Why is it wise to reinvest your income tax refund in your future right away? Because it’s just such a great way to take that first step without having to give up any of your regular income.
Whether you’ve been putting off getting started with investing or already have a plan, don’t forget the basics. Before considering any other options, make the most of the tax advantages offered by the pension pillars.
Opening pillar III takes a few minutes and costs nothing. Thanks to the tax advantage, pillar III isn’t just a great tool for saving for retirement, but also for achieving your other long-term goals. For every 1,000 euros you invest in pillar III today, the state will refund 220 euros in income tax. Make your first investment as soon as you receive your income tax refund. Once you’ve taken that motivating first step, set up a monthly standing order on Tuleva’s website to keep growing your portfolio with determination.
All of us saving in pillar III with Tuleva will, together, will receive nearly 15 million euros back from the state in 2024!
Already saving in pillar III?
Don’t forget to submit your income tax return. You’ll see the contributions you made last year automatically in point 9.2. You can transfer your income tax refund to pillar III right away, so it can start growing.
Note that if you made a contribution in the last few days of the year, it’ll probably not appear on your pre-filled income tax return and you should add the contribution amount to your return manually.
In this case, make sure the same contribution isn’t duplicated in next year’s income tax return. If necessary, you’ll need to reduce the pre-filled contribution amount accordingly. The Tax and Customs Board may also request proof of the payment date – for this you can submit, for example, the payment order or a bank statement. You can view the amount of your contributions made in 2023 by logging in to your pension account on Tuleva’s website:
Log in to your pension account
Sometimes, you might wonder why your income tax refund amount differs from what you calculated based on your pillar III contributions and expected to receive. Keep in mind that the refund amount – or the amount of any additional tax due – is calculated based on all declared sources of income and tax credits combined. This means that your income tax refund amount is also influenced by factors such as how much of your tax-exempt income limit you’ve used, tax deductions for training expenses or home loan interest, additional tax obligations related to investments, and more.
The easiest way to check your income tax refund amount is to open the detailed calculation of your tax return, where you can see, line by line, which tax credits have been applied and in what amounts, as well as where additional tax obligations have arisen. For more detailed information on the calculation of income tax and declaring your income, contact the Tax and Customs Board directly.
Here you’ll find our answers to the most frequently asked questions about pillar III. For further information, feel free to contact us by email at [email protected] or by phone at 644 5100.
