Income Tax: can a mother be a dependent on the declaration? – 05/18/2023 – Market

The inclusion of a mother as a dependent in the 2023 Income Tax helps to reduce the tax that will need to be paid or increases the amount of the Federal Revenue refund. However, it is necessary to comply with some rules that determine who can be declared by the taxpayer.

The dependent is the person who is financially dependent on a person, in this case the holder of the declaration. He cannot meet any of the mandatory conditions for the IR declaration (click here to find out what they are) and can be reported as such only by a taxpayer. Therefore, the mother must be declared dependent by only one of the children.

In addition, the mother’s total income cannot exceed BRL 22,847.76 in 2022, which is the current Income Tax calendar year. “This limit includes all her income, whether taxable, exempt or subject to exclusive taxation”, explains Richard Domingos, executive director of Confirp Contabilidade.

In the declaration, the son must inform all the data referring to the mother, and she cannot have a separate declaration. Therefore, the accountability of the holder must contain wages, income, investments, assets, amounts received in retirement, debts, financing and other information regarding the dependent.

In each form, the taxpayer needs to specify what belongs to the holder and the dependent. “With this data, the program does the accounting. If you exceed the limit of R$ 22,847.76, the program generates an error message and asks you to remove the dependent”, says Domingos.

What care?

The dependent declaration is one of the items that most lead to fine mesh.

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.

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.

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. Expenses with doctors, hospitals and other health expenses are not limited. Education expenses on behalf of the dependent have an annual limit.

• 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

The following may be dependents on 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 (Federal Supreme Court)
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

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?

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

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 (Self-Service Guarantee Fund), 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

DOCUMENTS NEEDED TO DECLARE INCOME TAX?

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