The delivery of the Income Tax declaration continues in progress and, until June 30th, taxpayers can still make decisions that influence the final amount to be paid or received. Between choosing automatic or manual Income Tax, opting for income inclusion, including dependents or applying Youth Income Tax, there are several mechanisms that can change the result of the calculation. The central point is the preliminary simulation and analysis of the different options available before the final presentation of the declaration.
Automatic or manual IRS and simulation logic
According to , automatic income tax covers more and more taxpayers and allows the tax authorities to complete the declaration based on the data already available. Still, this option is not automatically the most advantageous in all cases.
The same source says that the comparison between automatic IRS and manual delivery must be done through prior simulation, as small differences in income or deductions can change the final tax.
According to the same source, the choice between joint or separate taxation must also be tested before submission, especially in married or stable families.
IRS Jovem and new application rules
The IRS Jovem regime was expanded and now covers young people up to 35 years of age, for a maximum period of 10 years of independent taxation. The benefit translates into a progressive reduction in the tax base, starting with a total exemption in the first year and decreasing in subsequent years.
The application of the regime requires an express option in the declaration, even when using automatic Income Tax, and it is necessary to ensure that the corresponding field is correctly marked.
Dependents, income and tax impact
Including children as dependents can, in certain cases, reduce the final tax due to the associated deductions.
However, it may also imply an increase in the household’s overall income, which changes the IRS bracket. The decision therefore requires careful simulation, as children can only be considered dependents up to the age of 25 and within certain income limits.
Income inclusion and impact on rates
Income inclusion continues to be one of the most relevant and, at the same time, least used decisions by taxpayers.
By choosing to include interest, dividends or income, the taxpayer can be taxed at a progressive rate, instead of the 28 percent tax rate. In some cases, especially when incomes are lower, this option may result in a lower final tax bill.
Income and collection deductions
In the case of property income, both owners and tenants can benefit from deductions associated with expenses such as maintenance, condominium fees or IMI.
These deductions must be correctly declared in Annex F or Annex H, depending on the situation. Tax deductions continue to be decisive in calculating taxes, covering areas such as health, education or housing.
Deadline and consequences of delivery
Compliance with the delivery deadline remains crucial to avoid fines and loss of municipal tax benefits associated with the IRS. Late delivery may also incur additional interest and fines, especially for taxpayers without access to automatic Income Tax.
Pre-checking all data before submission remains the most decisive element in optimizing the final result of the settlement.
According to the same source, the combination of simulation, choice of regime and validation of deductions can make a significant difference in the tax payable or received.
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