On Tuesday next week, almost two million Finns will receive a total of about 900 million euros in tax refunds. Tax refunds will continue to be paid until December, but the majority of Finns will receive their refunds on 4 August.
If there are a lot of tax refunds coming in, many may have already thought in advance what to do with the money. However, there are a few things to make sure of before you lock in anything.
The amount of the refund may have changed after the tax decision. If this goes unnoticed, you may experience a nasty surprise on the payment date. For example, the money credited to the account is half the amount stated in the decision.
- The most common reason for this is that a person has sometimes failed to pay taxes in the past. The tax refund or part of the refund has then been used to pay the arrears, says Tarja Tapio, Senior Inspector of the Tax Administration.
In principle, the reduction in the tax refund should not come as a surprise to the person. According to Tapio, before the tax return date, the Tax Administration sends a letter informing the person that his or her refunds have been used to pay tax arrears.
- For example, if a person's taxation has ended in June, then on the date of the end of taxation, the Tax Administration uses the refund to pay taxes. At the end of June, a notification will then be sent to the person in question, Tapio explains.
The person may also be in the execution. Then the refund stated in the tax decision goes directly to the foreclosure.
- In a foreclosure, it does not even have to be a tax debt, but the refund can be used, for example, to pay maintenance payments or parking fines in the foreclosure, Tapio says.
Similarly, a person receives information about the foreclosure if his or her tax refund has been used for foreclosure fees.
The amount of the tax refund and the date of payment may change simply because the person has either corrected or supplemented the pre-filled tax return.
Changes can also occur if the spouse makes additions to his or her own tax return.
- Even if it were only the other party of a married couple and her tax, tax refund payment date will also change the other party's case, Tapio says.
- The reason for this is that the taxation of the spouses always ends at the same time.