Taxpayers can start filing their annual IRS return today

Taxpayers can begin filing returns for 2023 income this Monday, and that filing obligation can be met over the next three months, until June 30.

Income bills for 2023 will be based on income tax (for income subject to this tax advance), tax deductions submitted and changes determined by the State Budget Act 2023 (OE2023), namely the update of taxable income groups to 5.1 %. and reducing the rate applicable to the second category from 23% to 21%.

This annual settlement of accounts between individual taxpayers and tax authorities will show how the new withholding tax regime (on employee wages and pensions), which came into force in July 2023, has effectively brought the tax situation closer to each taxpayer, potentially resulting in a reduction reimbursement, that is, the return of funds that the taxpayer has transferred to the state, or tax due to be paid.

For several years now, refunds have been arriving in taxpayer accounts a few days after filing a return, and everything suggests that the process will continue in the same way this year. According to information provided by the Treasury Department at the end of last year’s IRS campaign, the average return period was then 19.5 days, compared with 16 days for the IRS automatic.

The faster rate at which refunds are paid out after delivery (unless there are discrepancies or other problems) has concentrated IRS delivery in the first few days of the due date, but tax experts advise that it doesn’t have to be that way.

In recent statements to Lusa, Order of Certified Public Accountants (OCC) President Paula Franco even warned to avoid the first and last days of the deadline, as a “peak” in Financial Portal access could hamper the process. .

The three months to file an IRS return applies to all income categories, i.e. dependent employment (Category A), independent employment (Category B), pensions (Category H), property or capital income.

IRS delivery must be done electronically but, as in previous years, there will be financial services, community spaces and parish councils that will provide support with completion and delivery.

This year, the number of taxpayers covered by the IRS automatic will be expanded to include those with pension certificates (known as public PPR) and those who use this automation, in addition to the benefits of a fully completed return (which each person must review and view). if you are sure before you accept and ship it), you can also know exactly the end result, i.e. whether tax will be paid or a refund will be received, and, if applicable, what the cost of combined or separate shipping will be.

For those who need to file an IRS return (Model 3), this year’s forms make several changes to accommodate changes in the law: This applies to landlords whose home rent was not updated last year or increased to 2% of income or even people who decide to remove houses from local housing and place them on the rental market.

All these situations will need to be reported in the declaration, as well as possible capital gains from the sale of real estate to the state and local authorities, so that they can benefit from the temporary exemption regime provided for in the Mais Habitação.

Anyone who qualifies for the IRS Jovem benefit will also have to expressly adhere to this treatment on the return, which means waiving the IRS automatic if provided.

On the other hand, non-residents who sell property in Portugal now have treatment similar to that of residents, meaning that these profits are taxed at 50% of their value, with inclusion being mandatory.