The Income Statement is here. As of April 4, any taxpayer can request the draft of their declaration and confirm it if they agree. But before doing so, you have to take certain precautions and make sure that we don’t overlook anything. Does it reflect our pension plan? And the deductions for maternity? What about the second residence?
In this article, we are going to analyze the main mistakes we make when filing the return and what we can do to improve this process. Do not miss it!
Failure to submit the Declaration
Not all taxpayers are required to submit the income statement. In the case of a single payer, only those who have deposited more than 22,000 euros, for example.
However, being extensive does not mean that it is not advisable to request the draft at least. If the company for which we work has applied a high withholding on the payroll, if we collaborate with NGOs and social entities, etc. the result that we obtain is very likely to be returned.
Unemployment is also taxed
For the Treasury, collecting unemployment is considered an income from work and therefore has to be taken into account when making the income statement.
Among the requirements stipulated by the Tax Agency, it is worth highlighting the fact that those taxpayers who have received more than 12,000 euros in the last year from more than one payer, must present the return. In this situation are the majority of taxpayers who in the last year have received unemployment for a few months, before or after another work activity.
Not reviewing the draft before signing it
The draft of the Income is not without errors. Why? Because it is basically made from the information provided to the Tax Agency by third parties : our workplace, NGOs, banks, etc.
First, the data provided by these third parties may not be accurate. And secondly, there may be data that has not been included, such as possible investments, real estate returns, etc.
Finally, it must be taken into account that signing the draft does not exempt us from a future inspection if the data we have confirmed is not correct.
Maternity deductions
Since 2003, taxpayers can take advantage of maternity deductions. These deductions can reach up to 1,200 euros per child and in the case of adoption, the deduction can be made regardless of the age of the minor.
One of the ways to access this deduction is to indicate it on the income statement. And here we return to the previous point. This deduction is not always indicated in the draft that the Treasury sends us.
To calculate this deduction we must go to box 551 of the section “Calculation of the tax and result of the return”. Clicking on this box will open a window that will request additional data with which to calculate the total amount of the deduction.
Tax relief for habitual residence
In the fiscal year of Income 2017, taxpayers may continue to apply the corresponding deduction for the acquisition of a habitual residence, as long as the dwelling has been acquired before January 1, 2013.
For this deduction to be possible, we must not only be registered at the address where we want to apply this deduction, but it must be the one where we regularly reside. In the case of an inspection, we must be able to demonstrate that we have moved in within one year from the purchase of the property and that we have been residing there for at least three years.
And second residence
Although we can only deduct a single residence, this does not mean that we should exclude from our income tax return the rest of the properties that we own.
Whether they are rented or not, we must indicate that these properties are our property.
What about the rent?
Most of the autonomous communities continue to maintain certain tax deductions for the rental of a home. Most choose to support tenants who meet a number of conditions. In addition, some also offer deductions to landlords. Only residents in La Rioja and Murcia do not enjoy any type of regional help in this regard.
Along with the autonomous, the income statement also reflects the state deductions for rental assistance . In some cases, the landlord can deduct up to 60% of the income linked to it. However, in the case of tenants, only those who signed the lease before January 1, 2015 can benefit from this relief .
Children and spouses
What happens to the children who live in the family nucleus? For a typical family, in which a child under 25 years of age has to make the income statement (and their income does not exceed 1,800 euros per month), the most interesting thing is that this statement is included in that of the parents. Why? Because the return of the income that the child will receive is usually less than the benefit of including him in the family unit together with the parents.
Another cause is when one of the spouses has died in the last fiscal year. Normally, it is usually chosen not to make the declaration of the deceased but the truth is that making it can be interesting if the beneficiary is an heir.
Pension plans
Contributions to pension plans are deducted in box 416 of the form. If it is not reflected in the draft we receive, we must indicate it manually.
If we are also charging for any type of pension abroad, we must indicate it in the personal income tax as part of the income from work.
Forget about the MOVEA Plan
Although it is extensible to any aid and subsidy from the State, the MOVEA Plan for the acquisition of electric vehicles is one of the stars of this year’s declaration.
The MOVEA Plan is taxed on the 2017 income statement as Capital gains and it is mandatory that you include it in your personal income tax. Failure to do so may result in a penalty.
