Submitting the IRS when you live in a stable union is more than an administrative formality. The way in which the declaration is presented, together or separately, can decisively influence the tax payable or the refund received, leaving many taxpayers faced with a choice that is not always obvious.
The period for submitting the Income Tax declaration occurs, as a rule, between April and the end of June. The Federal Revenue system automatically suggests individual taxation, but couples in a stable union can opt for joint filing, as long as this situation is recognized fiscally.
According to , a website specialized in economics and current affairs, which cites the Finance Portal, this possibility follows specific rules that are important to know to avoid errors and surprises in the final calculation.
Tax treatment equivalent to marriage
Although a stable union does not constitute a marital status, the Federal Revenue Code equates it to marriage for taxation purposes. In practice, this allows taxpayers in this situation to benefit from the same tax rules that apply to married couples, including deductions, dependent classification and taxation options.
The legal definition is in Law No. 7/2001, which considers a stable union to be the situation of two people who have lived in conditions similar to their spouses for more than two years, regardless of sex. In addition to the IRS, this framework extends to other areas, such as the protection of the family home and certain social and labor rights.
How to demonstrate a stable union with AT
The stable union is not subject to mandatory registration, but must be verifiable before the Federal Revenue Service. Among the most common means are the existence of children in common, rental contracts or invoices that demonstrate the sharing of housing, declarations from the parish council or testimonies.
When both members of the couple have the same tax residence for at least two years, the AT automatically presumes the existence of a stable union. In these cases, additional proof is usually not required, except in specific situations, such as when one of the elements resides abroad. Even so, after submitting the IRS together, supporting documentation may be requested.
Mandatory legal criteria
For the stable union to be recognized for tax purposes, both taxpayers must be of legal age, cannot be married to another person, except in cases of legal separation of people and assets, nor can there be direct family relationships.
The law also rules out situations of judicially declared mental incapacity or convictions for serious crimes committed between members of the couple.
IRS jointly or separately
As with married couples, partners can choose between joint or separate taxation. In separate taxation, each taxpayer submits their own return, including half of the dependents’ income. In the joint option, a single declaration is presented, with the global income divided by two using the family quotient.
This division can allow access to lower IRS brackets and reduce the tax payable. However, this solution is not always the most advantageous.
When it pays off for each option
As a general rule, joint taxation pays off when there is a large difference in income between the two couples or when one of them does not receive any income. Still, there are scenarios in which separate taxation results in a higher refund, therefore, preliminary simulation is essential before submitting the declaration.
The automatic IRS makes this choice easier when both taxpayers are covered, automatically presenting simulations for both modalities. If only one is included in the automatic IR, the option for joint taxation requires manual filling.
The relevant family situation is always that which exists on December 31st of the year to which the income refers. This implies that the stable union is, at that date, at least two years old.
The IRS Jovem regime can also be applied to taxpayers in a stable union, as long as one of the members meets the requirements, according to the same source, with the benefit remaining regardless of the age of the other member or the existence of dependents.
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