Income Tax 2023: Do I need to declare life insurance? – 05/16/2023 – Market

Taking out life, property or car insurance is a way to prevent yourself and have a financial transfer to help you face an unexpected loss or problems such as theft and possible damage to property.

Despite being an amount paid throughout the year, those who have insurance do not need to declare it in the 2023 Income Tax and, if they declare it, they cannot deduct what they paid. However, it is necessary to inform the Federal Revenue if any compensation has been received.

The insurance statement is not mandatory as it is considered a financial service. “You hire a service and someone will indemnify you if something happens. [recebida] needs to be declared, as it configures a financial transaction, and the Revenue needs to know”, explains tax lawyer Jonathas Lisse, from VRL Advogados.

In the case of receipt of money from the insurer, the taxpayer must declare it as tax-exempt income. “This value serves to indemnify a damage and is not characterized by the Revenue as an asset increase”, says Lisse.

See the step by step to declare insurance on the IR 2023:

• In “Declaration Sheets”, go to “Exempt and Non-Taxable Income” and choose “New”

• Select line 03 (Capital of insurance policies or annuity paid upon death of the insured, insurance premium refunded in any case and annuity received from private pension entities as a result of death or permanent disability)

• Fill in the amount received from the insurer

In the case of car and property insurance, accountant Adriana Ruiz Alcazar, partner at Seteco Consultoria Contábil, recommends that the insured also inform in “Assets and Rights”, in the file of the asset that motivated the indemnity, what caused the payment (theft , theft, damage or otherwise).

“Include in the Discrimination of Assets and Rights field that the insurance was triggered, that the amount X was paid and enter the date. If it was the case of a stolen or stolen car and without recovery, you need to inform that an incident report was made and leave the Situation on 12/31/2022 at zero, because you no longer have that good”, says Adriana.

If the amount passed on by the insurance was used in the purchase of another similar good, the taxpayer must inform in the field of Discrimination of Goods and Rights of this new good the amount paid and the insurer’s data. In addition, the old asset must be written off, leaving the Status field on 12/31/2022 at zero.

“Now if you crashed the car, activated the deductible and did not receive anything from the insurance, it is not necessary to declare”, explains Jonathas Lisse.

How to declare VGBL redemption on IR 2023

In cases of insurance that has payment of benefit due to the coverage clause for survival or rescue, it will be necessary to pay tax on it. The private pension plan VGBL (Life Generator of Free Benefits) is one example of such cases.

The declaration is made in “Income Subject to Exclusive/Definitive Taxation”, select income type 12 (Others) and inform the name and CNPJ of the insurer. In the description, explain that it was insurance compensation for survivorship or rescue coverage and state the amount paid.

“These data are usually sent by the insurer in the income report. If you haven’t received it, you have to request it”, says accountant Adriana Alcazar.

The deadline to send the statement ends on May 31, at 23:59. Those who are obligated and delay shipping pay a minimum fine of R$ 165.74, which can reach 20% of the tax due for the year.

WHO NEEDS TO DECLARE INCOME TAX IN 2023?

Taxpayers who received taxable income from BRL 28,559.70 in 2022 from salary, retirement, rent or self-employment must submit the 2023 Income Tax return.

However, having taxable income above the limit value is not the only rule. Check below what they are.

WHO IS OBLIGATED TO DECLARE THE IR IN 2023 WHO, IN 2022:

• Received taxable income above BRL 28,559.70, which includes salary, retirement and pension from the INSS or public bodies

• Received exempt income, non-taxable or taxed exclusively at source (such as savings income or FGTS) above BRL 40,000

• Had a capital gain (ie, profit) on the sale (transfer of ownership) of goods or rights subject to the levy of tax; this is the case, for example, of the sale of a car with a value greater than the amount paid for the purchase

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

• Carried out operations on the Stock Exchange that, in total, had values ​​above R$ 40,000, or obtained profit from the sale of shares, which are subject to the levy of tax

• Had, on December 31, possession or ownership of goods and rights, including bare land, in excess of R$ 300,000

• Obtained gross revenue in rural activity in an amount greater than R$ 142,798.50

• Do you want to offset losses from rural activity in 2022 or previous years

• He moved to Brazil in 2022 and was in that condition on December 31, 2022