Life insurances fiscal optimization in 2012

To know which insurance premiums paid in 2012 will be tax deductible in tax year 2013, it is important to know the indexed amounts for 2013. Note that when you make a deduction at once for income tax purposes, the consideration in return is often taxed as a whole. Therefore it might be better to enter into different insurances.

You can off course buy a separate life insurance as an investment without applying for tax deduction.
In the income tax return for 2013 certain amounts can be filled out in order to pay less taxes or to receive a tax credit for tax year 2013. But a taxable income should be declared in order to obtain tax reductions. This principle is simple. You can never receive more tax credit for a given tax year than what should be paid in case there were no tax deductions or tax reductions. Withholding taxes on professional income can be paid back up to certain thresholds which are mentioned in the income tax code 1992.

Please find hereafter the specific amounts relating to life insurances:

2.200 = maximum deductible amount per tax payer and per tax year for interest, repayment of capital and life insurance premiums in order to acquire or keep the only house;

730 = supplement during the first 10 years to the above mentioned amount;

70 = supplement to the above mentioned amount for three children at charge on 1 January of the following year of entering into the mortgage;

1.830 or 2.200 = calculation of the maximal amount of life insurance premiums and capital repayments;

73.190 = first part of the start amount for mortgages;

910 = limitation of 2012 payments for pension savings;

73.190 = applicable to the first part of the capital formed by personal contributions and paid at the soonest at pension age to the person who was active in Belgium until then;

for old loans and life insurances we refer to the Belgian Official Gazette of 18 January 2012 under point II.F.b.).