tax problem with Vaud authorities

Finance, Taxes, Banking, Insurance and Retirement
21
The problem OP has ist "over" as he is at exact 120k.

If the Vaud tax regulation is similar to the one in Zurich (my French is not so good):

- 120k means gross income. (Before AVS/AHV, Tax, Insurance, Pension)

- 120k means income per calendar year. If you were Switzerland only part of the year your income gets extrapolated to the whole year. This will also be used for calculating tax rate. Actual tax will only depend on actual income.

- Once over 120k means you have to file a tax return for the rest of your life.

Also: If you have any other income you must file a tax return.

22
Yes exactly, that is my confusion/frustration. I get exactly 120k which is not over so I have no idea why they moved me the bucket of people who has to fill the tax return form.

23
The application already applied some standard deductions:

- 3172 for costs of going to work

- 2000 for health insurance

I don't have any medical cost nor much any other bills for last year. I did all the treatments abroad paying from my pocket.

What amount do you think I can put for the lunch meals at work? I'm not sure but maybe they are already in the 3172 value.

Is it possible to claim return on professional books and online courses as expenses for professional education? Anyway I did not keep the bills.

I don't have any benefits at work, like canteen or whatsoever. I go for lunch to random places around.

24
There's also (at least in ZH, but probably similar elsewhere):

1) pauschal deduction for occupational expenses: 3% of salary, max 4000.

2) meals - 3200 Fr (or 1600 Fr if subsidized by employer). This can be usually claimed if it's not plausible for you to commute to home during lunch time to have a meal at home. Doesn't matter if you actually go home or not.

Can be claimed anyway, but only with receipts and if costs were high enough, I think there's a minimum threshold of 5% salary or so.

Yes, but usually only with receipts. There's 500 Fr pauschal that can be always claimed in ZH, not so sure about other cantons

Then you should be able to deduct 3200 Fr I think.

25
Two years ago my husband (we weren't married at the time) automatically switched from a B to a C permit. He gets way under 120K, so he was taxed at source, until he got a C.

Believe it or not, his taxes doubled between the at source and the standard one. And his isn't a unique case. In Vaud, at least, you pay a lot less if you're taxed at source.

26
This is easily explained by the fact that tax at source is applied at the cantonal average level. If you live in a (comparatively) high tax commune, you'll have to top up. Furthermore, the deductions applied when calculating tax at source are also fairly generous. Where people tend to get money back is on lump sum (think bonus) income which is annualized for source tax calculations and you thus tend to overpay a lot.

27
Is 120k before or after mandatory deductions. Or in other words is 120k the highest number on your wage statement?

Was it for 366 days, or only for part of the year?

Note: Tax at source is based on gross income. Regular tax is based on net income. You have to use the right number. If your employer subsidies lunch can be seen if the relevant box is ticked on top of the wage statement.

28
Yes I was there for the full year and I have earned 120k brut. For the tax form I have put the net which is 105'729 chf.

It must be something related other non obvious rules, like adding interest rate earnings etc. or it was just a mistake from the tax office. Bottom line, realistically, I will most likely not manage to get through with the question why is it so unless I hire some lawyer to shake the tax office.

Exactly like for me I googled for it at first before posting again in this thread. I have read such complaints and the explanation that for tax at source one pay as for the average expensive commune but now I would have to pay for the one live in which is the top expensive one. Still I was shocked that the difference is 2k

I have studied the tax instruction http://www.vd.ch/fileadmin/user_uplo...21001_2015.pdf

All in all, you were right, I can add much more deductions. Thank you very much for pointing me in the right direction

The 3172 is a lump sum deduction for expenses related to keep professional skills : books, computers etc. It's 3% of my net income.

Then there is also deduction for lunch expenses, lump sum 3200, and there is also deduction for every-day travel cost, also a table of lump sum depending on the distance.

All the above are in the instruction under codes 140, 150, 160.

Now my tax is just peanuts more than the tax at source

Furthermore, if I paid for retirement 3A and/or had some medical expenses the tax would be much lower. In the end I should be happy that they insist on filling the full tax form That's a happy end!

This is crazy. In the same instruction I have just found at the beginning:

They clearly state, that only people whose salary exceeds 120k are obliged to submit the full tax form and declare their income and fortune. Then I really doubt that the reason why they put me on the full tax was some few cents of interest rate on my account. Whatsoever...