90% of people must pay maximum income tax compared to their requirement. It would be best if you readied to submit your yearly tax, income, and personal income tax declaration. Make sure you will pay the overall tax that must exceed the requirement. You may find errors in most of the tax returns. Being a taxpayer, complete your income statement correctly.
Many taxpayers must make the declaration of the Income Tax of the Physical Persons every year. This tax is levied on the income obtained by individuals, both for wages and salaries, as well as income from movable capital (shares, investments) or real estate (rent for rental of properties) and the increases in equity obtained.
When is it obligatory to make the income tax declaration?
There is an obligation to declare this tax for people who have obtained in the previous year rents greater than $20,000 per year if they come from a single-payer, or $10,000 per year if they come from different payers (provided that the second and other payers add up, more than $1,200 per year, otherwise the $20,000 per year will continue to prevail).
There is also an obligation to declare whether the income returns and capital gains exceed $1.300 and real estate $,1000.
Reductions and deductions in the IRPF declaration
But there are a series of reductions and deductions that will decrease the amounts obtained when establishing the calculation base.
It is estimated that contributions to Social Security or mutual insurance companies, such as professional associations, are necessary to obtain the income, and therefore, are deducted from the tax base. Let us see several cases.
Contributions and contributions to pension plans: they reduce the base if they are attributed to the owner of the contributions (who makes the payments). This is the future holder of the perceptions. It means that each taxpayer deducts their payments. We cannot deduce, for example, the contributions of our wife—nor our contributions to plans whose beneficiary is the spouse.
Contributions and contributions to social security mutual funds: provided they have not already been deducted from the net income of economic activity. Its purpose is to cover possible contingencies: retirement, total disability, absolute or great disability, and death.
Premiums paid to insured pension plans: insurance contracts that cover retirement contingencies, total disability, absolute or large disability, and death, and where the policy expressly specifies that it is an “Insured Pension Plan.”
Contributions made by workers to social welfare plans: the policy must expressly state that it is an “insured plan of insurance,” and the main contingency covered must be retirement.
Satisfied premiums to private insurance: exclusively covering the risk of severe dependence or high dependence on family members up to a third-degree, spouses, or dependents, with a maximum limit of 30% of the sum of the income for the year (50% for over 50 years old) or $10,000, the lowest of these amounts.
Contributions made to pension systems favoring people with disabilities: (more than 65% physical or 33% psychic) or disability declared judicially.
Contributions for protecting the patrimony of the diminished people: in equal degree to point 6).
Contributions to Compensatory Pensions: favoring the spouse or alimony payments to the children, judicially ordered.
Minimum Personal and Family
Also, there is an adaptation of the base to the circumstances of each taxpayer, which is called ” personal and family minimum, “which is the part that is supposed to be essential to meet the basic needs of the taxpayer and his family. Generally, the taxpayer may reduce $5,000 from the base.
Typically, the statement for the personal income tax does not come under the obligation of some people as per their income. You must earn an identical personal income of less than $22,000 or $14,000 from an individual taxpayer. Invested income must be patrimonial, and profit must be around $1,600. According to property incomes, the treasury bill produces the tax acquisition of house council or cost taxed until $1,000. The patrimonial losses should not be more than $500.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.