The 2022 income tax declaration season is open and runs until April 29th. And one of the topics that generate more doubts is the deduction of IR expenses.
Deductions are the amounts you can deduct from your tax base, which is made up of taxable income. In practice, it is the expenses made throughout 2021 that, if declared, can reduce how much the taxpayer will pay in tax – or increase the refund.
Expenses related to health, education, private pension and dependents are part of the group of deductible expenses.
But before detailing what the possible expenses are, it is important to understand
Simplified discount or legal deductions?
The taxpayer can decide between two models of declaration: the complete one, in which he will use the expenses he had with health, education, social security, to reduce the calculation base; or the simplified one, in which you opt for a standard discount.
a) Simplified discount: the taxpayer has a standard discount of 20% on the calculation base – limited to R$ 16,754.34;
b) Legal deductions: the taxpayer reports all expenses he had with doctors, college or school for his children, alimony, etc. for these expenses to be deducted one by one from the tax calculation basis.
To decide which is the best option, it is recommended to fill in all deductible expenses, as if the taxpayer were to choose the complete statement. Then, just look at the “Tax option” box in the lower left corner of the program, which shows the tax payable or refunded for each model.
O InfoMoney consulted Valdir Amorim, editorial coordinator at IOB consultancy, and Edemir Marques de Oliveira, tax lawyer and partner at Marques de Oliveira, and Janine Goulart, tax partner at KPMG, compiled everything you need to know about the deductions allowed in 2022. Check out:
See below for the main deductible expenses. The expenses below can be deducted both for your own expenses and for dependents, as long as they are included in your statement as dependents (without entering another statement).
Deduction limit: there are no financial limits;
What can be deducted: expenses with private medical consultations, plastic surgeries, hospitals, dental treatments, physiotherapy, laboratory tests, radiological services, orthopedic devices, dental prostheses, expenses with medicines that are included in the bill paid at the hospital, among others. Medical expenses incurred abroad can also be deducted.
What can not: cosmetic surgery of any kind, tattoo removal without a doctor’s request, medical expenses covered by the insurance policy, medical expenses for companions, DNA tests, expenses with any type of drug purchased at pharmacies (even with a prescription), travel and accommodation expenses abroad on a trip for medical treatment.
Deduction limit: BRL 3,561.50 per year (valid for 2022);
What can be deducted: also known as “instruction expenses”, this includes expenses with: early childhood education (nursery and preschool); elementary and high school; higher education (undergraduate, graduate, master’s, doctoral and specialization); technical education; and specializations.
Regarding specializations, MBAs and technical courses that entitle you to college certificates, for example, can enter. Generally, these are specialization courses that last between one and two years.
What can not: spending on language courses (such as English, Spanish, etc.), gym, sports, dance or music classes, school supplies of any kind, transport to the school/educational institution, tablet and technology devices that are used at school , pre-university courses, school trips and exchange trips.
Expenses made with people who were not included as dependents in the declaration cannot be deducted either, for example: a taxpayer who pays for a nephew’s or grandchild’s school cannot deduct the monthly fee – unless he has judicial custody of the children and include them in your IR as dependents (see rules below).
Deduction limit: BRL 2,275.08 per dependent, per year;
Who can be dependent: children and stepchildren up to 21 years of age or, at any age, when physically or mentally incapacitated for work; children and stepchildren up to 24 years of age who are in higher education or technical school; sibling (s), grandchild (a), great-grandchild (a) as long as the taxpayer has judicial custody (up to 21 years old or up to 24 years old if he is studying higher education); mother, father, grandparents, provided that in 2021 they received income, taxable or not, of up to BRL 22,847.76 – if you exceed this amount, you cannot enter as a dependent.
Also, spouse or partner with whom the taxpayer has lived for more than five years are also allowed. Father-in-law and mother-in-law can be dependent only if the spouse is also dependent on the taxpayer.
It is mandatory to inform the dependent’s CPF. There is no limit to the number of dependents. Dependent income, if any, must be reported on the statement.
Also, dependents who live outside Brazil can also be included.
If the taxpayer’s child turns 25 in the middle of the year, it is allowed to include him in the following year’s declaration as a dependent. If a taxpayer’s dependent died during the base year (in this case, the year 2021), he can continue as a dependent in the following year’s declaration.
Fetuses that die soon after birth, the so-called stillbirths, can also be considered dependent because there is an obligation to register birth and death.
What can not: dependents cannot appear in more than one declaration. In the case of a couple in which both make their respective declarations, the children and stepchildren must be declared in only one of them. Anyone who does not meet the above criteria cannot be dependent.
