The official start of filing the annual IRS return starts on April 1, but until then, taxpayers must observe a number of steps that are relevant when calculating the tax to be paid.
One of the first steps in preparing for the delivery of the IRS Return on Earned Income in 2022 has a deadline of February 15, the deadline for household updates.
This household update must be performed if the composition has changed during the year 2022, such as birth of dependents, marriage, divorce, change of parental contract, death or change of permanent residence.
The data to be filled in must take into account the situation of the household on December 31, 2022, and if this update is not made, the tax authorities will take into account the profile and composition of the household as it appears in the previous IRS declaration, therefore the existence of a new dependent and the deductions that this entails, for example, are not taken into account.
The Tax and Customs Administration (AT) warns that the household must be notified each year if there is a dependent with joint custody and with a Parental Responsibility Agreement that specifies the regime of alternate residence and the percentage of cost sharing for each of those responsible, if this is not the same.
“If this communication is not consistent with the communication of the other household, it is assumed that the dependent has no other residence and the percentage of sharing the costs of the parental guardians is divided equally,” says the AT in a 2022 IRS earnings prospectus, recently released.
February 15 is also the deadline for landlords to communicate the length of the lease to take advantage of the reduction in the IRS rate on rental income.
It should be remembered that the current regime allows landlords who do not opt for merging to pay an IRS rate of less than 28%, with this reduction being higher the longer the term of the contract is.
Rental costs of those who have moved their permanent residence to the interior must also be communicated by 15 February.
Ten days later, on February 25, the deadline expires for taxpayers to confirm the invoices with their NIF and prove the expenses incurred in the past year on the Finance Portal. In this process, taxpayers must validate invoices that are pending for one reason or another and record invoices that have not been communicated by the person who issued them.
This process is particularly relevant when calculating the tax payable, as the AT calculates through the invoices collection deductions (for health, education, rent or general family expenses) and VAT deductions due to billing requirements (obtained from expenditures on e.g. workshops, restaurants, passes or hairdressers).
The amount of the deductible costs can be consulted between March 16 and March 31, which is also the deadline for submitting a complaint about the lack of invoices or the calculations made by AT regarding general family costs or invoices with a right to deduct VAT.
March 31 is also the last day for taxpayers to indicate to the AT the entity to which they wish to transfer a portion of their IRS, and this indication can also be given when filing the annual tax return – for those doing so through normal channels and not through the automatic IRS.
The issuance of the IRS return or confirmation of the automatic return must be done between April 1 and June 30.
Source: DN
