How to declare Income Tax? Everything you need to know!

Learn how to declare Income Tax in 2022!

Whenever a new year begins, a common question arises: how to declare Income Tax?

IR is a tax charged to Brazilians and must be declared annually.

In fact, if you know that you need to file a return, the ideal thing is to start preparing now.

And if you are one of those people who doesn't know how to declare Income Tax, don't worry!

In today’s article, we’ll show you step by step how to do it. Keep reading for more information.

Who must file an income tax return?

The government has not yet released the mandatory rules for declaring Income Tax in 2022.

See what the current IR declaration criteria are:

• Individuals resident in Brazil who had, last year, taxable income above R$28,559.70, such as salaries;

• People who received exempt, non-taxable or exclusively source-taxed income, the sum of which was greater than R$40,000.00, such as donations and inheritance;

• Anyone who had gross revenue exceeding R$142,798.50 from rural activities or has losses to be offset;

• Anyone who made a profit from the sale of assets, such as a property or vehicle;

• Anyone who used tax exemption on the sale of property to purchase another within 180 days;

• Anyone who carried out operations on the Stock Exchange, such as buying and selling shares;

• Anyone who lived abroad and moved to Brazil in any month of the past year;

Step by step guide to filing your income tax return

Filing your income tax return can be a lot of work. However, it is not as complex as people think.

However, of course, if you have difficulties or do not have the time to take care of everything yourself, you should count on the help of a good accountant.

In fact, if you feel insecure about filling out information, you have even more reason to hire the services of this professional.

However, knowing how to pay your own taxes is important. That's why we're going to show you step by step how to file your Income Tax return in 2022.

Check it out:

1. Separate all necessary documents

The first step is to get organized.

After all, if you separate all the documents before you even start filing your income tax return, it will be easier to fill in the information.

Furthermore, the chances of filling out some information incorrectly are considerably reduced if you have all the necessary documents.

Therefore, if you know that you will declare your income tax in 2022, start separating the documents as soon as possible.

It is important to remember that not all the documents we will mention here apply to your case.

In any case, see the list of what may be necessary for your IR:

• Name, CPF, date of birth and updated address;

• Copy of the latest income tax return (if you have already declared previously;

• Income statement (the company must provide);

• Updated bank account details;

• Personal documents of dependents (if applicable);

• Proof of medical and dental expenses;

• Proof of education expenses (if applicable);

• Proof and documents of assets, such as real estate and vehicles,

• Investment income report (document provided by stockbrokers);

• Private Pension Statement;

• Documents with information on loans and financing;

• Payment receipts or rent receipts;

• Donation receipts;

• INSS proof

• Pay slips, payment receipts and general invoices from the previous year

2. Download the IRS program to make the declaration

The declaration can be made either via computer or cell phone.

If you do it via computer, you just need to download the Income Tax Program.

If you do it via cell phone, download the “Meu Imposto de Renda” app.

It is important to mention that you can start the statement on one device and finish it on another.

Installation is extremely simple. Basically, you just need to follow the steps on the screen.

Click here to download the program to your computer or access the applications.

3. Start filling out your Income Tax return

If you have already separated all the necessary documents and downloaded the program, it is time to start the declaration.

Anyone filing an income tax return for the first time should click on “Create New Declaration”.

If you filed your return in previous years, go to “Import 2021 Return Data”.

Done! Now you can start.

It is important to mention that the most important part of the declaration is the financial fields. To avoid errors and problems later, pay close attention to each of the fields.

4. Choose between the full and simplified declaration

The simplified declaration is recommended for taxpayers who do not have many expenses to deduct.

The complete declaration is recommended for taxpayers who have many expenses to deduct.

The system itself presents both taxation options.

You should choose the full return if all deductions exceed 20% of your taxable income, as this way, the effort of filling out the entire return will be worth it.

5. Check all information before sending

It may seem obvious, but many people make mistakes here.

This is because in order to send it as quickly as possible, many people fail to check the information.

To avoid problems, check all the information filled in before submitting your income tax return.

If you have reviewed and seen that everything is correct, click on “Submit Declaration”.

Save your tax return receipt as you will need it next year.

Issue the DARF to proceed with the tax payment.

What happens to those who do not declare Income Tax?

For those who meet the mandatory criteria and still do not submit their IR, it may be necessary to pay a fine for late payment or even be prosecuted for tax evasion.

Until the issue is resolved, the citizen may be prevented from renewing their passport and taking out loans.

Conclusion

Now you know how to declare Income Tax in 2022.

To make it easier to fill in the information and avoid problems, start preparing (separating the documents) now!