For many taxpayers, IRS repayment may be this lower year. The change results from changes made in 2024 that adjusted monthly retention and now impact the returned value. Over the past year, workers and pensioners delivered to the state part of income through source retention.
How does IRS accounts work
With the delivery of the IRS declaration, the Tax Authority calculates if there was excess payment or insufficiency.
If you have discounted more than you should, the taxpayer receives a refund. If you discounted less, you will have to pay the difference.
Why is the correct value not always discounted
Source retention is made without knowing expenses, family changes or other income that influences the final tax.
Thus, the delivery of the IRS statement serves to correct this difference, resulting in a refund or an additional payment.
Changes in IRS rates in 2024
By 2024, the rates of the first six IRS levels descended, and the performance limits of each level were updated by 3%.
In addition, salaries up to 1,175 euros and pensions up to 1,202 euros were exempt from retention in September and October, Cofis’s website also explains.
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Impact of changes on reimbursements
Taxpayers have discounted less imposed throughout the year, which reduced the amount to be returned now.
For this reason, IRS reimbursement may be lower, or in some cases there may be a tax payment.
Practical examples of differences in reimbursements
A single worker with a salary of 1,000 euros gross, who in 2024 received about 440 euros, can now receive about 240 euros.
Already a pensioner with a renovation of 1,300 euros may exceed a reimbursement of 500 euros to have to pay 50 euros of tax.
Advice to maximize the refund
Simulating the delivery of IRS with joint or separate taxation allows you to choose the most favorable situation for refund.
Verifying deductible expenses and considering income encompassing can also improve the end result.
Although changes have immediate effect, tax planning remains a useful tool for the future.
IRS reimbursement is thus the reflection of an approximation between what was paid and what was actually due.
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