Income Tax 2023: how to declare FGTS withdrawal – 04/04/2023 – Market

Taxpayers who carried out the extraordinary FGTS (Service Time Guarantee Fund) withdrawal in 2022 and are obliged to declare the 2023 Income Tax must report the amounts to the Federal Revenue Service.

The FGTS is an exempt amount, that is, it does not charge income tax, and must be declared in the file of the same name. Failing to inform the values ​​can lead the taxpayer to fine mesh.

“All income received in 2022 must be presented in the IRPF 2023 declaration. By not presenting complete information, the taxpayer assumes the risk of being levied or selected for inspection”, says the Revenue.

The extraordinary withdrawal from the Fundo de Garantia was part of the Bolsonaro government’s package of economic measures in pursuit of re-election. By rule, workers with money in the FGTS could withdraw up to R$ 1,000.

The measure benefited 45.9 million professionals, with a total of R$ 31.7 billion released. Of those who were entitled, about 12 million failed to withdraw R$ 8 billion.

Accountant Mauricio Tadeu de Luca Gonçalves, from the company Partwork and director of Fecontesp (Federação Contabilistas Estado São Paulo), says that if the taxpayer received only R$ 1,000 in 2022, he does not enter the rules that oblige to deliver the declaration. But, if he has to declare, he cannot forget to inform the values.

Edilson Ferreira Junior, partner at CF Contabilidade and vice president of Interior at CRC-RJ (Regional Accounting Council of Rio de Janeiro) explains that all FGTS withdrawals, even those made on an emergency basis, are exempt from income tax and they go on the same form as the declaration, which is the Exempt and Non-Taxable Income.

The delivery of the Income Tax declaration began on March 15th and will run until May 31st. Taxpayers obliged to render accounts cannot delay sending the declaration, otherwise they will pay a fine. The minimum amount is R$ 165.74, but it can reach 20% of the tax due in the year.

According to the Federal Revenue Service, the extraordinary withdrawal of the FGTS must be entered in the Exempt and Non-Taxable Income form, under code 04 – Indemnities for termination of employment, including as a PDV, and for accidents at work; and FGTS.

How to inform the values ​​to the IRS?

• Open the Exempt and Non-Taxable Income tab
• Click on “New” and, on the next page, choose the code “04 – Indemnities for termination of employment, including as a PDV, and for accidents at work; and FGTS”
• In “Type of beneficiary”, inform if the amount belongs to the holder of the declaration or one of his dependents; also provide the name of the beneficiary
• It is also necessary to declare the name and CNPJ of the paying source, which in this case is Caixa Econômica Federal. Caixa’s CNPJ is 00.360.305/0001-04
• In “Amount”, enter the amount withdrawn in 2022

There is no bank earnings report that brings information about the FGTS extraordinary withdrawal. To find out the amount to which he was entitled, the worker needs to access the FGTS application to check the values ​​​​on the statement.

What to do:

• Download or open the FGTS application
• In the app, click “Login”
• Choose “Continue” right after the following information: “FGTS wants to use Caixa.gov.br to start the session”
• Enter CPF and password and click “Login”
• On the page, go to the “Extraordinary Withdrawal” icon
• On the next page, you will be informed of the amount deposited in your FGTS account

The worker can also get the FGTS statement for 2022 at ATMs and at Caixa Econômica Federal branches.

I will make the pre-filled IR statement. Will these values ​​be reported?

According to the Revenue, this income is not recovered by the pre-filled declaration of the 2023 Income Tax and, therefore, the taxpayer will have to enter this data manually.

Yes, according to the IRS. All funds received by the taxpayer in 2022 must be included in the Income Tax declaration, if the taxpayer is required to declare.

I withdrew other amounts from FGTS during the year. Do I need to declare each of them separately?

According to consultants, it is not necessary. The worker must add up the amounts withdrawn from FGTS in the year 2022 and inform them on the same form, on line 4, under the CNPJ of Caixa, which is the paying source. The exact value of the FGTS withdrawal is in the Guarantee Fund statement, which can be accessed through the FGTS application.

I used the FGTS to buy a property. How do I declare?

If you used the FGTS money to make a down payment on the property, the amount must be declared on the Exempt and Non-Taxable Income form, on line 4, together with the values ​​of the extraordinary FGTS. Add up everything you took from the Guarantee Fund and report it on the form.

However, in this case, the worker must also inform the use of the FGTS money, detailing the amount, in the “Discrimination” field of the “Assets and Rights” form, where he will declare the purchase of the property, either in cash or through real estate financing.

I withdrew the FGTS after being fired. How should I declare?

All FGTS withdrawals are exempt and go on the same Income Tax form, which is Exempt and Non-Taxable Income. The worker must add these amounts and declare them on line 4. However, it is possible to know the exact total by consulting the FGTS statement, in the benefit application, at ATMs or at Caixa Econômica Federal branches.