Deduction limit: up to 12% of taxable income
What can be deducted: in this case, the taxpayer who has a private pension plan in the PGBL model (Plano Gerador de Benefício Livre) can deduct the amounts contributed to the plan of this type up to the limit of 12% of their taxable income. If the taxpayer has more than one pension plan, he must add the annual earnings when declaring them. When entering the data in the declaration (in the “payments made” form, code 36, 37 or 38), the program itself calculates the deductible amount in each case and informs the taxpayer.
What can not: the deduction does not apply to VGBL (Vida Gerador de Benefício Livre) plans, which, despite not allowing the annual deduction in the declaration, upon redemption only have income taxed. In the case of PGBL, although the deduction is allowed, upon redemption the taxation is levied on the entire amount: the principal applied and the income.
Deduction limit: up to 100% of the pension amount recorded in the contract;
What can be deducted: the taxpayer who pays the alimony can deduct the expense as long as the pension has been defined through a judicial decision or by public deed (extrajudicial). The taxpayer who pays the child support (child who receives the amount or ex-spouse, for example) can also deduct other expenses as long as they are defined in the court agreement. For example, a parent can deduct the medical or education expenses of the child, provided that, in the decision given by the judge, he is also responsible for bearing these costs – always following the limits of values and the criteria established in the education and health categories (cited above). ).
What can not: the contributor who pays the pension cannot also include the person being fed as a dependent. Personal agreements also cannot enter as a deduction. For example: the father pays child support following the court agreement, but decides on his own to pay an extra amount. This excess amount cannot be deducted because it is not part of the court decision, therefore, it is not recognized by the Tax Authorities. Also, the person who has custody of the child must declare the pension amount as taxable income received from an individual.
Expenses of self-employed professionals (cashbook)
Total deduction limit: 100% of what is considered an expense of the self-employed professional;
What can: expenses of self-employed professionals who are directly related to the work performed by them. That is, any expense that helps the professional to obtain his income can be worth it. For example, expenses with office rent, water, electricity, telephone, office supplies, and travel for professional purposes.
This type of deduction is only allowed to workers who do not have a formal contract and it is necessary for them to control these expenses in the cash book, which is the document where the professional will record all the income and expenses of their business. It is worth remembering that this type of professional is subject to payment of tax via carnê-leão (monthly tax collection) for income received from individuals throughout the year. Thus, every month you need to collect the tax through the carnê.
Deduction limit: Up to 3% per donation or up to 6% summing all donations (in this case on tax due);
What can be deducted: donations made: a) to funds controlled by municipal, state, district and national councils for the Rights of Children and Adolescents, in accordance with the Statute of Children and Adolescents (ECA); b) funds controlled by national, district, state or municipal councils for the Elderly; c) to the National Culture Fund (FNC), to audiovisual productions.
What can not: any other type of donation that is not destined to institutions duly registered in municipal, state or federal councils. For example, a donation to an orphanage that is not accredited by the city hall cannot be deducted. To find out if the institution is accredited or not, the taxpayer can ask the institution, search the institution’s website for the city hall or state logos, or even search for the city hall or state to confirm. In addition, this year the Federal Revenue no longer allows donations to Pronas (people with disabilities) and Pronon (cancer support).
Where to declare in the program
The Federal Revenue program is available for download on smartphones, tablets and computers.
The taxpayer who opts for the complete declaration will inform the deductions in specific fields of the declaration, depending on the category.
Expenses must be informed in the “Payments Made” form, which appears on the left side menu of the program. After opening the form, click on “new” and choose the code, as shown in the list below:
|education||Instruction in Brazil||1|
|Health||Speech therapist in Brazil||9|
|doctor in Brazil||10|
|dentist in Brazil||11|
|psychologist in Brazil||12|
|Physiotherapists in Brazil||13|
|Occupational therapists in Brazil||14|
|Occupational therapists abroad||19|
|Speech therapist abroad||20|
|Hospitals, clinics and laboratories in Brazil||21|
|Hospitals, clinics and laboratories abroad||22|
|Health plans in Brazil||26|
|Alimony||Judicial alimony paid to a resident in Brazil||30|
|Judicial alimony paid to a non-resident in Brazil||31|
|Alimony – separation/divorce by public deed paid to a resident in Brazil.||33|
|Alimony – separation/divorce by public deed paid to a non-resident in Brazil||34|
|pension||Complementary pension (including FAPI)||36|
|Contributions to closed private pension entities of a public nature||37|
|Rent||real estate rental||70|
In the case of donations, the taxpayer must open the “Donations Made” form also in the menu on the left of the program and select the code corresponding to the donation made. Donations made to the Child and Adolescent Statute, for example, are declared under code 40, while for cultural incentives the code is 41. Donations to the Elderly Council must be included in code 44.