In which cases is it important to file a return?

Stefanie, a 31-year-old single person living in Luxembourg, has already filed a tax return. "I mentioned my car and home insurance. I received a letter from the tax authorities informing me that the amount of my direct contributions remained unchanged. I have since understood that only civil liability and personal protection are deductible. So my insurance premiums were too low to change my tax base.
So... In which case is it really worth it?
Mortgages, pension plans, life insurance or personal loans, “all investment or pension expenses involving significant sums of money should be declared” explains Viviane Jeblick, who coordinates the advice and assistance service for employees within the OGBL, the biggest trade union in Luxembourg.
Single parent or newcomer
“Moreover, there are two situations for which it is particularly advisable to file a tax return,” adds Viviane Jeblick. The first one concerns single parents who raise their child and who can benefit from the Single Parent Tax Credit of € 750.
The second situation concerns persons who started a professional activity in Luxembourg during the tax year. In this case, the tax has been calculated on the basis of a full year and the return allows you to obtain the adjustment.
Hesitating to file a return?
“One thing is certain," continues Viviane Jeblick, "there is no tax saving without a return” so it is better to file your tax return and aim for the right surprise!
Need help? Accounting firms offer to prepare your tax return and follow it up with the tax authorities. It will cost you about € 250.