(edit title) Tax Credits for travel Commuting to work Options

[Kegzmc]

Hi all,

Does anyone know if their is any tax exemptions for travel in Sweden? I travel to work by train each day. Its only one hour each way and train ticket is not expensive at approx 1600kr a month. I'm just curious to see if there are some form of tax credits against this?

Regards,

Keggles

[teslar]

You can deduct commuting costs above 9000SEK/year from your taxable income. Keep all receipts in case you're audited and refer to your tax form for details.

[Yorkshireman]

Quick answer is No.

If you drove to work then if you save 1 hour each way when compared to public transport you can claim the cost back, but only the amount after 10.000:- in 2012 ie. You subtract 10.000 from your costs and claim the remainder. But nothing for public transport. Unless... it is a assignment away from normal work place, and Your employer does not pay the travel.

[teslar]

Yorkshireman: quick answer is, as I said before, yes

Resa till och från arbetet

Som regel krävs det att avståndet är minst två kilometer mellan bostaden och arbetsplatsen för att avdrag ska kunna göras.

Avdrag medges för:

• De utgifter du haft för t.ex. kollektivtrafik eller lösa biljetter. Endast den del av utgifterna som överstiger 9 000 kronor är avdragsgill inkomstår 2011, 10 000 kronor inkomstår 2012.
• Du som har tillstånd till färdtjänst kan få avdrag för dina utgifter för färdtjänstresor till och från arbetet oberoende av avståndet mellan bostaden och arbetsplatsen. Du kan dock bara få avdrag för resor till och från arbetet för den del av dina utgifter som är högre än 9 000 kronor inkomstår 2011, 10 000 kronor inkomstår 2012.

(emphasis mine; note that the new limit indeed appears to be 10 000 though)

[Yorkshireman]

Oh Yes!. Apologies, silly Me, had the car rules in my head.

They increased the threshold mainly due to ticket prices rising in Stockholm for the monthly card, to avoid too many credits been given.

[Yorkshireman]

Meant to add, it is not really a tax deduction, it is calculated as an income reduction before tax. Subtle difference.

Simple number example, using your 1600 per month. eg.
You earn 100.000 in 2012
With no travel deduction, tax is calculated on the 100.000

You earn 100.000 in 2012
Travel costs = 11 x 1600 = 17.600 (why 11?, well using 4 weeks vacation minimum, theoretically you cannot claim travel to work during vacations )

On tax declaration for 2012, you enter 100.000 for salary, plus 17.600 for travel to work cost
Tax office calculate Income = 100.000 - (17.600 - 10.000) = 92.400

Your final tax is calculated on an Income of 92.400

The difference is with the travel expenses you pay around 1600:- less tax in this example. It's almost like receiving back the VAT (Moms) for the travel costs. The real final result depends upon your total income and tax percentage etc...

The higher your salary/tax percentage, the more of the travel costs are recovered!

[Kegzmc]

Hi Yorkshireman,

Thank you so much for explaining that to me. I understand now almost. Where did the 10.000 figure come from? The one you subtract from the travel cost 17.600?

Do I need to do anything now or wait until end of year until I recieve my tax forms?

Should I keep any reciepts?

[teslar]

I understand now almost. The one you subtract from the travel cost 17.600?

Commuting costs up to 10 000 are assumed for everyone when calculating taxes, whether you use them or not. So you can only deduct costs above that threshold.

Do I need to do anything now or wait until end of year until I recieve my tax forms?

Wait until you get the tax forms. There'll be a box where you fill in your commuting costs - do that and you're good.

Should I keep any reciepts?

Absolutely. You don't need to submit them but you have to be able to produce them upon request.

[rtharper]

Meant to add, it is not really a tax deduction, it is calculated as an income reduction before tax. Subtle difference.

That is the very definition of a tax deduction. Something that reduces the amount of income that is taxed.

A crown for crown reduction of assesed taxes is a tax credit.

[aliraza.jibs1]

I have a question. I am travelling from Jönköping to Göteborge for work every day via car. From public transport from door to door it cleary save more then 3 hours round trip. Do i need to keep recipts of my fule as i pay it via credit card and throw the pump recepits away. I am unable to get appartment in Göteborge i.e. offcial one with my name and i have registered appartment in Jönköping (which i will intent to keep even after i have an appartment in Götebörg). The only thing avaliable in göteborg is from black market. If i get it i will not be able to give proof of rent so would it be okay to use travelling deduction.

[Yorkshireman]

Keep the receipts just in case, but You cannot claim the actual fuel costs.

There is a fixed rate for personal cars of 18.50 SEK per 10Km, if you have a company car the rate is lower. And if using your own private car You can also include in the total cost the trängselskatt.

[aliraza.jibs1]

@ thanks York but what about my 2nd question. I know about the fixed rate of 18.5 per swedish mile and trängselskatt will be introduce next year in Göteborg so for Decleration 2011-2012 it will not be effective.

[Yorkshireman]

The only thing avaliable in göteborg is from black market. If i get it i will not be able to give proof of rent so would it be okay to use travelling deduction.

With the assumption You are asking ... Does the tax office expect Me to move to Gothenburg, or can I stay where I am now and include in the declaration the cost of driving.

As far as I am aware there is absolutely no requirement to move according to the tax office. The original purpose of the tax credit for travel costs was a political motivation that it creates a mobile workforce
It should be no problem to claim the travel costs, assuming You are travelling

Mind You, when I was living in the UK the tax office would just laugh and say, move closer to work! You choose where You live, and You choose where You work!

[aliraza.jibs1]

Thanks you have been great help