Posted on 03 March 2025
Did you receive a letter from the Luxembourg Tax Authorities ?
The simplified tax return may cost you more! Ensure you’re not overpaying and optimize your deductions easily with taxx.lu.
The Luxembourg Tax Authorities (Administration des contributions directes - ACD) may have recently invited you to opt for the simplified tax return. While this might seem like a convenient option at first glance, it’s important to understand the potential implications before making a decision. This choice could lead to a higher tax burden if key deductions are overlooked. Here’s what you need to know before deciding.
Is the simplified tax return really beneficial?
Opting for the simplified tax return means you’ll receive a pre-filled form that only includes your salary or pension income—without considering any tax deductions you might be entitled to. That means crucial deductions, such as loan interest or insurance contributions, might be excluded. As a result, your taxable income could be higher, leading to increased taxation.
A double-edged option
While the simplified process may seem faster and less complex, it could cost you more in the long run. By accepting it, you forfeit the opportunity to declare deductible expenses, which could significantly reduce your tax bill. Even if your deductions seem minimal, it’s always worth verifying if they could help lower your tax burden.
A decision worth thinking about
The choice is entirely yours. If you believe that your tax deductions could make a difference, it may be more beneficial to decline the simplified return and opt for the standard tax declaration instead.
Why choose taxx.lu?
At taxx.lu, we help you optimize your tax return and maximize your deductions. Our expertise ensures that your tax return is accurate and optimized, helping you avoid overpaying taxes. Don’t let a simplified tax return cost you potential savings. Choose a professional and transparent service that makes tax filing easy and helps you keep more of your money.
