IRS withholding relief can be paid after filing your return. Taxpayers “should report” deductions when filing their IRS returns “to minimize the impact of changes in withholding tables.”

The IRS withholding tax change since July may now result in a smaller refund or tax payment, stresses Decaux, who advises taxpayers to carefully review their accounts to minimize this effect.

Speaking with Lusa as the countdown begins to file the annual IRS return, Soraya Leite, a spokesperson for Deco Proteste, warns that the fact that income tax tables have changed in July 2023, “providing immediate relief to the wallets of taxpayers who are paying now may be made after filing your IRS return.”

That context, he said, means the process of reviewing and confirming deductible expense accounts with the IRS has taken on even more urgency this year, as the head of the consumer protection association advises taxpayers to check whether the value of deductions is calculated by the Internal Revenue Service. The Authority (AT), which became available on the financial portal in the middle of this month, includes all invoices issued by NIF and can reject them or file a complaint if it finds that invoices are missing.

A taxpayer “should record” the deductions when filing an IRS return “to minimize the impact of changes in withholding tables.”

If there are errors in expenses related to housing, education, health care or home “when a taxpayer fills out the IRS,” as of April 1, “they must remove the pre-populated value and replace it with the correct value,” it says. Soraya Leite, noting that everything helps to minimize the amount of tax paid.

No invoices for general household expenses or those that allow the IRS to deduct part of the VAT paid in sectors such as restaurants, gyms, workshops and hairdressers must be submitted to AT by the end of this month.

“All deductions have actually been made […]you have to submit them on the IRS return so that they actually minimize the impact of a change in the income tax tables, which naturally caused the taxpayer to hand over less money to the government and therefore may now have an impact on the amount payable from the IRS’s perspective, or even on the amount of compensation,” he explained.

The IRS automatic will be extended to more taxpayers this year, now covering those with investments in retirement certificates, a change that makes this automation “more comprehensive” and adds government capitalization treatment to the list of tax breaks already available. covered, namely donations and PPR.

Conversely, taxpayers wishing to take advantage of the youth-friendly tax treatment must bypass the IRS’s automatic return and file a “manual” return.

This is because, Soraya Leite notes, young people wishing to take advantage of this tax benefit “will not be able to ‘automatically file a tax return'” and ignorance of this fact, he admits, could mean that in previous years some eligible young people were excluded from the regime.

According to IRS Jovem, IES is exempt from all income up to a maximum of 40 times the Index of Social Security (IAS). In the second year the exemption covers 75% of income (categories A and B), and in the next two years the exemption is 50% and 25% in the fifth year.

The IRS return is filed between April 1 and June 30, during which time it can be corrected and replaced free of charge.

Replacing within 30 days of the due date may result in a penalty depending on whether the mistake made is detrimental to the tax administration, as Deko points out, or not.

Over the past few years, refunds have arrived more quickly to taxpayers covered by the IRS automatic, and that is expected to continue into this year’s campaign.