software and play with it!

If you earn <120K you may have the option to claim 'some' allowances back e.g. Pillar3, but that and the process is canton specific.
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  #22  
Old 06.12.2018, 09:24
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Re: Tax return question

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The first one hurts and its a tradition to get it from Tom.

Got one this week as well. Do not even know why:
https://www.englishforum.ch/transpor...at-expect.html
Fixed it, I missed the thanks button!

Tom
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  #23  
Old 06.12.2018, 14:55
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Re: Tax return question

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Switzerland is a very federalist country. There is a federal, cantonal, and a communal tax. The communal tax can vary quite a bit inside one canton. Zurich has a tax rate which is above the cantonal average.

On the other hand the tax at source is the same for any commune in the canton. It should be an average of all communes. Tax at source also includes flat rate deductions. A big deduction are the travel expenses to work. If you work in the same commune your actual travel expenses (12 time a 2 zone monthly pass) is much lower than the assumed expenses.
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You seem to talking about the concept of a TFA (tax-free-allowance) which exists in many EU countries. Each you the individual gets an amount after which they start to pay income tax i.e. gross minus TFA. Switzerland does not really have that concept.

Basically if you must have with holding tax deducted (e.g. B permit):
Each month the amount is based on the monthly gross salary and the rate is a cantonal mean defined by the canton for you circumstances (single, kids, religion).


--THEN--


Annually, if you earn >120K you MUST make a tax return and can apply allowances and the calculations are based on the time in CH. Whether you get a rebate or not depends on your personal circumstances and and your WORLDWIDE assets. You should download your cantons tax software and play with it!

If you earn <120K you may have the option to claim 'some' allowances back e.g. Pillar3, but that and the process is canton specific.
Thanks for all your answers.

Last question: assuming JON is earning slightly less then 120k, so is not obliged to do tax returns. As far as I understood, he has the option to claim back/adjust some taxes (due to all allowance/3rd pillar and so on). Is possible to have the next-year tax withholding tax "better calculated", e.g. already including the 3rd pillar, or JON has to wait the end of the year and claim again?

Do you have some website/direct link (English is much appreciated) where JON can eventually fill the claim?

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TLDR, but JON & MARIA should get married.
You know, sometimes distance can be a problem.
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  #24  
Old 06.12.2018, 14:57
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Re: Tax return question

Wait until the end of the year and check out Zurich Steueramt, you can find the relevant documentation there (and also to file your taxes online or download the software)
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Old 06.12.2018, 15:04
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Re: Tax return question

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Last question: assuming JON is earning slightly less then 120k, so is not obliged to do tax returns. As far as I understood, he has the option to claim back/adjust some taxes (due to all allowance/3rd pillar and so on).
See here. Please observe timelines and be patient as it can take up to 18 months. https://www.steueramt.zh.ch/internet...kblaetter.html

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Is possible to have the next-year tax withholding tax "better calculated", e.g. already including the 3rd pillar, or JON has to wait the end of the year and claim again?
No, not possible. The "better calculated" part can be done once you are no longer subject to tax at source or Sicherungssteuer. In case of canton Zurich it is your very own responsibility to plan and pre-pay the taxes owed.

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Do you have some website/direct link (English is much appreciated) where JON can eventually fill the claim?
Sorry. This is the German speaking part of Switzerland. Nearly all official forms are only available in German. But I can point you to deepl.com which produces less gibberish than Google translate does.
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  #26  
Old 06.12.2018, 15:08
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Re: Tax return question

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Switzerland is a very federalist country. There is a federal, cantonal, and a communal tax. The communal tax can vary quite a bit inside one canton. Zurich has a tax rate which is above the cantonal average.

On the other hand the tax at source is the same for any commune in the canton. It should be an average of all communes. Tax at source also includes flat rate deductions. A big deduction are the travel expenses to work. If you work in the same commune your actual travel expenses (12 time a 2 zone monthly pass) is much lower than the assumed expenses.
Sorry again on this point, let's go a bit deeper here please.

JON has travel expenses of 1500/year (125frx12).
The extra bill you were talking (let's call "adjustment bill") will come anyway or only if JON claims back something, so they recalculate everything with real numbers and not with "assumed expenses"?

JON at this point is trying to understand if is worth to put money in 3rd pillar and eventually call tax back, otherwise an ETF will have better chances.
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  #27  
Old 06.12.2018, 15:12
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Re: Tax return question

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Sorry again on this point, let's go a bit deeper here please.

JON has travel expenses of 1500/year (125frx12).
The extra bill you were talking (let's call "adjustment bill") will come anyway or only if JON claims back something, so they recalculate everything with real numbers and not with "assumed expenses"?

JON at this point is trying to understand if is worth to put money in 3rd pillar and eventually call tax back, otherwise an ETF will have better chances.
What travel expenses? You can deduct cost for a car or public transport.

