Irpef 2023: these errors are the most common ones that lead to fine meshes

The Federal Revenue has listed some tips to keep your 2023 income tax returns from falling into the “fine mesh.”

This Wednesday (15th) the period for submitting the 2023 tax return begins. Taxpayers have until May 31st to submit the correctly completed documents. To avoid fine meshes, the IRS has listed some of the most common mistakes in filing taxes.

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The Tax Jersey, better known as the fine mesh, is the process of reviewing and checking the returns submitted by taxpayers. When incorrect, inconsistent or missing information is identified, the declarations “fall into tight circles” generating a series of inconveniences for the taxpayer.

Check out the top most common mistakes in declaration and avoid the fine mesh, below;

The 8 most common mistakes in the tax return

1. Omission of income and assets

Considered the most frequent mistake by the Federal Revenue Service, the withholding of income or assets can be considered an attempt at tax evasion – which can lead to a fine of up to 75% of the withheld amount.

Therefore, it is essential to include all income recorded in the base year of the return, including amounts received for temporary agency work and the income of one’s dependents, such as a scholarship or paid internship.

2. Rent receipt

The amount received from renting a property is considered taxable income and its inclusion in the tax return is mandatory. For taxpayers whose tenant is a company, the amount received during the year must be entered in the “Taxable income received by legal entity” tab.

If the landlord is a natural person, the amount must be declared in the section “Income received from natural persons or abroad”. In the case of installments exceeding R$ 1,903.28 per month, the owner must pay the tax through the Leão booklet, monthly.

3. Inclusion of dependents

Some taxpayers may make mistakes when including dependents. In the case of the taxpayer’s parents, they can only be considered dependents if they receive up to R$ 22,847.76 per year — income which must be indicated in the return. In the case of minors, they can only be present in the declaration of one of the guardians. All expenses with that child’s education and health must be disclosed, in addition to their income.

4. Unconfirmed or non-deductible medical expenses

Medical expenses must be correctly declared with the information available on the invoice and other receipts. These documents must be kept for up to five years, in case of inconsistency between the clinic or hospital reports and the taxpayer’s declaration.

Also, some expenses are not considered in the reimbursement, such as: expenses with masseuse, nutritionist, nursing, purchase of glasses, wheelchair, medications, vaccines and tests in the pharmacy, etc.

5. Education expenses

Education expenses have an upper limit to receive reimbursement of R $ 3,561.50. However, you must include all expenses on your return, and the income tax program itself will limit your deduction to the set limit.

Expenses that do not fall into this category include: language courses, art, dance and sporting and cultural activities, expenses for uniforms, transport and school and teaching materials.

6. Private pension

The deduction is limited to 12% of taxable income on sums invested in private or supplementary pension funds. However, it is worth mentioning that there is a difference between the Free Benefit Generating Plan (PGBL) and Free Benefit Generating Life (VGBL) models, where only the former is deducted.

In this way, the taxpayer must pay attention to the following details in order not to make mistakes and fall into tight links:

• VGBL: does not allow deduction and must be declared as a financial application in the form “Properties and rights”, in the group “99 – Other assets and rights”, in the code “06 – VGBL”;
• PGBL: has contributions deducted up to 12% of income and must be communicated in “Payments made” in “Code 36”.

7. Change of capital

In addition to income, it’s important for taxpayers to declare all of their assets, such as cars and real estate, as well as anything acquired during the year. It is essential that taxpayers account for variations in equity or the possibility of falling into the thin web grows exponentially. Capital gains from inheritance, land, sales, etc. must be declared and must match the history of previous years.

8. Typos or use of the wrong form

Last but not least, typos, choice of form template, or missing data are big villains when submitting your statement. A field left empty or an approximate value are details that can lead you to the fine mesh. Therefore, it is essential that you pay attention to all information entered and review it several times.

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Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.