Income Tax 2024: see the limits for deductions

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Income Tax submission deadline for the year 2023 starts on March 15th and runs until May 31st. The Federal Revenue Secretariat released this Wednesday (6) the rules for Income Tax 2024, base year 2023 – and informed the limits for the deductions that can be made by taxpayers. The deadline for submitting declarations begins on March 15th and runs until May 31st. The expectation is that around 43 million taxpayers will submit their returns this year. The Tax Authorities reminds that taxpayers can choose two models when submitting the document: the simplified or the complete one. Simplified declaration The rule for making a simplified declaration remains the same. Those who opt for it will have a “standard” discount of 20% on their taxable income. This deduction replaces all legal deductions from the full declaration, including those for education and health expenses. In IR 2024, this 20% discount is limited to R$16,754.34 – the same amount as last year. Provisional measure exempts those earning up to 2 minimum wages from paying Income Tax Full declaration Those who had high expenses in 2023 on dependents and health, for example, can choose to make a full Income Tax declaration, as these expenses are deductible. See the limits: Dependents: the maximum amount is R$2,275.08 per dependent, the same as last year. Education: in education expenses (childhood, elementary, secondary, technical and higher education, which includes undergraduate and postgraduate education), the deduction limit remained at R$3,561.50 per dependent. Medical expenses: deductions remain without limit, that is, the taxpayer can declare the entire amount spent and deduct it from Income Tax. The list of medical expenses that can be deducted includes payments to: doctors, dentists, psychologists, physiotherapists, occupational therapists, speech therapists, hospitals, laboratory tests, radiological services, orthopedic devices and orthopedic and dental prosthetics.

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