Avoiding the malha fina: highlights

Wrong and divergent values

In addition to devoting time to fill the form, the taxpayer must review it before submitting. Typing errors or entering values in incorrect fields are easily identified by a data-crossing.

Informing values in the taxable income form different from those provided by the paying sources is a fault easily identified by the system and the one that most leads to the retention of the declaration.

Inclusion of dependents

Firstly, the taxpayer should observe the criteria for classifying dependents. Some taxpayers attempt to include expenses with relatives who do not qualify for the dependency relationship, which is considered a failure.

Another situation that raises doubts is the inclusion of children from separate parents. The dependent, in this case, must be listed in the guardian's report. When there is shared custody, it is necessary to reach an agreement so that the dependent is in only one tax return.

It is important to keep in mind the rule that a dependent's CPF must not appear on more than one tax return. Thus, when two taxpayers share the expenses of children, parents, or grandparents, the family must align who will be responsible for reporting for deducting expenses.

When included in the report, the dependent also “brings” the income, assets, rights and debts. This includes gains related to the internship scholarship and alimony, for example.

Alimony

While income, alimony is taxable and must be reported by the holder of the statement, even if the pension is payable to a dependent.

Those who pay a pension registered in a judicial agreement can deduct 100% of the taxable income.

Medical expenses

According to the rules, health expenses can only be deducted when they are made for their own benefit or for dependents, upon proof by means of notes and receipts. The proofs must have the health professional's signature, name, CPF (Individual’s Taxpayer Number) and patient data.

Listing medical expenses with values other than receipts and not informing the amount reimbursed is a quite common mistake that has led taxpayers to have the statement retained.

Education expenses

The deduction of expenses of the taxpayer and dependents is only allowed for children's, elementary, high school, and college tuition, including university, master's, doctorate, and specialization courses. Furthermore, there is a deduction limit for this expense: BRL 3,561.50 per registered person.

Daycare expenses, language, and other extracurricular courses are not deductible.

Rent expenses and income

Both those who receive and those who pay rent must list the earnings/payments in the statement. The rent gains are taxable and must be reported. The expenses are not deductible.

Gains on shares

If the total value of the sale of shares on the stock exchange in Brazil exceeds BRL 20,000 in a month, the taxpayer will be taxed on the net profit of the operations.

Profits from day trade operations (buying and selling on the same day) and Real Estate Funds generate income tax on any operation, regardless of the total amount of sales for the month. In this case, the tax rate is 20% on income.

See also: Taxation on investments: individuals should analyze the effects of taxes on profitability

Rely on experts and avoid the risk of going through the malha fina

Supported by DPC, the taxpayer can have peace of mind about completing the tax return, especially when this obligation involves special, more complex situations, eliminating the risk of having the return filed after the deadline or being caught by the inspection due to inaccuracies or omissions.