Below are essential tax questions.
Who is required to declare?
If you are in at least one of the situations below, you are required to submit the declaration of IR 2020. Just fit in any of the situations, it need not be at all.
- He received more than R $ 28,559.70 of taxable income in the year (salary, retirement or rent, for example); or
- Earned more than R $ 40 thousand exempt, non-taxable or taxed at source in the year (such as labor compensation or savings income); or
- He gained from the sale of goods (house, for example); or
- Bought or sold shares on the stock exchange; or
- Has received more than R $ 142,798.50 in rural activity (agriculture, for example) or has a rural loss to be compensated in the calendar year 2019 or in the coming years; or
- He owned assets of more than R $ 300 thousand; or
- He moved to Brazil in any month of 2019 and stayed here until December 31; or
- He sold one property and bought another within 180 days, using the IR exemption at the time of sale.
Download the program
The first step is to install the IR 2020 declaration filing program on your computer. You can download the program here. Choose the version compatible with your machine’s operating system (Windows, Mac, Linux, etc.).
If you still installed the program used on your computer last year, to fill out the IR 2019 declaration, there is no point in trying to update it. It is necessary to install the new program, specific to IR 2020.
Recover last year’s statement
If you made a declaration last year, you should probably have a copy of the file saved on your computer or a printed version.
This file will speed up the completion of several fields of the declaration of IR 2020, especially the list of assets.
If you don’t remember where you saved the file or lost the claim, see here how to proceed to try to recover it or ask the IRS for a copy.
Once this file is found, open the IR 2020 program, click on “New” declaration, select the option “Start importing 2019 declaration” and indicate the folder on your computer where it is saved.
Will you declare for the first time?
If you are going to declare IR for the first time, you will need your CPF (Individual Taxpayer Registration Number) and voter registration numbers, in addition to your home and profession information. If the statement is made together with your spouse, the program will also ask for his or her CPF.
Get CPF from dependents
If you have dependent or feeding, you will need to inform the CPFs of all of them in the declaration, including the children. Babies born from the end of 2017 already have the CPF number informed on the Birth Certificate itself.
If any of your dependents do not yet have a CPF, you can request the document by email, free of charge, from the Revenue (see here how to order the CPF).
Ask for earnings report
At companies had until February 28 to deliver the earnings report 2019 to its employees. Consult your company’s HR.
In this document you will be informed how much you received in salary and how much you paid in Income tax source and INSS. The report may include other details, such as spending on health insurance or investments in the pension plan, when these benefits are offered by the company.
You will also need proof of income from your spouse and dependents if they work or receive a pension and make the statement together with you or are your dependents.
Was fired in 2019? Get report from the old company
If you were fired or changed jobs in 2019, look for the termination paperwork, proof of receipt of FGTS and unemployment insurance.
Ask the HR of the old company to send you proof of income for the period that you were still there.
Retired can download INSS report
If you receive retirement or pension from the INSS, be sure to get proof of income. The document is available on the Social Security website.
Bank must provide documents
All of your financial information, such as current account balance, savings and how much their investments paid off in 2019, they will be detailed in the income report provided by the bank. The document must be available on the internet or at your agency.
If you have an account or investments in more than one bank, you need to get reports from all institutions. This also applies to those who have investments in Treasury Direct or traded shares. Ask for the document at the bank or brokerage where you purchased the papers.
If you contribute to a private pension plan (PGBL / VGBL) or pension fund, or if you are already receiving benefits, the institution that administers the plan must also provide the receipt with the amounts paid or received in the past year.
Full or simplified model?
The taxpayer can choose between the complete or simplified model to complete your statement. In the simplified model, a standard discount of 20% is applied, up to the limit of R $ 16,754.34. The complete model allows legal deductions to be used to reduce the amount of tax payable or increase the refund.
When in doubt, fill in all fields of the declaration. In the end, the program will inform you of the most advantageous option – whether using the deductions you entered in full, or using the standard discount on the simplified model.
Get receipts from doctors and dentists
Expenses with doctors, dentists and other health professionals, exams, hospitalizations and health plans can be deducted from Income Tax, without limit on the amount.
However, not all health expenses are deductible. Expenses with medicines at the pharmacy, for example, are left out. See here what can and cannot be released in the declaration to deduct the tax.
Separate all receipts, invoices and bills of expenditure paid over the past year. You must keep the papers for at least five years, if the IRS decides to verify the veracity of the information.
Check if the papers disclose the name of the provider, address, service provided, value, CPF or CNPJ of who provided the service, in addition to their full name and CPF.
