How to declare Income Tax for the first time? 

Filing your income tax return for the first time can be intimidating for many people, however, it is extremely necessary. 

So, if you feel insecure about this, calm down and read our text until the end. Today, you will find out how to declare Income Tax for the first time.

In addition, you will also find some important tips for filling out this document correctly, what happens if you fill it out incorrectly and much more! 

Don't forget to follow! 

Who needs to declare?

According to the rules of the Federal Revenue Service, taxpayers who, in the calendar year, fall into one of the following situations are required to declare Income Tax: 

• has received taxable income with a total value exceeding R$ 28,559.70 (or above R$2,380 per month); 
• received exempt, non-taxable or exclusively taxed income at source with a sum greater than R$40,000.00; 
• has obtained capital gains from the sale of goods or rights subject to tax;
• carried out operations on the stock exchange, futures or options market; has obtained gross revenue exceeding R$142,798.50 from rural activities;
• owns assets or rights, including bare land, with a value greater than R$300,000.00;
• be a resident of Brazil and receive income from abroad; or have become a resident of Brazil in any month of the calendar year. 

How to declare Income Tax for the first time?

Before declaring, the first action to be taken is to gather the necessary documentation, such as: 

• Income report issued by paying sources; 
• Proof of medical and dental expenses; 
• Receipts for rent paid and received, if applicable; 
• Proof of education expenses;
• Information about the purchase and sale of goods, such as real estate and vehicles;
• Bank statements; 
• Reports on income from financial investments;
• Between others. 

Organize yourself in advance to avoid possible errors in the declaration.

The next step is to choose the form of declaration. There are three ways to declare Income Tax. 

The first option is using the Federal Revenue Service (IRPF) declaration program, available for download on the official website, which can be run on the computer.

The other way is through the “Meu Imposto de Renda” app, available for smartphones and tablets.

Finally, the third alternative is through the portal e-CAC, in the case of taxpayers who have a digital certificate.

For those who are going to make their first declaration, the process must be done from scratch, that is, all information must be provided.

However, in future years, it is possible to make a declaration based on the previous year's declaration, which can make the process easier and faster.

In addition, it is also possible to pre-fill it, as it already has current data from other declarations submitted to the IRS.

You can choose between the full or simplified model. The full model requires you to provide more information, such as additional expenses for education and pharmacy, for example.

In addition, it is possible to include dependents, which can guarantee a discount on the tax due.

However, if you have no dependents or additional expenses, you can opt for the simplified alternative, which is easier and quicker to declare. 

What happens if I fill out the Income Tax form incorrectly? 

One of the reasons why you should know How to declare income tax for the first time is that, if the declaration is filled out incorrectly, it may have some consequences. 

See below some of these negative consequences. 

1. Fines and penalties

The Federal Revenue Service may apply fines and penalties if it identifies errors or omissions in your declaration. 

These fines may vary depending on the severity of the infraction and may be calculated as a percentage of the amount of tax due. 

2. Rectification of the declaration

If you realize that you have made mistakes or omitted information in the declaration, you will need to rectify the document. 

Rectifying the declaration is an additional process that can cause inconvenience and rework. 

3. Fine mesh

If inconsistencies or signs of tax evasion are identified in your declaration, you may be caught in the so-called “fine mesh”. 

In this case, the Federal Revenue Service will carry out a more detailed analysis of your case, requesting additional clarifications and evidence.

This analysis may lead to an audit process and, in some cases, may result in additional taxes being charged.

4. Future problems

Errors in filling out the declaration may have future consequences, such as difficulty in obtaining financing or carrying out real estate transactions, if the declared amounts are incompatible with your real income. 

It is important to emphasize that errors or omissions that are identified later may be considered evidence of tax evasion, which may lead to administrative and even criminal proceedings.

Therefore, it is essential to fill out the Income Tax return carefully, attentively and correctly.

See below for some tips that may help you. 

How to fill out the Income Tax return correctly? 

As already noted, filling out your Income Tax return correctly is very important to avoid future problems with the Federal Revenue Service. 

In this topic you will find some tips that can help you when filling out the declaration.  

✅Organize all necessary documents

Gather all documents and proof of your expenses and income, such as income statements, medical receipts, proof of payment of education expenses, among others. 

Have everything on hand before you start. 

✅Stay informed about the rules

Read the Federal Revenue Service instructions carefully to find out about the current rules for declaring Income Tax. 

Stay tuned for changes and updates to the rules.

✅Use a reliable program or application

Use a specific program or application to complete your income tax return. They make filling out the form much easier and help you avoid mistakes. 

✅Fill in all fields correctly

Fill in all fields of the declaration carefully. Avoid leaving fields blank or filling in information incorrectly. 

Check the data several times before confirming the submission and fill out the declaration calmly, setting aside appropriate time for this. 

✅Declare all your income

Declare all your income, whether from salary, rent, retirement, pension, etc. Do not omit any amount. 

✅Report all your deductible expenses

Be sure to also correctly report all your deductible expenses, permitted by the Federal Revenue Service, such as medical expenses, education, donations, alimony, among others. 

As already mentioned, it is very important to have proof of these expenses on hand.

✅Be sure to inform your assets and rights

You must inform your assets and rights, such as real estate, vehicles, investments, among others. 

Keep supporting documents for these assets for possible future verification.

✅Keep the receipts

Be sure to keep the receipts used in the declaration for at least five years. 

The Federal Revenue Service may request proof of the declared amounts and it is important to have these documents on hand.

✅Don't leave it until the last minute

Avoid leaving the declaration until the last day. Fill it out calmly and in advance to avoid errors and corrections later. 

✅Consider seeking professional help

Filing your income tax return isn't rocket science, but some people still find it very difficult to do so. 

Therefore, if you have any doubts or a more complex situation, do not hesitate to consult an accounting professional or an accountant. 

They can help you complete your return correctly and advise on best practices.

Conclusion

In this text you discovered How to declare Income Tax for the first time. If you are feeling insecure, the ideal is to seek help from a professional or an experienced person. 

The price charged for this type of service is not high, so it is also performed annually. Therefore, it is a good idea to plan to pay a professional to help you with this issue.

However, if you want to save money, read our tips carefully and file your own tax return. 

Enjoy and read it too 👉 Santander Income Tax Refund: money in hand sooner than you think!