Savings

Discover the new rules for announcing savings

All citizens are required to declare Income tax Those with a savings account must submit their account information to the IRS. However, it should be noted that savings are tax deductible. Find out how to report this investment on your tax return.

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Unlike other types of investments, taxpayers do not have to pay taxes on savings. But this does not eliminate the need to declare the account. This is the great confusion on the part of many Brazilians. So watch how easy it is to declare.

Announce savings in IR

First, the Federal Revenue requires balances over R$140 to be declared, so if this is your case, just go to the Property and Rights option.

In the tax system, the symbol for savings is “Group 4 – financial investments”. Next, the taxpayer must click on icon 1, where the highlight “Pay into a savings account” appears. The next step is to click “New”. The IRS will ask if the savings belong to the advertiser or a dependent. See what your condition is.

Next, it is necessary to indicate the country in which the taxpayer is located and fill in other information about the savings account bank. The next step concerns values. You must report the account balance between December 2020 and the same month in 2021. That is, within the base year period for the current tax return.

Since it is tax exempt, after providing this information, the taxpayer must take a further step to declare IR. savings. It is also found in the Assets and Equity tab, this time only in the Exempt Income option. The taxpayer will click on “Linked income” and declare the savings income.

The same process must be repeated for all savings, if the taxpayer has more than one saver, including dependents. Remember that the tax filing deadline ends on May 31.