The IRS delivery time is arriving, and between April 1 and June 30, Portuguese taxpayers have the opportunity to declare their income and, with some luck (and strategy), receive a reimbursement from IRS greater than expected. For many it is a puzzle, but with some simple tips, it can maximize the value that the state gives it back.
The truth is that many people end up ‘leaving money on the table’ out of ignorance or for relying too much on automatic IRS. This is where these suggestions come in that can make a significant difference in your wallet. From the care of completing the declaration to the inclusion of specific expenses, there are several ways to increase the value of your reimbursement.
Check the automatic IRS carefully
Automatic IRS is a tool that the state makes available to simplify the declaration process, but that does not mean that it is always correct. Many taxpayers accept automatic IRS without verifying if all deductions are being considered to which they are entitled.
If you have expenses with education, health, housing or even incomes that do not appear in automatic IRS, you may be losing hundreds of euros, as. It is essential to review each value and, if you find omissions, choose to fill the IRS manually and include the missing expenses in Annex H.
If you have a multipurpose certificate that attests to a 60%or greater disability, there are additional deductions to which you may be entitled. When filling in the IRS, it must declare the value of the disability and transfer the education and rehabilitation expenses to the specific field in Annex H (line 606).
In addition, it can deduce up to 25% of the amount of prizes paid in life insurance associated with housing credit. These values must be recorded in Annex H, in Table 6b, line 605. This simple adjustment can result in a savings of hundreds of euros – a detail that many are unaware of.
Avoid paying unnecessary value
If you sold a second housing house and used the amount to repay a housing credit (your, a child or a grandson), you can escape the payment of added value. For this, you have to declare the sale in Annex G, in Table 4, and then indicate the details of amortization in Table 19.
Many taxpayers assume that they will have to pay more value value, but if amortization was done within three months after sale, the amount is exempt. It is also possible to deduct expenses related to the purchase, sale and works of modernization in the last 12 years. This detail can save you thousands of euros.
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Benefit from less known deductions
If studies ended recently and started working, IRS Young can represent a large savings in the first five years of work. To benefit from this advantage, you must open Annex A and fill in Table 4A, Line 417 (if you have an employment contract). If you are an independent worker, you must open Annex B and fill in Table 3E. This measure allows you to benefit from a significant tax reduction, helping you to retain more yield in the early years of work.
If you bought and sold cryptocurrencies over a period of less than 365 days, you have to declare profit in Annex J, Table 9.4, and pay 28% of the added value. But if the cryptocurrencies were sold after a period exceeding 365 days, simply declare the transaction in Annex G1, Table 7, without paying tax on that amount. The most important thing is to know that it is only considered a sale when it converts the value of cryptocurrency to euros or other fiduciary currency. If you keep the cryptocurrencies without exchanging them for money, you don’t need to declare them.
If you have interest rates on time deposits, certificates, rents or food pensions, it is worth simulating the IRS with and without the encompassing. The encompassing allows us to add these income to work income, and in some cases it may result in greater refund.
Even if you have low yields or be exempt from declaring the IRS, this simulation can make a difference. If the encompassing results in less tax payable or a higher reimbursement, deliver the IRS with this option. Otherwise, ignore the annex and delivered without the encompassing.
Do not forget the consignment and correction of errors
Did you know that you can allocate 0.5% of your IRs to a social solidarity institution without it costing it a single cent? Just put a cross in the consignment option in IRS. But beware: if you also mark the option for VAT, the value of the refund, in the IRS, will be lower. Choose only the IRS option and will be helping without losing money.
Finance may request proof of the expenses declared up to four years after IRS delivery. Therefore, organize yourself and keep the original invoices kept safely during this period. This practice avoids complications in case of inspection.
Even after submitting the statement, it can correct it without penalty until the deadline. If you realize that you have forgotten any deduction, do not hesitate to replace the original statement. Following these tips, you can increase the value of your IRS reimbursement or at least pay less taxes.
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