Categories
Tax optimization Taxes

Your marginal income tax rate

Introspective on your tax rates is an important element of financial literacy. How much taxes will you pay if you increase your income by X? In this entry, we’ll learn how to answer this question. To do that, we’ll see how to estimate your marginal income tax rate. Your marginal income tax rate What is…Continue readingYour marginal income tax rate

Categories
Investing Pillar 3a Tax optimization Taxes

How pillar 3a works

Pillar 3a is one of the most popular investments for Swiss residents. In fact, it’s somewhat unpopular not to contribute to pillar 3a. In this entry, we’ll discuss how pillar 3a works. We’ll also review the biggest pros and cons of pillar 3a investments, as well as some important investment considerations. About this entry There’s…Continue readingHow pillar 3a works

Categories
ETF investing Investing Tax optimization Taxes

Accumulating vs distributing ETFs

An efficient ETF portfolio will help you build net worth faster. There are many attributes to look at when choosing an ETF. Examples are tracking index, TER, fund size, bid-ask spread, domicile and legal aspects (e.g. UCITS). This entry focuses on yet another important consideration: the choice of accumulating vs distributing ETFs. Accumulating vs distributing…Continue readingAccumulating vs distributing ETFs

Categories
Tax filing Tax optimization Taxes

Common tax misconceptions

There’s a first time for everything. Also to learn about taxes. The world of taxes is big, and it’s normal to have knowledge gaps. Especially if you’re getting started. This entry demystifies common tax misconceptions. Tax misconceptions #1: The difference between average and marginal tax rate This is not necessarily a misconception, but rather a…Continue readingCommon tax misconceptions

Categories
Tax filing Taxes

Tax declaration guide (6/6): Abschluss

Almost there! This is the closing theme of the tax declaration guide (and of the tax filing process). It literally deals with ‘closing’ (Abschluss). Most likely you won’t have much to do here. Overseas taxesSteuerausscheidung Let’s first clarify the title of this form. Ausscheidung seems to be a technical term that describes the tax split…Continue readingTax declaration guide (6/6): Abschluss

Categories
Tax filing Taxes

Tax declaration guide (5/6): Vermögen

This entry of the tax declaration guide covers property and capital (Vermögen). This is the fifth theme of the tax filing process. I encourage you (again) to check this out if you want to know more about wealth taxes in Switzerland. Real estateLiegenschaften You must declare the value of all your properties, including those in…Continue readingTax declaration guide (5/6): Vermögen

Categories
Tax filing Taxes

Tax declaration guide (4/6): Wertschriften

The fourth theme in the tax filing process deals with securities (Wertschriften). Both securities and cash in bank accounts belong here. So pretty much everybody has something to declare in this theme. We’ll cover the different forms in detail as part of the tax declaration guide. Both income and wealth taxes derive from Wertschriften. I’d…Continue readingTax declaration guide (4/6): Wertschriften

Categories
Tax filing Taxes

Tax declaration guide (3/6): Abzüge [3/3]

This is the third and final entry of the tax declaration guide on tax deductions. We’ll cover all forms in ‘other deductions’ (Sonstige Abzüge). These are: Charitable donationsGemeinnützige Zuwendungen Illness and accident costsKrankheits- und Unfallkosten Disability related costsBehinderungsbedingte Kosten Additional deductionsWeitere Abzüge Charitable donationsGemeinnützige Zuwendungen You can deduct donations if they exceed CHF 100. My…Continue readingTax declaration guide (3/6): Abzüge [3/3]

Categories
Tax filing Taxes

Tax declaration guide (3/6): Abzüge [2/3]

This is the second out of three entries of the tax declaration guide on tax deductions. We’ll cover: Out-of-pocket expenses for part-time jobsNebenerwerbskosten Interests on debtSchuldzinsen Alimonies and pensions to othersUnterhalt und renten Pillar 3aSäule 3a Insurance premiumsVersicherungsprämien Work-oriented education/coursesBerufsorientierte Aus- und Weiterbildung Expenses for part-time jobsNebenerwerbskosten You can use this form to deduct out-of-pocket…Continue readingTax declaration guide (3/6): Abzüge [2/3]

Categories
Tax filing Taxes

Tax declaration guide (3/6): Abzüge [1/3]

The third theme in the tax declaration process gives you the option to list tax deductions. Tax deductions (Abzüge) bring down your taxable income, effectively helping you pay less taxes. If you’re not familiar with how tax deductions work, I encourage you to have a look at this post. This tax declaration guide will cover…Continue readingTax declaration guide (3/6): Abzüge [1/3]