Consultancy for your finances. See here the answers to your questions about IRS – IRS

I’m unemployed. Do I have to fill out the IRS declaration?

No. The IRS declaration is for income from work and investments. Unemployment benefit is a social benefit, so if you only received unemployment benefit throughout 2023, you will now not have to submit your IRS declaration.
If you worked part of the year, you are still exempt from submitting the IRS declaration if you had income of up to 8,500 euros in total, as long as it was not income not subject to withholding tax. If you had amounts lower than 8,500 euros, but made a withholding tax, you must submit the declaration.

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I have income in Portugal and abroad. What attachments should I fill out?

If you are an employee, you must fill out Annex A with the income earned in Portugal. If you are self-employed, you must fill out Annex B with the income earned in Portugal.
These are the annexes referring to work income. If you have another type of income, you will have to fill out other annexes, such as E (capital income), F (property income) or G (capital gains).
Income earned abroad, whatever the order, must be declared through Annex J. In this annex, you will be able to enter income earned from work or in other ways, such as investment.
It should also be noted that, if you are a non-habitual resident, you will have to complete Annex L of the IRS declaration.

I have income from different categories. Do I combine or opt for separate taxation?

There is no answer that covers all cases. It will essentially depend on the types of income you have. It is recommended that you simulate both situations to understand which is the most advantageous.
It should be noted that taxable income can be taxed at a rate between 14.5% and 48%. The rates to be applied to autonomous taxation income can vary between 11.2% (which includes some income from capitalization insurance) and 28% (amount that applies to investments in shares or Certificates, as well as leasing).
It should be noted that there is income that cannot be taxed independently, such as real estate capital gains. It is recommended that you simulate different situations and compare the results. Only then should you submit the IRS declaration.

As a landlord, what expenses can I deduct from the IRS for a rented property?

A landlord can deduct some expenses from the property income he receives throughout the year, thus reducing the amount subject to taxation.
The expenses that are deductible by the IRS are: the value of the Municipal Property Tax (IMI), investment in conservation and repair works on the property, condominium expenses and commissions paid to the real estate agency used to conclude the rental contract.
It is important to note that the expenses will not appear automatically in your IRS declaration, and you will have to complete Annex F with the charges incurred throughout 2023.

Is it possible to recover income losses from category F?

Yes, it is possible, and in this case, you will have a period of six years to recover, in accordance with subparagraph b) of paragraph 1 of article 55 of the IRS Code:
“b) The negative net result recorded in a given year in category F can only be reported to the six years following the one to which it relates; (…).»
It should be noted that the Tax Authority has understood that, in these situations, the inclusion option must be made so that the loss deduction mechanism can take effect.
Therefore, you must include category F income both in the year in which the loss was calculated and in the years in which you want to benefit from the respective carryover.

How long can you be considered a dependent on the IRS?

There are two issues to take into consideration: age and income. Therefore, young people up to 25 years of age can be considered dependents. Your income cannot exceed 14 minimum wages in a year. This means that, in 2023 (which is the declaration that will be submitted from April onwards), income cannot have exceeded 10,640 euros during the year.
In 2024, whose declaration will only be submitted in 2025, income cannot exceed 11,480 euros.

I did not validate invoices in efatura. And now?

You will still be able to see the expenses you incurred included. To do this, you just need to gather the information and fill in the data manually in table 6 of Annex H.
To gather the information, enter efatura as the purchaser. Information about 2024 will automatically appear, you will have to go back to 2023 on the arrow that appears at the foot of the year.
Then, a little further down, a “check invoices” button appears, press it and it will give a list of the 2023 invoices in which your tax number was associated.
The only thing you will have to change in the header is the start date and the end date, putting it from January to December 2023, so that you can see all the invoices for the last year.
After clicking on the “search” button, which appears next to the data to be filled in, all the data for 2023 appears and there is the option to “get data to excel” at the top of the table on the left. If you click on this option, an Excel will be exported with all invoices, identified by categories.
Then you just have to add up the values ​​in each category and enter this data in Annex H, table 6C, which is where general family expenses, health, education and professional training, real estate or homes are placed.
If you choose to enter expenses manually, you will have to select field 01 in table 6C1, in Annex H.

What is the impact of the new IRS Jovem rules on the IRS declaration?

The extension of the IRS Youth conditions implemented by the State Budget for 2024 will not be reflected in the IRS declaration that we will submit from April onwards. This is because the extension was determined for 2024 income and, at this time, we are submitting the 2023 income statement.
Thus, beneficiaries of the IRS Jovem (young people aged 18 to 26 – if they have a doctorate they can benefit for up to 30 years) will pay 50% less IRS in the first year, with a limit of 6,005 euros. Over the next four years, they continue to benefit from IRS Jovem, with the value of the discount progressively decreasing.
The rules that apply to income in 2024 determine that young people who benefit from this measure for the first time this year will have 100% exemption up to a limit of 40 IAS, which corresponds to 20,370.4 euros per year.

What pays more, filing the IRS statement together or separately?

It will depend on each situation. Generally speaking, if one member of the couple has a significantly higher income than the other, it is more worthwhile to pay together. However, what is advisable is to carry out all the simulations on the Finance Portal.
Before submitting your IRS declaration, simulate both scenarios. Compare the results of each simulation and choose the one that is most advantageous.

I work for someone else, I validated all the invoices in efatura, is it best to opt for Automatic IRS?

It is advisable to confirm all values ​​that are included in the automatic declaration. Always confirm the amounts of income and expenses. It is important to bear in mind that Automatic IRS may not be the best solution for all situations. Imagine that you have other income, this option does not include inclusion, which could penalize the taxpayer.
Whatever the situation, always confirm the values ​​assumed by the automatic declaration and assess whether anything is missing. If you identify something missing, choose to fill out the declaration manually.