Income Tax: how to correct pending medical expenses? – 05/23/2023 – Market

One of the advantages of the pre-filled declaration of the 2023 Income Tax is to bring the data forwarded by paying sources and service providers to your declaration. This is the case of medical expenses, which are informed through the DMED (Declaration of Medical and Health Services) to the Federal Revenue Service.

But sending this data does not mean that the taxpayer should ignore what is informed. Quite the opposite. He is responsible for verifying and confirming what was reported to the IRS, at the risk of being caught in the fine print, mainly because these debts are deductible from the tax to be paid and have no limit.

Because of the deduction, payments made to the healthcare industry are one of the champions of withholding claims. Last year, 21.7% of taxpayers who fell into the fine mesh had as their reason the divergence in medical expenses. “They are usually caused by non-confirmation of information by the receiving party”, informs the Revenue.

And the pre-filled statement has an error in this part, according to accountants interviewed by Sheet. Not all medical expenses are being informed, there are discrepancies in amounts, duplicate data and incorrect CPFs, especially when the beneficiary is a dependent or a person providing food.

How to declare the expense

The declaration of medical expenses is made in “Payments Made”, with a specific code for each specialty

• 09 – Speech therapists in Brazil
• 10 – Doctors in Brazil
• 11 – Dentists in Brazil
• 12 – Psychologists in Brazil
• 13 – Physiotherapists in Brazil
• 14 – Occupational therapists in Brazil
• From 15 to 20 – The same specialties abroad
• 21 – Hospitals, clinics and laboratories in Brazil
• 22 – Hospitals, clinics and laboratories abroad
• 26 – Health plans in Brazil

The taxpayer needs to specify whether the expense belongs to him, a dependent or food, and this information also needs to be on the invoice or receipt delivered by the service provider. If there is no discrimination of who the beneficiary is, the Revenue associates the expense to the holder.

What problems are you experiencing?

In the pre-filled, accountants told the Sheet that there are cases of expenses that belong to the dependents and that the service providers indicate as belonging to the holder.

Another problem is the value of the service provided. The worst situation occurs when the amount declared by the professional or establishment is less than what was reported on the invoice or receipt given to the client.

“In this case, the Revenue must go after it, because health expenses are deductible from the calculation base and this difference reduces the tax to be paid. Therefore, the taxpayer can fall into the fine mesh”, explains Dilma Rodrigues, partner at Attend Contabilidade .

What’s the solution?

When noticing a discrepancy, the taxpayer must change what was pre-filled in the declaration and put the information contained in his receipt or invoice, as he needs to prove what was spent.

If possible, it is recommended that the person notify the professional who provided the service or establishment about the difference and ask that the information in the DMED be changed.

“Otherwise, those who paid and those who received could end up in the fine mesh and have to provide clarification to the Revenue”, highlights Richard Domingos, executive director of Confirp Contabilidade.

Error in health plans

Another problem noted by taxpayers and accountants is the lack of data from health plans. In this case, it is necessary to open a new form in Payments made, select code 26 (Health plans in Brazil), inform if the expense belongs to the holder, the dependent or the beneficiary, fill in the operator’s name and CPF or CNPJ, describe the reason for the expense and declare the amount paid and the non-deductible portion, if part of the amount was refunded.

Accountant Edilson Conrado Ferreira Junior, vice-president of the CRC-RJ (Regional Accounting Council of Rio de Janeiro), explains that the lack of data occurred mainly with smaller health plans. “The most organized ones are coming right away. Those operators that do not have a good governance system are not sending the data to the Revenue”, he says.

Deadline to declare the IR in 2023

The delivery of declarations ends at 23:59 on May 31st. Between 38.5 and 39.5 million declarations are expected. In 2022, the tax authorities received more than 36 million declarations, above the initial forecast of 34.4 million.

WHO IS REQUIRED TO DECLARE INCOME TAX?

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 BRL 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