This year, there is bad news for many taxpayers: the Income Tax refund could be smaller or even result in tax to be paid. The main reason is the drop in withholding tax rates. Still, there are always things you can do.
There are several ways to optimize the statement and increase reimbursement or at least reduce the impact. Check out 5 tips shared by Deco Proteste.
1. You can still enter expenses manually
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Not all expenses automatically appear in the IRS. If you have failed e-Invoice validations or have charges that do not arise (such as education abroad), you can add them manually in Appendix H. Please note: by doing this, you override the automatic values and must keep receipts for 4 years.
2. There is a new deduction for home services
Since 2025, you can deduct 5% of expenses for domestic services, up to a maximum of 200 euros. If these values do not appear automatically, they must also be entered manually into the declaration.
3. Including interest can pay off (but not always)
If you have interest on time deposits or savings certificates, you can opt for inclusion in the IRS. It pays off if you have an income of up to around R$22 thousand, but it doesn't pay off, as a general rule, for higher income. The ideal? Simulate before submitting.
4. Young people can “earn” years of IRS Young
Anyone with income of up to 8500 euros is exempt from paying IRS. In the case of young people, this can be advantageous as it avoids “spending” a year of the IRS Young benefit without taking advantage of it.
5. Automatic IRS is not always the best
Automatic IRS is convenient, but may not be the most advantageous. The recommendation is simple, you must simulate manual delivery before accepting. In some cases, it may be more worthwhile to deliver together rather than separately.
The IRS stands for Personal Income Tax. In practice, it is the tax that the State charges on the money that people earn throughout the year.
