IRPF 2023: see how education expenses are deducted – 03/04/2023 – Market

Education expenses are among those that allow deduction in the 2023 Income Tax declaration. This means that those who declare these expenses receive a larger refund or pay less tax to the Federal Revenue.

However, not all expenses are deductible and there is still an annual limit for declaring them. According to IRS rules, it is possible to deduct the expense of the holder or his dependents. In the case of education, the annual limit is R$ 3,561.50 per person.

Among the expenses that are accepted by the Revenue are expenses with kindergarten, elementary, middle and higher education, including daycare, technical education and post-graduation. School material, books and language courses, sports and preparatory courses for college entrance exams and competitions cannot be deducted.

The use of equipment for distance learning also does not allow deduction, as well as expenses with housing and transportation in Brazil or abroad. “One-week improvement courses, which do not lead to a diploma or title, are also not deductible”, says tax lawyer Jonathas Lisse, from VRL Advogados.

“The declaration of the dependent can only be made by one person. The most common mistake is for both parents to declare the child as a dependent. If that happens, the Revenue will put the declaration in the fine mesh”, says Lisse.

What are the expenses with education that can be deducted in the IR?

The amounts paid in enrollment and school fees to the following educational establishments may be deducted:

• Early childhood education, including daycare and preschool

• Elementary School

• High school

• Higher education, including undergraduate and graduate (master’s, doctoral and specialization)

• Technical, technological or vocational education

• Teaching abroad if you fit the above situations

What expenses cannot be deducted?

• Extracurricular courses such as language classes, sports, dance, art, cutting, sewing and others that do not offer a professional diploma

• Books, handouts, school supplies and uniform

• Payment of transportation to school and housing in Brazil or abroad

• Equipment such as computer, notebook and internet use for distance learning

• Pre-university course or for competition, online courses without diploma or title

I am taking a professional improvement course. How do I know if it makes the deduction list?

The course must be technical or vocational. The suggestion is to look for the person responsible for the course to find out if it fits into this situation.

Is there a deduction limit?

Yes. The deduction limit per person is BRL 3,561.50. Therefore, if you have a spouse, who appears as a dependent on the IR declaration and is studying, and two more dependents, you can deduct up to R$ 10,684.50 in the declaration, for example.

My spouse and I have a dependent, but we file separate declarations. Can both declare education expenses with the dependent?

No. Only one person should declare spending on the dependent at the risk of falling into the fine mesh. With this, education expenses should only be included in the statement in which the child appears as a dependent. “If the dependent makes his own declaration, the parents should not declare him as a dependent, also under the risk of fine mesh”, warns Lisse.

In addition, there are rules for declaring dependents. One of them allows the child or stepchild to be dependent on the IR for up to 24 years, if he is studying. This rule must also be observed.

How do I declare?

The deduction of education expenses can only be made in the complete model, that is, with legal deductions. For those who had already declared the dependent in the previous year, the pre-filled declaration brings the data. It is also possible to import information from the IR made in 2022, if it is on the same computer.

Expenditures on education are declared in Payments made. For those who opted for pre-filled, it is necessary to check all the information. Consultants also recommend changing the description to detail the expense. To do so, select the item and click edit. Then, type the information in the Description field. Make your changes and click OK.

Inform whether the expense belongs to the holder or the dependent. See the step by step:

1. Open the Income Tax program
2. Go to Payments Made
3. Click on New and select the expense code: 01 (Expenses with education in Brazil) or 02 (Expenses with education abroad)
4. Select whether the expense belongs to the holder, dependent or feeding
5. If you have more than one dependent or fed, each one of them will be declared in a new form, clicking on New
6. Fill in the name and CNPJ of the establishment that received the amount
7. Enter the paid amount and click OK
8. Repeat the process for each expense in each establishment and for each dependent or food source.

How to exclude an expense with education in the pre-filled statement?

If your child changed schools between one year and another, the program will bring the information declared in the previous year, that is, with the name of the old school. To change, click on the name of the school and the dependent, in the IR program, and go to “Exclude”, below, on the right

I received a scholarship. What do I do?

When the scholarship characterizes a donation (received exclusively for study or research, and the result does not represent an advantage for the donor and does not characterize the provision of services), the amount must be declared in Exempt and Non-Taxable Income.

In this case, click on New, select the code that fits the situation (01 or 02), fill in the name and CNPJ of the person who paid the amount, and the amount received.

If the amount received represents some advantage for the donor or is a provision of services, the amount must be declared in Taxable Income Received from Legal Entities. This is the case, for example, of the amount transferred to a resident doctor or through Pronatec.

For the statement, you must click on New, select code 02, fill in the name and CNPJ of the person who paid the amount, and the amount received.

Who is required to declare income tax in 2022?

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 the 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

How to make the declaration?

The first step is to download the 2023 Income Tax program onto a computer. It is also possible to complete and deliver on other platforms. The second step is to fill in all the necessary forms, such as taxpayer identification, income, assets and rights, in addition to payments made and debts, if any.

Afterwards, the taxpayer needs to check the data and make sure of the best type of declaration, whether it is for legal deductions or simplified discount. Filling errors lead to fine mesh.

Before starting, have all the necessary documentation in hand regarding income from wages, rents, financial investments, Stock Exchange, credit card, among others, as well as proof of deductions allowed in the statement, such as health and education, for example, advises Valdir Amorim, legal and tax technical coordinator at IOB.

What to do to not fall into the fine mesh?

The taxpayer required to declare the Income Tax must be very careful when reporting income and expenses to the Federal Revenue Service. Any error can take you to the fine mesh, which causes the statement to be withheld, without the release of the refund, and there is still the possibility of being fined.

In order not to make a mistake, you must inform all income received in the year, such as salary, odd jobs or rent, for example, including retirement and pension, if applicable. Also report the income of dependents. In addition, it is necessary to pay close attention even to the declared commas and zeros.

Another tip is to deduct only what is allowed by legislation in spending on health, education, private pension and official pension, among others.