The delivery of the Income Tax declaration is approaching and there is one detail that can make a difference in the final result: having all the documents organized before accessing the Finance Portal. Many taxpayers reach the point of filling out their declaration without gathering essential documents, which can lead to errors, delays or even a smaller refund than would be possible to obtain.
According to the economics website Ekonomista, preparing tax documentation in advance is one of the simplest ways to ensure that all deductions are taken into account. Small errors, such as forgetting a health bill or not confirming expenses in the e-invoice system, can translate into tens or even hundreds of dollars lost.
As explained by the same source, the deadline for submitting the declaration is between April 1st and June 30th every year. Although it may seem like a long period, experience shows that many taxpayers leave the process until the last few days, when it is more difficult to gather missing documentation.
Confirming personal data is the first step
Before starting to fill out the declaration, it is important to check that the personal data registered with Finance are correct. Among the elements that must be confirmed are the Tax Identification Number, the associated IBAN for possible reimbursement and the data of the remaining members of the household.
According to Ekonomista, it is also advisable to check the CPFs of dependents, spouse or partner and, when applicable, dependent ascendants who live in common housing. Incorrect information can delay the processing of the declaration or make communication with the Federal Revenue Service difficult.
Income documents are essential
Another set of fundamental documents concerns the income obtained during the previous year. According to the publication, even though the Finance system already has a lot of pre-filled data, it is recommended that taxpayers keep proof of payment from paying entities.
In the case of employees, this includes the annual income tax declaration issued by the employer, as well as documents indicating withholding taxes made throughout the year. For self-employed workers, green receipts issued, proof of contributions to Social Security and documents relating to professional expenses must be collected.
Financial income and investments
Anyone who received income from capital or carried out financial transactions during the year must also gather the corresponding documentation.
According to the publication, this category includes bank statements with interest, proof of dividends and purchase and sale documents for financial assets, such as shares, funds or other investment instruments. Cryptoactive operations also now have a tax framework in Portugal. Anyone who carried out transactions with cryptocurrencies must gather records of the platforms used.
Expenses that can reduce tax
Another important step before filing with the IRS is to confirm all expenses that may give rise to tax deductions. As explained by the website specializing in personal finance, the main categories include expenses with health, education, housing, general family expenses and alimony.
Health expenses allow you to deduct 15 percent of the costs incurred, up to a limit of one thousand euros. This category includes medical consultations, medications, exams, glasses or specialized treatments. Education expenses allow you to deduct 30 percent of the costs, up to a limit of 800 euros, which can reach up to a thousand euros in certain situations. Rent for permanent housing and some charges related to mortgage loans can also give rise to deductions.
Confirm invoices using e-invoice
Most of these expenses are automatically recorded in the e-invoice system, but not all invoices are always classified correctly. According to the same source, taxpayers should consult the Finance Portal and confirm that all expenses are associated with the correct categories. If there is a pending or misclassified invoice, it is possible to correct the information directly in the system before sending the declaration.
Some situations require additional documents
There are also specific situations that may require additional documentation in the IRS declaration. Among the most common examples are the sale or purchase of real estate, which involves gathering the deed and evidence related to the transaction. Anyone with income obtained abroad or non-habitual resident status must also gather additional tax documentation.
According to the same source, independent workers may also need to present proof of professional expenses, such as equipment or renting work spaces.
Early organization can make a difference
Having all the documents gathered before starting to fill out the declaration makes the entire process easier. As explained by , when the information is organized, most taxpayers can send the declaration in a few minutes.
Furthermore, early checking reduces the risk of errors that could lead to later corrections or even possible fines.
Therefore, before opening the Finance Portal, the most advisable thing is to gather all proof of income and expenses, confirm household data and validate the invoices registered in the system.
Also read:
