2024 Income Tax Return Deadline is May 31st

With the recent update of tax legislation, several changes have been implemented and it is essential that you understand them to ensure that your tax return complies with the new laws.

Changes in Exemption Limits

First of all, the main change in the income tax laws is the change in the exemption limits. The annual income limit for income tax exemption has increased.

In other words, this means that more people are now exempt from filing income tax returns.

It is therefore essential to check the official Receita Federal website to confirm whether you fall into this exemption group.

Changes to the Income Tax Table

Another significant change is the updating of the income tax table. This table determines the percentage of your income that will be taxed.

Consult this table to find out what percentage of tax will be applied to your income.

Capital Gains on the Sale of Real Estate

Currently, the new laws have also brought about changes with regard to the capital gain on the sale of real estate. Tax is now levied on a higher percentage of the profit made on the sale of the property.

Therefore, if you have recently sold a property, you need to understand these new rules in order to correctly calculate the tax due.

Private Pension

• For those who have private pension plans of the PGBL and VGBL type, the main change in legislation relates to the amount that can be deducted in the income tax return. You should be aware of this change so as not to pay more tax than necessary.

Therefore, knowing and understanding the new income tax laws is crucial to avoiding future problems with the IRS.

Finally, don't forget to always check the official Receita Federal website to keep up to date.

How to file your income tax return online

Above all, declaring your income tax online may seem like a challenging task, but we can assure you that it's simpler than it sounds.

Below is a detailed step-by-step guide to guide you through this complex process.

What you need

• Identification document: You will need your ID, CPF and your dependents, if any.
• Proof of Income: These include payslips, rental income documents, among others.
• Proof of expenses that can be deducted: This includes expenditure on education, health, private pensions, etc.

Step by step

The following steps detail the process of how to declare your income tax online:

1. Download the Receita Federal program: The first step is to download the Receita Federal program onto your computer. This software is available on the Receita Federal website.
2. Create a new declaration: Open the program and select the "New" option to start a new declaration.
3. Fill in your personal details: Enter all the information requested in the program.
4. Report your income: Here, you should add all the sources of income you have had over the past year.
5. Declare your expenses: At this stage, you must enter all the expenses that can be deducted from your income tax.
6. Review your statement: Check all the information, correct any errors and confirm everything before proceeding.
7. Send your declaration: Once you've made sure everything is correct, you can send your declaration.

Thus, declaring your income tax online is a simple and straightforward process.

With the Receita Federal program, you can do this from the comfort of your own home, without the stress of having to deal with paperwork and queues.

Tips for Avoiding Common Mistakes

Declaring Income Tax is a legal obligation that often causes confusion and making mistakes is quite common.

So there are a few tips that can help you avoid common mistakes and make this process easier.

Don't leave it to the last minute

Filing your income tax return at the last minute is one of the main causes of errors.

It's important start preparing your declaration well in advance to have enough time to collect all the necessary information and avoid rushing which can lead to mistakes.

Check your personal information

Errors in personal data are another common problem with income tax returns.

Make sure that all your personal information is correct and completeincluding date of birth, CPF and address.

Report all income

The IRS has access to all your income information.

It is therefore important that you report all your incomeThis includes salaries, self-employed income, pensions, share buy-backs and even informal income. Neglecting to do so can lead to fines.

• Keep your receipts: One of the most common mistakes is losing receipts. Keeping a file of these documents can save you a lot of trouble in the future.
• Annual adjustment: Make sure you adjust all your deductions, such as medical expenses and education.
• Avoid inconsistent information: Make sure that all the information in your statement is consistent, without contradictions that could raise red flags.

Pay attention to these tips and avoid common mistakes when filing your income tax return.

Also remember to use reliable and secure platforms to file your tax return, such as the official Receita Federal website.

Check out the links to the apps and websites mentioned in the content!

Receita Federal official website

• Internal Revenue Service

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