See the expenses with education that give a discount on the Income Tax

Expenses with the education of the taxpayer and their dependents can generate a deduction of up to R$ 3,561.50 each in the 2022 Income Tax, which must be delivered by 11:59 pm on April 29.

The deduction is valid for official education courses at all levels, from kindergarten to graduate school. However, expenses with free and extracurricular courses cannot be deducted.

See the list:

Educational expenses that can be deducted

• Early childhood education, such as day care and preschools
• Elementary School
• High school
• Professional education such as technicians and technologists
• University education
• Postgraduate degrees, such as specializations, MBAs, masters and doctorates

Expenses that cannot be deducted from the IR

• language courses
• Swimming, music or dancing
• Transport, material and school uniform
• Private and tutoring classes
• Field or exchange trips and school trips
• gym
• Pre-university courses
• Preparatory courses for competitions
• Payment of entrance fees for entrance exams and Enem (National High School Exam)
• Extra expenses with remote teaching, such as the purchase of a notebook and internet plan

The limit of R$ 3,561.50 is individual and annual, explains Valdir Amorim, IOB’s legal and tax technical coordinator. That is, the educational expenses with each dependent and the declarant himself can generate, each one, a deduction of R$ 3,561.50. In a family where the mother pays her own postgraduate and the child’s school, for example, the total to be deducted will be up to R$ 7,123, double the individual value.

who can be included

The education expenses to be deducted must belong to the declarant and his dependents or food provided in the declaration. It will be necessary to clarify the link and provide the CPF (Individual Taxpayer Registration) of the dependents and those receiving food, in addition to detailing the income of each one.

To be included as a dependent on the declaration, the son or daughter must be up to 21 years of age or up to 24 years of age if still attending technical school or higher education.

In the case of separated parents, education expenses are tax deductible to be paid by the parent who includes the child as a dependent on his/her tax return. In order to deduct the expenses of the child with education, it is necessary to state in the separation process that this expense is paid by the declarant.

Expenses with instruction in official courses abroad can also be deductible from the IR, as long as they fall within the contemplated categories. The deduction limit is the same.

how to declare

The total amount of education expenses must be reported, even if it exceeds the deduction limit. Educational institutions send payment information to the IRS, which will compare it with the amount declared by the taxpayer. The amount paid can be checked on the receipt sent by the institution.

Here’s how to declare:

• In the “Payments Made” tab, select between the options “1 – Instruction in Brazil” or “2 – Instruction abroad”
• Click “New” and enter a form for each educational institution whose payment was made in 2021
• Inform if the payment was made for the education of the holder of the declaration, dependent or feeding
• Inform the name and CNPJ number of the receiving educational institution, in addition to the full amount paid

Payment can be evidenced by means of invoices, receipts and bank vouchers, which must be kept for up to five years after the declaration is sent. This is the period in which the Revenue can call the declarant to justify or give explanations about the declared value.

The taxpayer is obliged to declare in 2022 that:

• Received taxable income above BRL 28,559.70 in 2021

• Received exempt, non-taxable or taxed exclusively at source income above BRL 40,000

• Obtained a capital gain on the sale of assets or rights subject to tax

• Was exempt from capital gain tax on the sale of residential property, followed by the acquisition of another residential property within 180 days

• Performed operations on Stock, Commodity, Futures and Similar Exchanges

• Had, on December 31, 2021, possession or ownership of goods or rights, including bare land, above R$ 300 thousand

• Obtained gross revenue from rural activities in an amount greater than BRL 142,798.50

• Want to compensate, in 2021 or following years, for losses from rural activity from 2021 or previous years

• He became a resident of Brazil in any month and was in that condition on December 31

Deadline for sending the declaration: From 8:00 am on March 7th to 11:59 pm on April 29th. The declaration program can be installed on the Federal Revenue website and is also available on the Meu Imposto de Renda app, for tablet and cell phone.

Declaration pre-populated: Available from March 15th