In Portugal, state social support exists to respond to situations of economic or dependence vulnerability. The goal is to alleviate families’ burden and ensure a minimum protection network for those who, without these mechanisms, would have difficulty ensuring their well-being or that of people in charge. Among the various installments attributed by the state are supports intended for unemployed, low-income families, elderly or informal caregivers.
The informal caregiver support was created to ensure minimal conditions to those who devote substantial part of their time to care of family or close people in dependence.
However, recent social security and tax administration practices are raising doubts, as support has been accounted for as income, which may translate into the reduction of other social supports and the increase in tax burden.
A subsidy that should not count as income
According to Deco Proteste, the informal caregiver’s statute includes this non -contributory social benefit, paid monthly, to reinforce the protection of those who assume this role. The legal framework is clear: the subsidy should not be considered income for the purposes of calculating its own support and is excluded from taxation in IRS.
Nevertheless, according to the same association, the practice on the ground has been different. Some entities began to include the value in the calculation of the income from household aggregates, both for tax purposes and for the attribution of other supports.
Consequences in IRS and social support
In practice, this interpretation can raise the IRS level from informal caregivers and, as a result, reduce tax benefits. In addition, it may compromise the attribution of important social support, such as the informal caregiver support allowance or home support services.
The Consumer Protection Organization warns that most social support in Portugal depends on the calculation of the global aggregate performance. When these amounts are considered, even if improperly, many caregivers risk losing essential benefits or seeing them diminished.
“Caregivers should not be penalized”
Informal caregivers cannot be harmed by receiving a subsidy that has been attributed to them precisely to support them, underlines Deco Proteste. “Most of the supports depends on the total amount of income to assign benefits, but informal caregivers should not be penalized because they are entitled to subsidies,” argues the association.
In this sense, the recommendation is clear: according to the same source, “taxpayers must complain.” The taxpayers being affected must file a complaint with the Social Security and, if necessary, to appeal to the Tax Authority.
What to do before these situations
It advises that, whenever the informal career support is considered income for the purposes of IRS or access to social support, the beneficiaries do not accept this interpretation without contestation. It is essential to keep documentation, present proof of the legal framework and, lastly, request formal written clarifications to avoid unjustified cuts.
With the entry into force of the informal caregiver statute, the objective was to reinforce the protection of these families. However, divergent understanding by public entities may be creating additional obstacles, forcing citizens to resort to complaint mechanisms to ensure their rights.
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