How is it taxed?
Basic unemployment money from kela its automatically taxed at a rate of 20%. What about the money from liitto? Is it also 20% or as a normal income so according to the amount?
earning based unemployment money from a liitto
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Re: earning based unemployment money from a liitto
You are confusing withholding and final taxation. Both earnings related unemployment support or Kela paid support are taxed progressively. You will not get all the same deductions so the rate will be higher than for salaries:Honest wrote:How is it taxed?
Basic unemployment money from kela its automatically taxed at a rate of 20%. What about the money from liitto? Is it also 20% or as a normal income so according to the amount?
https://www.vero.fi/en-US/Individuals/T ... its(40647)
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Re: earning based unemployment money from a liitto
As a union member, you'll not only be eligible to get earnings-based unemployment compensation, but also a lot of other benefits
Re: earning based unemployment money from a liitto
Ok. Thanks.
Looks like a person getting 1700 unemployment allowance will be paying around 30% tax.
A theoretical question
A person is unemployed and gets basic unemployment allowance from kela. He doesn't submit a tax card and kela deducts the standard 20% tax. After 10 months he needs to leave the country or let's say he does not get the allowance for some reason. So he doesn't have any other income the whole year. Now he for sure has paid more tax than needed. Because 20% should be enough if he gets the allowance for the whole year. Will he get back his overpaid tax in next year's tax returns?
Looks like a person getting 1700 unemployment allowance will be paying around 30% tax.
A theoretical question
A person is unemployed and gets basic unemployment allowance from kela. He doesn't submit a tax card and kela deducts the standard 20% tax. After 10 months he needs to leave the country or let's say he does not get the allowance for some reason. So he doesn't have any other income the whole year. Now he for sure has paid more tax than needed. Because 20% should be enough if he gets the allowance for the whole year. Will he get back his overpaid tax in next year's tax returns?