The Income Tax Return Campaign for fiscal year 2023 It officially started on April 3, and the deadline to submit it is extended until next Monday, July 1. This is a crucial date, since forgetting to submit the Income Tax Return on time could result in fines, sanctions and surcharges from the Tax Agency.
How does the Income Tax return work?
He Personal Income Tax (IRPF) It is a progressive and direct tax. It is direct because it is applied directly to the economic capacity of people, that is, to the income they generate; and it is progressive because as the taxpayer obtains more income, he or she supports a higher tax burdenand you have to pay a larger amount.
During the year, workers and entrepreneurs usually do advance payments to the Tax Agency. Thus, when the time comes to file the annual income tax return, what we do is calculate the amount of taxes that correspond to us in concept of personal income tax, according to the income we have obtained throughout the year.
If with the advance personal income tax payments that we have been making throughout the year, we are not able to cover the total amount owedthen we must pay the missing amount and we say that “it pays us”. However, if the advance payments that we have made throughout the fiscal year are greater than the amount owed, then the Treasury must pay us the difference and we say that the declaration “He comes out to give us back.”
Why are you paying me?
Yeah the correct percentage has not been applied of Personal Income Tax in the Income Tax Return, the result will be positive. In other words, it will pay and we will have to pay the corresponding amount to the Public Administration. According to the specialized portal TaxDown, this can happen due to Various reasonsthe following being the main ones:
- Do not include the IMV or ERTE: This year it is mandatory to include the Minimum Living Income (IMV) that has been received in the Income Tax return. Also, if a person has been a beneficiary of the ERTE, the SEPE will act as the second payer. If this organization has delivered more than 1,500 euros and the income exceeds 15,000 euros gross per year, you will be required to submit the Income Tax return.
- Do not declare the benefit for cessation of activity for self-employed workers: If you are self-employed, you should not forget to add the amount of money received for the cessation of activity in your personal income tax return.
- Exclude the rescue of pension plans: A pension plan is a long-term savings product that is considered a deferred salary. This means that a portion of your current salary is being saved and cannot be touched until retirement, so it will be possible to subtract it from taxes. However, once this pension plan is rescued, it will be necessary to declare these incomes as if it were a salary and face a rate that will range from 19% to 47%.
- Do not apply deductions to which one is entitled: Another reason for the Income Tax return to be paid is that the taxpayer does not apply the state and regional deductions to which he is entitled. It is essential to be informed of these deductions to be able to apply all that apply in the personal income tax return.
When can I expect the return?
Once the campaign is over, the Tax Agency imposes a maximum period of six months to make the relevant returns. This means that, if, as we said before, the campaign ends on July 1, the Tax Agency has Until december 31 to make the corresponding payment.
However, it may happen that the Treasury is delayedin the return. The most common reason why the Treasury could be delaying is that it is still checking the data of your statement. These analyzes may include reviewing possible inconsistencies in the information provided on income and expenses, as well as verifying whether the declared expenses align with the taxpayer's professional activity.
The good news is that, in the event that the return has not been completed by that date, those affected will have the right to claim late payment interest. For which, those affected would only need to submit a written request for a self-assessment refund for the 2023-2024 fiscal year. As a result, Interest will be added to your return at a rate of 4.0625 percentwhich will be calculated from the date of the original income.