Tax service warns for after-tax

The Tax service of Union FNV warns people they may be confronted with after-taxes, since the labor deduction was sobered down. The Union annually helps about 300,000 people fill out their tax returns. 'The labor deduction was sobered down, which means  that in contrast to previous years many people will have to pay after-taxes,' said a spokesperson for the Union.

'Incomes greater than 40,248 euro have a 4 percent deduction now, which is lower than before. For lower incomes it may actually mean a windfall,' said Tamara Tamis, coördinator with the tax service. The after-tax can add up to 1,173 euros, since the labor deduction is no longer automatically withheld by all employers, according to the spokesperson. People with a residual debt on their house also need to be alert. Starting January 1, 2013, the interest over the debt is deductible. 'People who acquired a residual debt after October 29, 2012 can deduct the interest from taxes over the next 10 years,' said Tamis.