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  • Writer's pictureJoana Wheeler

Guide to saving on your IRS: what you can (still) do by the end of the year

Updated: Jul 14, 2022

Next year's IRS seems (still) a mirage. However, this is not the case. Unfortunately, the vast majority of taxpayers only remember about the savings whist they are filling out the IRS and presenting their yearly income statement, because that's when they realize they didn't make enough discounts to avoid being audited.


It is best to start "putting your ducks in a row" straight away in order to maximize your tax refund or lower the amount you will have to pay. Do you, for example, regularly ask for invoices with your NIF*? This is only one suggestion; there are plenty more.

Start organizing all your invoices. Make sure that the invoices you request are entered in the Finance Portal** correctly, and validate all invoices that are shown as in “suspended mode”.


It is importante to control the amount of deductions already accounted for by the fiscal office. This is critical in order to determine if the limits have been reached or whether you should ask for more invoices with your NIF* by December 31 (which is just a few days away!).

The current deduction plan permits the tax to range between 1,000€ and 2,500€, depending on the IRS tier in which it is included, assuming the taxpayer manages to spend enough to absorb the maximum allowed.

Only taxpayers in the first tier (with a collectible income of up to 7091€) can deduct without any limit. In families with three or more children, the limits are increased by 5% for each child.


Find out in the table below, everything about each category and what maximum values you can deduct in each sector. See what you can use to save on the IRS.


Deductions by category

Sector

Deduction (%)

Maximum amount (€) per taxpayer

Expenses included

Health

15%

1.000€

– Acquisition of goods and services free of VAT or subject to the reduced rate;

– Acquisition of goods and services with VAT at the normal rate, provided that they are duly justified by prescription;

– Health insurance premiums or contributions paid to mutual associations or non-profit institutions for the purpose of providing health care. Thus, those who bought health insurance, paid at the end of the year 85% of the premium, since it can be discounted. Don't forget that if you spend more than a thousand euros a year, you won't end up not saving so much.

Education

30%

800€

– Daycare centers, nurseries, schools, educational establishments and other education services; – Textbooks and textbooks; - School meals; - Accommodation for displaced students.

Properties

15%

502€

– Real estate rents for permanent housing.

Properties

15%

296€

– Interest on the payment of installments for housing credit agreements signed before December 31, 2011.

Properties

30%

500€

- Rehabilitation of property.

Homes

25%

403,75€

– Expenses incurred with homes and residences for the disabled or disabled who are in charge of.

General Expenses

35%

250€

– Water, electricity, gas, clothing, supermarkets or fuels.

Retirement Savings Plans

20%

400€

– Persons under the age of 35.

Retirement Savings Plans

20%

350€

– Persons aged between 35 and 50 years inclusive.

Retirement Savings Plans

20%

300€

– Persons over the age of 50.

IVA

15%

125€

– Catering, hotels, hairdressers, car and motorcycle repair.


*Fiscal Number

** Portal das Finanças

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