We’re getting closer to the end of the year, which means it’s time to look at the last few optimizations to your taxes before the deadline.

  1. Optimize your pensions: The last chance for optimizing your pensions, e.g. an extra payment or two, is the 28th of December. I’ve recently made an overview of the different types and limits of pensions.
  2. Deposit outstanding tax: If you’ve paid too little tax during the year, you can make an extra deposit now to avoid interest and other percentages courtesy of SKAT.
  3. Craftsman deduction: Håndværkerfradraget is a small sum of 12.000kr (2018) that’s deductible for any salary paid for service and maintenance of your home and 6.000kr for services. A married couple can deduct 36.000kr.
    Check skat.dk for services, maintenance and repair work falls into which category of deductible.
  4. Give to charity: Up to 15.900kr in donations is deductible in 2018, for approved charities. In order to get the deductible, you’ll have to provide the charity with your social security number so that they can inform SKAT of your donation.
  5. Give to the family: You can gift your nearest family up to 64.300kr tax-free. The amount is per person, so parents can give each of their children 128.600kr. Search Google for what qualifies for the nearest family as it might not be what you expect.
  6. Invest in Limited Partnerships: Investments in Limited Partnerships (“anpartsprojekter”) provides tax deductions, but do be careful and remember an advisor before signing anything.
  7. Sell stocks with losses: Selling stocks sitting at a loss can offset the tax for dividends and gains on other stocks
  8. Tax-free travel allowance: Transport to and from work (“befordringsgodtgørelse”) is partially deductible if you have longer than 12km to work. You can get reimbursed costs for driving in your own car in connection with work if the employer carries out the necessary checks.
  9. Check your preliminary statement for 2019: Checking your preliminary statement for 2019 and making sure that e.g. your salary isn’t way off, ensures that you don’t pay way too much or too little tax during the year, ending up with either a large bill at the beginning of 2020 or get a ton of money back that’s been accumulated by SKAT at low to zero interest.