This year, there's a possibility that income tax refunds from the IRS could be reduced, and you might end up owing more due to alterations in Portugal's withholding tax tables.
DECO PROteste notes, "During the IRS declaration submission, refunds may decrease or there may be additional tax to pay." To augment refunds or diminish tax liabilities, the organization recommends deducting expenses accrued throughout 2023 by validating invoices issued during that period. This validation process can be completed on the e-Fatura portal until February 26th.
The organization suggests that by associating each expense with its respective sector, taxpayers can avail deductions in health, education, housing, and household expenses, along with general family expenditures. If any expenses are not listed in the e-Invoice by March 31st, taxpayers are advised to manually include them in the IRS declaration during the filing season, which extends from April to June.
DECO PROteste emphasizes that outstanding invoices remaining after February 26, 2024, do not initially qualify as deductions in the IRS. However, they highlight that expenses such as those related to health, education, homes, and real estate can still be manually entered in the IRS declaration.
Regarding the validation deadline, if it mirrors last year's scenario where many individuals either procrastinate or miss the deadline, there might still be opportunities to manually claim deductions. Notably, if invoices aren't validated within the specified timeframe, the Tax Authority won't automatically consider these expenses. Consequently, taxpayers must manually include these deductions in their IRS declaration.
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