Since 2017, Portuguese taxpayers can choose to file their income tax returns jointly or separately, whether for married couples or those in a stable union. This choice is made when submitting the declaration and can bring advantages, depending on each case. Therefore, it is always advisable to simulate the options before deciding.
The choice between filing jointly or separately depends on factors such as income, deductible expenses and applicable income tax rates. Declaring individually implies that each taxpayer is only responsible for their income and expenses. On the other hand, when opting for a joint declaration, the Tax Authorities consider the couple’s average income as the calculation basis.
Regarding tax deductions – expenses that allow you to deduct part of the tax – it is important to note that there are maximum limits. These caps do not increase on joint returns, which can hurt couples with many deductible expenses. In these cases, opting for separate declarations may be more advantageous, as each spouse can reach the limit individually, maximizing tax benefits.
According to , another aspect to be considered is the progressiveness of the IRPF. The higher the income, the higher the rate applied. Declaring separately treats each element as a separate entity, applying rates corresponding to your income. In the joint declaration, the couple’s income is added together, specific deductions are subtracted, and the result is divided by two. This average can lower the overall rate, especially if one of the spouses has very low or no income.
To decide, the ideal is to carry out simulations. The Finance Portal platform allows you to check how much each option will result in tax payable or receivable before submission. Finally, in the case of children, if they declare separately, the expenses can be distributed between the declarations, maximizing the benefits. When there is only one child, associating him with the highest income earner tends to be more advantageous.
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