Tax deductions are amounts or expenses that reduce your taxable income, which in turn can lower the tax you owe. They are not the same as tax credits (which reduce tax directly) or a tax-free allowance (which shields income up to a set limit).

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Common deductions\n

Depending on your country, deductions may include pension contributions, certain business expenses for self-employed filers, charitable donations where eligible, and work-related costs allowed by law. Payroll deductions on your payslip also include items taken before pay, such as income tax, PRSI, and USC in Ireland.

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Deductions on your tax return\n

When you file a Tax Return through Self Assessment or a national portal, you claim deductions you qualify for and attach evidence if required. Over-claiming can lead to audits and penalties, keep receipts and bank records.

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Staying organized\n

Use separate business accounts for freelance income and expenses. Label transfers in bunq so you can match them to categories at year end. bunq does not determine which deductions apply to you; confirm with your tax authority or advisor.