If the expense has been made by your dependent or feeding, his name and CPF must appear on the document.
Be aware of the reimbursement of consultations and exams made by the health plan. These amounts must be deducted from the medical expenses actually paid by you, and cannot be used to deduct income tax. Ask your plan operator for a detailed report.
Attention to education expenses
The topic is a recurring question of taxpayers. The Internal Revenue Service only accepts the deduction of expenses with elementary, high school, college, graduate or technical schools.
It is not worth launching expenses with extracurricular courses, such as English or ballet, or with preparatory courses for college. Expenses with the purchase of books, uniforms or any type of school supplies are also not accepted.
Collect payment slips or receipts, which must include the name of the school and the CNPJ, in addition to the student’s name. In addition to your own expenses with education, you can also reduce the expenses of dependents or those receiving food up to the limit of R $ 3,561.50 per person per year.
Domestic employee INSS can no longer be deducted
As of IR 2020, the IRS will no longer allow the taxpayer to use the domestic employee’s INSS expenses, the so-called employer contribution, to reduce the amount of income tax.
In IR 2019, those who had a formal contract at home could deduct up to R $ 1,200.32 from the social security contribution collected throughout the year.
Bought or sold property or car? See how to act
Did you buy or sold a car, motorcycle, house, apartment or any other good in the past year? Then, look for the contract, deed, invoice or receipt and write down the main information, such as name and CPF / CNPJ of who bought or sold, if the deal was paid in cash, in installments or financed.
In the case of financing, also note the bank name, contract number, the amount financed, the number and value of the installments, in addition to the entry fee. All of these details must be described in the asset declaration.
Did you profit from the sale of the good? Tax may be late
If there was a profit from the sale of the asset, you need to complete the Capital Gains program for 2019 (GCAP 2019), available at IRS website, and then transport the information to the IR 2020 program.
However, you may already be indebted to the IRS, because the capital gain tax must be collected in the month following the sale of the asset. If the sale took place in May 2019, for example, the tax should be paid by June.
But there are some exceptions, such as using all the money from the sale of one residential property to purchase another within six months. If your case does not fall under the exceptions and the GCAP program charged tax to be paid, settle the debt as soon as possible to avoid major fines, in addition to running the risk of having your statement retained in the fine mesh.
Did you receive rent? Must collect the dandelion
Self-employed workers and people who receive other sources of income, such as rent and alimony, with a value higher than R $ 1,903.98 per month, must collect Carnê-Leão, a kind of anticipation of the following year’s Income Tax.
If you received any of these sources of income over the past year, but did not pay Carnê-Leão 2019, download the specific program from the Recipe website and make late payments as soon as possible to avoid major fines and retention of your statement in the fine mesh.
The IR 2020 program allows importing the information released in the Carnê-Leão 2019 program, which speeds up the filling out of the declaration.
Property and vehicle details remain optional
In this year’s declaration, the taxpayer will not yet be required to include details about their properties and vehicles, such as the registration number in the property registry, the property’s IPTU number and the vehicle’s Renavam.
Since 2018, the declaration filling program has spaces for the taxpayer to fill in this data, but the information was not mandatory.
For those who have previously filled in the data, simply import the IR 2019 program and the information will be automatically transferred to the IR 2020 declaration fields.
Join consortium papers, loans, inheritances and pensions
If you did any of these operations last year, organize the documents to expedite the filing of the IR 2020 statement.
Informing the IR 2019 receipt number is no longer mandatory
Due to the pandemic of Coronavirus, the IRS has given up obliging those who had annual income from R $ 200 thousand to inform the number of the receipt of the IR 2019 in this year’s declaration. The requirement could cause queues at the revenue agencies, which have restricted service.
It is still mandatory to put the receipt number of the previous declaration only in case of rectification of the declaration.
Pre-filled declaration for those who have a digital certificate
The IRS maintained the option to use the pre-filled declaration. It is only available to Digital Certificate contributors, at virtual call center (e-CAC).
It is necessary that the taxpayer submitted a declaration in 2019 and that the paying sources have already sent the taxpayer information to the IRS.
Delivery time ends June 30
If you notice that a document is missing or you received a report with incorrect data, there is plenty of time to solve the problem.
The deadline for submitting the declaration is 23:59 on June 30, Brasília time. The IRS expects to receive 32 million declarations from IR 2020. In 2019, 30.677 million declarations were delivered.
Whoever delays delivery will have to pay 1% fine on tax due per month. The minimum amount is R $ 165.74 and the maximum is 20% of the tax due.
What you need to know about IR 2020