JON or you should just visit or call the Steueramt as nobody here can decide what is best.

Keep in mind that there are several other items that are part of the tax calculation. Unless you wish to state what accounts you have abroad or here, if you own a house/flat, if you have further income elsewhere, best to contact the Steueramt.

And if JON/you could list all questions, it would be easier to answer them all in one go?
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  #28  
Old 06.12.2018, 15:14
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Re: Tax return question

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What travel expenses? You can deduct cost for a car or public transport.

JON or you should just visit or call the Steueramt as nobody here can decide what is best.

Keep in mind that there are several other items that are part of the tax calculation. Unless you wish to state what accounts you have abroad or here, if you own a house/flat, if you have further income elsewhere, best to contact the Steueramt.

And if JON/you could list all questions, it would be easier to answer them all in one go?
Perfect, JON will. Thanks. 125fr x12 of public transport.
Still not totally clear if the "end of year adjustment" will come anyway or only if JON claims. And in the case "only if JON claims", the assumed deduction on his actual withholding tax will be confirmed?
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  #29  
Old 06.12.2018, 15:20
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Re: Tax return question

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Perfect, JON will. Thanks.
Still not totally clear if the "end of year adjustment" will come anyway or only if JON claims. And in the case "only if JON claims", the assumed deduction on my actual withholding tax will be confirmed?
Again, that depends on several points. You HAVE to declare taxes if you earn more than 120k p.a.

And no, if it is below 120 k there will not be an automated adjustment.

What confirmation are you looking for? You will get a final tax bill, either you get money back or you pay. All depends on what your world wide income and assets are.
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Old 06.12.2018, 15:27
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Re: Tax return question

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Again, that depends on several points. You HAVE to declare taxes if you earn more than 120k p.a.

And no, if it is below 120 k there will not be an automated adjustment.

What confirmation are you looking for? You will get a final tax bill, either you get money back or you pay. All depends on what your world wide income and assets are.
We're supposing <120k.

Probably I'm stupid, sorry, but still not totally following you. There will not be an automated adjustment BUT I will receive final tax bill with adjustment? Is the opposite. Will JON receive this bill automatically with adj or not? And regarding transports, for example, if they assumed more costs than reality, it will lower the deduction to how much if JON doesn't claim?

For what I understood: they do withholding tax with some "expected expenses". If you don't claim nothing, end of the year will be flat.
If you claim something, they need to recalculate everything and send the final bill.

BUT

if the expected expenses are higher then real, them will be lowered due to your claims. Furthermore, you add some new claims (3rd pillar), with the risk you do all the movements without saving nothing. I mean, e.g. make no sense to claim 6.5k of 3rd pillar if they lower my deduction for transport from an "expected" 3k to a "real" 1.5k... Better accept the "expected" and don't claim 3rd pillar?
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  #31  
Old 06.12.2018, 15:30
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Re: Tax return question

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We're supposing <120k.

Probably I'm stupid, sorry, but there will not be an automated adjustment BUT I will receive final tax bill with adjustment? Is the opposite. Will JON receive this bill automatically with adj or not?
Below 120k nothing happens, no bill, no filing, nothing. You taxes are deductly monthly.

Unless you ask to file because you have a pillar 3 or something else that can be deducted.
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  #32  
Old 06.12.2018, 15:34
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Re: Tax return question

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Perfect, JON will. Thanks. 125fr x12 of public transport.
Still not totally clear if the "end of year adjustment" will come anyway or only if JON claims. And in the case "only if JON claims", the assumed deduction on his actual withholding tax will be confirmed?
If the income is above the 120k limit JON will get. It is all those here: https://www.steueramt.zh.ch/internet...kblaetter.html
or for the computer
https://www.steueramt.zh.ch/internet.../software.html
In this case everzthing will be reassed using actual numbers, total global wealth at Dec. 31, total global income during stay in Swittzerland, actual expenses (some are still flate) etc. etc.

If it is bellow 120 k JON can request. In this case it is only one form and simpler. If JON only claims pillar 3a or pillar 2, then there is no need to reassess the travel costs.
https://www.steueramt.zh.ch/dam/fina...ng_2017_v4.pdf

Note, this are the 2017 forms. The 2018 forms will be available around late January 2019.

It can be in the summer or fall until the full tax declaration documents arrive the first time. If JON paid into pillar 2 or 3a, wants to get an adjustment but is unsure if he should get the full one or can only use the short one, then he should get in contact with the tax people before the deadline for filling the short form. Or if that fails at least provisionally file the short form before the deadline.
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  #33  
Old 06.12.2018, 15:42
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Re: Tax return question

Oh! OK!

Thank you, now I got it.

Gonna explain to JON.
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