See who can be dependent on the 2022 Income Tax

Taxpayers will be able to deduct up to BRL 2,275.08 per dependent from the 2022 Income Tax, which begins to be delivered on March 7. The new declaration program will also be released on the 7th, and not before the deadline. With stoppages and mobilizations of Revenue servants, the release of the program has been delayed and the deadline to send the declaration will be shorter this year.

Taxpayers can now separate essential documents to complete the return without errors, such as income statements and receipts for health and education expenses. It is also necessary to gather the income reports of all dependents that will be on the declaration, as well as receipts for expenses they had in 2021. It is mandatory to inform the CPF (Individual Taxpayer Registration) number of all dependents, even of children born in 2021. Registration for the CPF can be done through the Federal Revenue website.

See who can be declared as a dependent on Income Tax

• The spouse or partner with whom the taxpayer has a child or has lived for more than five years

• Child or stepchild, up to 21 years of age, or, at any age, when physically or mentally unable to work

• Child or stepchild, if still attending a higher education institution or high school technical school, up to 24 years of age;

• Sibling, grandchild or great-grandchild, without parental support, of whom the taxpayer has legal custody, up to 21 years of age, or at any age, when physically or mentally incapable of working;

• Sibling, grandchild or great-grandchild, without parental support, aged between 21 and 24 years old, if still attending a higher education institution or high school technical school, provided that the taxpayer has their judicial custody until the age of 21;

• Parents, grandparents and great-grandparents who, in 2021, received income, taxable or not, up to BRL 22,847.76 per year;

• In-laws, provided that the spouse or partner is included as a dependent of the declarant, and the in-laws have received income, taxable or not, of up to BRL 22,847.76 per year

• Poor minor up to 21 years of age that the taxpayer raises and educates and of whoever has judicial custody;

• Absolutely incapable person, of which the taxpayer is guardian or curator, such as minors and infirm

Declare all dependent income and earnings

When including a dependent who receives taxable income of any amount, such as wages, rents and pensions, the taxpayer must also declare these amounts. This can increase the amount of tax to be paid.

Expenses with health and education of the dependent may also be deducted from the final amount payable or increase the refund to be received. It is important to keep proof of these expenses, such as receipts and invoices.

When filling out the declaration, the program will show the difference in the tax to be paid or in the amount of the refund and if it is advantageous to declare the dependent, considering their earnings (if any) and the deductions allowed.

If a dependent turned 25 or 22 or died in any month of 2021, they can still enter as a dependent in the 2022 tax return. The deduction limit will be the same, explains Valdir Amorim, legal and tax technical coordinator at the IOB consultancy.

News in the 2022 income tax return

The Federal Revenue announced new fields that will ask for the address, telephone and email of dependents.

Taxpayers must specify whether or not they live with the dependent, and the address entered can be used to update this dependent’s CPF.

The dependents’ contact details, although optional, must be used by the IRS to locate and communicate with the author of the declaration if necessary, says Amorim. “It is important to understand that the dependent is also considered a declarant for the IRS, and the tax authorities seem to want to expand the possibilities of communication with him.”

separated parents

According to Felipe Coelho, senior tax manager at EY consultancy, a classic mistake in filling out the declaration occurs when parents declare both a son or daughter as a dependent. This can only be done when the couple submits the declaration together.

In the case of separate parents and different declarations, each child must appear in only one of them, even in the case of shared custody.

Each declarant can deduct the amounts of up to R$ 2,275.08 related to any of the common dependents, provided that none of them is also included in the declaration of the other declarant, according to the Internal Revenue Service.

In the case of non-shared custody, the child may appear as a dependent only of the taxpayer who has custody, according to a court decision or court-approved agreement.

If the child makes his own declaration, he cannot appear as a dependent in the declaration of the responsible person.

The parent who pays alimony to the child can include the child as alimony. Pension expenses are deductible from the payer’s income tax and must be declared. The person receiving the pension must declare it as taxable income.

same-sex couples

The taxpayer may include a partner of the same sex as a dependent and deduct the corresponding amount from the final tax to be paid, as long as the couple has lived together for more than five years or has children, even if they are together for a shorter time.

See the value of the IR deductions

• With dependents: BRL 2,275.08 per dependent

• With education: individual limit of up to BRL 3,561.50 in the year

• Simplified discount deduction limit: BRL 16,754.34

Income Tax refund payment schedule

• 1st batch: may 31st
• 2nd batch: June 30
• 3rd batch: July 29
• 4th batch: August, 31
• 5th batch: September 30th