Filing your IRS return is becoming increasingly simple, but that doesn't mean you're paying the minimum possible. Small details can mean a lot of money. In this Savings Accounts segment, we'll give you tips to increase your Income Tax refund.
Changing a line or checking a specific box can mean hundreds of dollars more or less on your IRS return.
Nobody likes paying taxes, but due to a lack of financial literacy, many taxpayers file pre-filled IRS returns and accept what's there without bothering to use rights and deductions that can represent a lot of money.
So, let's get to the most common tips to increase your IRS refund.
Since March 15th, the final page for deductions from the tax payable has been available to all taxpayers. It's not the E-invoice, it's another page within the Finance Portal. Search for "deductions" in the search engine and you'll find it.
It's with the data here that your income tax return will be pre-filled.

Try to find out, before filing your tax return, if you are missing any important invoices or if there are any errors that could harm you. Don't forget to also check the deductions for your spouse and each of your children.
Youth Tax Return
That said, let's go to the Youth Tax Return.
This is the first year that all young people up to 35 years old are covered, and they count their first 10 years of work with consecutive or intermittent income.
If they open the Tax Authority Portal on their own, the entity will offer the young person an automatic Income Tax return with the rules already applied. We are talking about more than 200,000 possible declarations.
Note that you are only entitled to the Youth Tax Return if you leave the household and file your tax return on your own.
But be aware, if you earn less than €8,500 per year and are under 26 years old, it may be advantageous to continue as a dependent of your parents. Therefore, it does not count as a year of income for the 10 years of tax benefit. In this case, you should refuse the automatic tax return.
Now let's move on to another tip that we repeat every year. You should always compare filing your tax return jointly or separately and always choose the best option. This can vary every year.
Also pay attention to those who have a Multipurpose Disability Medical Certificate. If I don't submit it to a tax office, it won't be valid. Those who have this document with a disability rating of 60% or higher pay almost no taxes.
In addition to paying less tax, don't forget that - in Annex H - you should also change rehabilitation and education expenses to line 606 and include, if you have it, life insurance, even if associated with a mortgage, on line 605. With these two changes, you can increase deductions by hundreds of euros.
One more tip: if you have a low income, you should always simulate including the interest you received from term deposits, savings accounts, and rents. In some cases, you can recover the entire withholding tax withheld at source.
Another warning: Many people are buying and selling houses. The Tax Authority has found hundreds of cases of people who forgot to mention, in the last three years, that they reinvested the sale proceeds in a new permanent home. Because they didn't do this, they forgot and are now receiving letters demanding the return of tens of thousands of euros.
Another important piece of information is also highlighted: if you inherit a property with other people, you don't pay capital gains tax if they sell the house before the division of assets. If they divide the assets, there's nothing more to be done, and you will have to pay capital gains tax now when you file your income tax return.
Will this year's income tax refund increase or decrease?
Finally, let's do the math. Will this year's income tax refund increase or decrease? Of course, each case is different, but the forecast from the Order of Certified Public Accountants is that many taxpayers will again receive less or even have to pay, but for a good reason. They already received that money last summer. Get ready, this is going to be the trend. We're going to receive less and less income tax refund each year.

Finally, a warning for Portuguese people who were emigrants and receive pensions from abroad. If they now live here, they are legally required to file their income tax return with Annex J. Many people think it's not necessary.

This is a warning so you won't be surprised by a letter demanding thousands of euros to pay unexpectedly.

News: Savings Accounts / SIC News
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