Find out who is eligible for income tax exemption

Beneficiaries of the INSS (Instituto Nacional do Seguro Social) are among the taxpayers who are entitled to exemption from Income Tax if they comply with some rules provided by law. With this, they do not pay the tax to the Federal Revenue and, in some cases, they may be exempt from declaring the IR.

The exemption is valid for social security benefits, whether they are paid by the RGPS (General Social Security Regime or by the specific regimes of states, municipalities and the Federal District).

The following are entitled to the IR exemption:

1. Retired and pensioner with serious illness provided for by law
2. Who gets sick pay
3. Accident aid beneficiary
4. Retired and pensioner from the age of 65 (in this case, there is the right to an extra exemption per month from the birthday)

According to Daniel Nogueira, a specialist in Income Tax at Crowe Macro Auditores e Consultores, in the case of exemption for serious illness, the rule is valid for retirees or pensioners, but the benefit only applies to the income received from the INSS or from their own schemes. of pension.

“The other income that the taxpayer receives will not have the exemption”, says the expert. This means that salaries and rents received, for example, will be charged with IR if the amount exceeds R$ 1,903.98 per month.

According to the INSS, exemption from social security benefits is provided for in Law 9,250, of December 26, 1995, and includes income received as aid for temporary incapacity (formerly sickness aid), accident aid, retirement for permanent incapacity ( old retirement due to disability) resulting from an accident at work and benefits granted to people with occupational or serious illnesses.

The serious diseases that entitle the IR exemption are:

• active tuberculosis
• mental alienation
• Multiple sclerosis
• Cancer
• aids
• Blindness
• leprosy
• Irreversible and disabling paralysis
• severe heart disease
• Parkinson’s disease
• ankylosing spondyloarthrosis
• severe nephropathy
• Advanced stages of Paget’s disease (osteitis deformans)
• radiation contamination
• Cystic fibrosis (mucoviscidosis)
• severe liver disease
• Thalidomide Syndrome

The exemption from the IR on the benefit for those who are retired and have a serious illness occurs only after the insured person undergoes an INSS expertise. The expert examination can be scheduled on the Meu INSS application or website or by calling 135. In addition to the CPF number and other personal documents, the insured will have to present medical reports that prove the right.

Marcos Hangui, a specialist in Income Tax at King Accounting, and Renata Soares Leal Ferrarezi, a tax lawyer and business consultant in São Paulo, state that the IR exemption can also be requested by an old-age retiree who starts to have one of the diseases serious consequences provided for in the legislation.

Sickness and accident assistance

Sickness allowance is a benefit granted to a worker who is temporarily unable to work, whether due to illness or accident. The accident allowance, on the other hand, is a supplement to the monthly income of the INSS beneficiary, which starts from their work capacity. In both cases, there is no IR discount.

Beneficiaries of aid do not need to ask for a report or inform that they are exempt. The collection of IR is no longer done automatically when these benefits are granted.

Retired over 65 years old

In the case of retirees over 65 years of age, the exemption starts to count from the month of birth, but it is not total. In this case, the insured is entitled to an extra installment of exemption, of R$ 1,903.98 per month.

In the year, retirees aged 65 and over can deduct an extra R$ 24,751.74 from their income tax, which corresponds to 12 installments of R$ 1,903.98 plus the 13th salary. Anything that exceeds this total amount pays Income Tax.

How to declare the values ​​in the Income Tax?

If the INSS insured receives only exempt income, he will not need to declare the Income Tax. However, it is necessary to know if the taxpayer falls under any other rule of obligation to submit the declaration (see here which ones).

If you are obliged to report to the tax authorities, income received as retirement, pension, INSS aid or from your own schemes must be declared in the “Exempt and Non-Taxable Income” form. For retirees over 65 years of age, what exceeds the annual limit must be informed in the “Taxable Income Received from PJ” form.

The retiree who has another job must declare the salary as taxable income, also on the “Taxable Income Received from PJ” form. In the case of those who receive salary or rent from an individual, the income goes under “Taxable Income Received from Individuals/Exterior”.