When submitting Income Tax, anyone who lives in a rented house should look carefully at the values that appear in the declaration, because the Tax Authority (AT) allows you to check the elements used in calculating deductions and correct the information before submission.
In the current campaign, the deduction of permanent housing rent corresponds to 15% of the amount supported by the household, up to the general limit of 800 euros, according to the company itself.
Who can benefit
This deduction applies to rents paid by the tenant of an urban building, or part thereof, for permanent housing, in contracts falling within the legal regime of urban leasing, as well as in contracts relating to the real right to permanent housing. The rule is that these amounts are considered in the year in which they are taxable as the owner’s income.
In practice, this means that it is not enough to pay the rent every month. It is also important that the information communicated to the AT is correct, because the pre-filled declaration and the automatic IRS are based on data already existing in the system and must be verified before final confirmation.
What should be confirmed
Before accepting the declaration, it is worth confirming whether the costs for permanent housing are reflected in the values considered by the Federal Revenue Service and whether the amount corresponds to what was actually paid throughout the year. When necessary, the taxpayer can declare or change these charges in Annex H, as long as they have proof.
It is also advisable to analyze the simulation calmly. In automatic IR, the AT shows the elements that served as the basis for calculating tax deductions and reminds you that the provisional declaration must only be confirmed after this review.
Where many “lose” money
It is precisely at this stage that some taxpayers end up losing part of the deduction without realizing it. If rental values are incomplete or incorrect and the declaration is accepted without verification, tax may be calculated based on data that does not fully reflect the expense incurred.
The general deadline for submitting the declaration is from April 1st to June 30th, and the AT expressly recommends that income and deductions be reviewed before submission. This little care can make a difference in the refund or the amount to be paid.
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