Income Tax 2023: Who can be dependent? – 03/21/2023 – Market

Taxpayers with dependents can pay less tax or increase refunds when declaring them in the 2023 Income Tax.

According to the legislation, it is possible to report as dependents on the IR children and stepchildren up to 21 years old (or 24 years old if they are studying), in addition to parents, grandparents and great-grandparents, if they meet the legal norms. The deadline for declaring income tax ends on May 31.

How much is the deduction with dependents?

Those who have dependents and declare them have a limit for each one of them, in addition, they can deduct expenses with health and education, which, in this case, also have an annual limit. Only expenses with doctors and hospitals are not limited.

• For each dependent, the deduction limit is BRL 2,275.08 in the year; the monthly amount is BRL 189.59
• There is also the annual limit with education, which is BRL 3,561.50 per dependent
• To include father, mother, grandfather, grandmother, father-in-law or mother-in-law in the declaration, the income limit —taxable or not— is BRL 22,847.76 in the year

Understand how the rule works

The Revenue has a list of people who may be dependent on the IR. In all cases, it is only possible to appear as a dependent if the taxpayer is not obliged to declare. In addition, it is only possible to be included in a declaration.

This year, part of the rules of the Federal Revenue that define who can be dependent on the Income Tax changed after judgment of action in the STF (Federal Supreme Court).

According to Renato de Andrade Bento, a tax lawyer at Ronaldo Martins & Advogados, the decision expanded the rule that defines a dependent as someone who has a disability but works. The Supreme Court understood that, even if they have income, the disabled person can be dependent after 24 years, as long as their income does not exceed legal determinations.

The following may be dependents in the 2023 Income Tax declaration:

1. Partner with whom the taxpayer has a child or has lived for more than five years, or spouse
2. Child or stepchild up to 21 years old or up to 24 years old if studying
3. Child or stepchild with a disability, of any age, when the remuneration does not exceed the deduction limits allowed by law, according to the decision of the STF
4. Brother (ã), grandson (a) or great-grandson (a) up to 21 years of age or up to 24 years (if studying), provided that the taxpayer has custody, or at any age, when physically or mentally incapacitated for the work
5. Disabled brother, grandson or great-grandson of whom the taxpayer has custody, at any age, when the remuneration does not exceed the deduction limits allowed by law, according to the decision of the STF
6. Parents, grandparents and great-grandparents who, in 2022, received income, taxable or not, of up to BRL 22,847.76
7. Minor up to 21 years old that the taxpayer raises and educates and who has legal custody
8. Person deemed incapable of whom the taxpayer is guardian or trustee

What care?

Among the main precautions in the declaration are to understand if the dependent still meets the legal rules to be in the declaration. If he has income, it is necessary to know if he needs to declare it. There are also other rules that oblige to deliver the declaration separately.

Also, if the dependent has income, it must be declared, even if it is low. In this case, it may not be worth declaring the taxpayer as a dependent on the IR. The reason is that the income will be added to the others and may generate higher tax payable or reduce the refund.

Another situation to observe is if the child turns 25 in the calendar year. In this case, he can continue as a dependent on his father’s or mother’s IR, as long as he is not obliged to declare and continues studying.

To find out if it is advantageous to declare the dependent, the taxpayer can take the test by filling out the declaration program with or without the dependent to find out if the refund amount will be higher or lower or if the tax to be paid will be higher.

CPF is required

Since 2020, the Federal Revenue has required the taxpayer to inform the CPF of all dependents, of any age. For those who still do not have a CPF, it is necessary to request the document on the website of the Revenue and other federal agencies.

Where to declare?

• Dependents go on the Dependents tab
• Open a new tab in “New” and enter name and CPF, in addition to the dependent’s code
• If the dependent is a child, the code is 21
• If you are a father or mother, grandfather, grandmother, great-grandfather or great-grandmother, it is 31
• Partner or spouse goes in code 11
• There is a field to inform the dependent’s email and cell phone, if the taxpayer wants to
• In addition, it is necessary to say whether the dependent lives with the holder of the declaration

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WHO IS REQUIRED TO DECLARE?

Taxpayers 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 transactions on the Stock Exchange that, in total, exceed 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

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WHAT IS THE MINIMUM AMOUNT TO DECLARE INCOME TAX?

The minimum amount of taxable income in the year is R$ 28,559.70. This includes salary, retirement and other income. Exempt, non-taxable income or income taxed exclusively at source in excess of R$40,000 also require you to declare. Examples are FGTS, savings and alimony.

Those who have assets worth more than R$300,000, when adding all of them, also need to declare, as well as those who carried out operations on the Stock Exchange above R$40,000 or made a profit from the sale of shares, which are subject to the levy of the tax. .

ANNUAL INCOME TAX TABLE

Calculation basis (in BRL)	Rate (in %)	Installment to be deducted (in BRL)
Up to 22,847.76	–	–
From 22,847.77 to 33,919.80	7.5	1,713.58
From 33,919.81 to 45,012.6 0	15	4,257.57
From 45,012.61 to 55,976.16	22.5	7,633.51
Above 55,976.16	27.5	10,432.32

MONTHLY INCOME TAX TABLE

Calculation basis (in BRL)	Rate (in %)	Installment to be deducted (in BRL)
Up to 1,903.98	–	–
From 1,903.99 to 2,826.65	7.5	142.80
From 2,826.66 to 3,751.05	15	354.80
From 3,751.06 to 4,664.68	22.5	636.13
Above 4,664.68	27.5	869.36

WHAT DOCUMENTS ARE NEEDED TO DECLARE THE INCOME TAX?

The most important document is the income statement from paying sources, including the INSS retirement statement. Also have other documents in hand, such as medical receipts, proof of withdrawal from the FGTS (Senior Severance Indemnity Fund), if applicable, vehicle document, property documentation, rent receipts received, among others.