Year-end tax checklist
Your earnings-related daily allowance counts as taxable income. We recommend that you check the percentage of tax that you will be charged before the end of the year to maximise what you have available to spend each month. It is always good to think ahead.
Check your tax situation before Christmas
Watch out for the income limit stated in your tax card as the end of the year draws near. If you go over the limit, you will be taxed at a higher rate for the excess at source and be left with less of your daily allowance to spend. This can be an unpleasant surprise just before Christmas.
We therefore recommend that you check the income limit in your tax card and how much you have been paid in daily allowances so far if you are thinking about claiming another allowance towards the end of the year. If the benefits due to you during the rest of the year will take you over your current limit, you can request a revised tax card from the Tax Administration.
In the OmaYTK, you can see your current income limit by clicking on the Tax Card button in the toolbar at the top. If the income limit is about to be exceeded, contact the Tax Administration to request a revised tax card for the benefit. The income limit for the new tax card should have a higher income limit to cover the benefits payable during the rest of the year.
- Check your income limit and the amount of benefits that you have been paid so far this year in OmaYTK.
- If you are about to go over your income limit, request a revised tax card from the Tax Administration.
Requesting a revised tax card via the Tax Administration’s website is easy. All you have to do is enter the amount of earnings-related daily allowances that you have been paid so far this year and your estimate of the amount that you will receive during the rest of the year. Ask the Tax Administration to send your revised tax card to us at General unemployment fund YTK. The Tax Administration will send your new tax card to us electronically, and in most cases we will have it the day after it was issued. There may be a slight delay if, for example, you submit your request just before a weekend. If you ask the Tax Administration to send your revised tax card directly to us, you will not need to send us a copy yourself.
If you want us to process your daily allowance application based on the information in your revised tax card, wait until you can see your updated tax information in OmaYTK before you submit your follow-up application. If you request a revised tax card and submit your application on the same day, we may need to use the information in your old tax card to process your application. Be patient!
By waiting until the changes have taken effect, you can save yourself from unpleasant surprises and ensure that we tax your payments for the rest of the year at the correct rate. If you have already done this, you have nothing to worry about.
Refunds and back taxes
Your earnings-related daily allowance payments are not affected by tax refunds or back taxes.
Taxes withheld at source in 2024
A new tax year is just around the corner. Your January allowance will still be based on the information in your 2023 tax card, but the accumulation of your annual earnings will reset at the start of the new year.
The Tax Administration will give us next year’s tax information automatically in January, but these tax cards are typically designed for income from employment. If you only have a tax card that is designed for income from employment, we will have to tax your benefits at a higher rate according to the Tax Administration’s instructions.
If you are claiming a daily allowance, we recommend that you request a revised tax card for benefits from the Tax Administration first thing in January. The Tax Administration will ask for an estimate of the amount of your next year’s earnings-related daily allowance. You can use our daily allowance calculator to estimate the amount that you will receive.
You can also calculate the amount yourself. The earnings-related daily allowance is paid for approximately 258 days each year. For an estimate of your full year’s earnings, you will therefore need to multiply your allowance by 258 days. Please remember to take into account how much of your maximum payment period is remaining. You can check the amount of your daily allowance and your remaining maximum payment period in OmaYTK.
Ask the Tax Administration to send your revised tax card directly to us at General unemployment fund YTK. The Tax Administration will send your new tax card to us electronically.
