7 Essential Tax Deductions to Lower Your 2024 Income Tax Return
Income tax deductions allow taxpayers to reduce their taxable income and pay less in taxes. Here are the main deductions available for the 2024 tax year:
Mortgage on Primary Residence Homeowners can deduct mortgage interest payments and loan costs associated with their primary residence, subject to specific limits and conditions.
Pension Plans Contributions to pension plans are deductible up to the lower of:
- 30% of net income from work/economic activities
- Annual maximum limit established by law
Donations to Non-Profit Organizations
- Donations to qualified non-profit organizations are deductible
- Deduction percentages range from 20% to 35%
- Must keep donation receipts for documentation
Professional and Union Fees
- Professional associations: Up to €600 annually if membership is required for work
- Political party contributions: 20% deduction up to €600 annually
- Union fees: 20-35% deduction with no maximum limit
Energy Efficiency Improvements Deductions available for:
- Home insulation upgrades
- Renewable energy installations
- Energy-efficient heating systems
- Must meet technical requirements and obtain proper certification
Rental Housing Tenants may qualify for rental payment deductions, subject to:
- Income limitations
- Primary residence requirement
- Proper documentation of payments
Family-Related Deductions
- Maternity: Up to €1,200 annually for working mothers with children under 3
- Large families: €1,200-€2,400 depending on category
- Disability-related: Up to €1,200 for qualifying dependents
Self-Employed Expenses Eligible deductions include:
- Office supplies
- Professional equipment
- Utilities for business use
- Vehicle expenses (if business-related)
- Must maintain proper documentation and receipts
For all deductions, maintain proper documentation including:
- Invoices and receipts
- Contracts
- Proof of payment
- Certifications where required
Review current regulations and consult with a tax professional to ensure compliance and maximize available deductions.