How to declare your annual income
You can declare your annual income for the income check on a pre-completed tax return.
Please note that the income on a pre-completed tax return may be incomplete or incorrect, and that it may include deductions that are not recognised in the financial aid income check.
- Make sure that you provide an accurate estimate of your annual income and that it does not exceed your annual income limit (section 17 of the Act on Financial Aid).
- The income check is made on the basis of income for the most recent completed tax year.
Check the online customer service website to see what your annual income limit is (Opintotuki > Tukikuukaudet > Tulovalvonta). Use the calculator to find out whether you must return financial aid payments. You can also check the preliminary information on your annual income on the Kela's online customer service website. This service is available in April.
You must return financial aid payments for a given year by the end of April the following year.
If you have begun a course of study, graduated or used up your full financial aid eligibility in the current year see the income check instructions for new students and graduates.
Declaring annual income on a pre-completed tax return
Deduct from the euro amount shown under Ansiotulot yhteensä (Earnings in total) the study grant payments shown under Etuudet (Benefits) (see the picture). Deduct the study grants at their gross amount. The gross amount may be different from that deposited into your bank account. Find out the amounts of the study grants on the online customer service website at Opintotuki > Maksut.
However, please note the following:
- The euro amount shown under Etuudet (Benefits) may include other taxable benefits you have been paid, such as daily allowances, child care allowances or adult education allowances. Only deduct the study grant payments.
- Any study grants or other taxable benefits which you may have paid back voluntarily or which may have been collected from you after February (if you are self-employed, after December) do not show up on the pre-completed tax return. However, they too can be deducted from your total earnings.
The following types of income show up only partially or not at all on the pre-completed tax return, or their amount may change when taxes are finalised:
- income from self-employment
- rental income
- income from abroad
- earned and capital income that must be self-reported (such as income from providing private daycare services, freelance income, tips, certain capital gains)
- certain types of dividend income.
Update your annual income details with incomes not included on the pre-completed tax return as well as with any other income missing from it. You must also add information on any income from abroad.
Only some types of dividend income and the interest earned on the share capital of a cooperative are taxable and considered as income for purposes of the financial aid income check. Of the dividends paid by a publicly listed company, 85% is taxable income from capital and 15% tax-free. Of the interest earned on the share capital of a cooperative, 25% is taxable income from capital and 75% tax-free up to a per-year maximum of 5,000 euros.
If you have sold shares or other assets, your taxable capital gain is computed by deducting, from the sales price, the acquisition price and any costs you incurred in making the gain (for example trading expenses) or the presumed acquisition cost. Capital loss is not deducted. Please take into account that a small capital gain is tax free income.
Calculate the total income from capital recognised in the income check by using the information on the pre-completed tax return (see the picture). Add up the amounts of capital income shown. Capital losses, tax deductions or debts are not deducted from income during the financial aid income check.