How to file your income tax return: updated

How to file your income tax return: step by step

Check out the detailed step-by-step guide on how to file your income tax return.

Filing income tax is an annual obligation for many Brazilians, including freelancers, entrepreneurs, and small business owners. Understanding the process can seem daunting, but with the right guidance, it is possible to file your tax return efficiently and correctly. This updated guide aims to simplify the process and provide a detailed step-by-step guide so that you can declare your income without complications.

In this article, we will cover the necessary documents, specific steps for different professional profiles, and practical tips to avoid common mistakes. With a practical and straightforward approach, you will learn how to file your income tax return and ensure that all information complies with the requirements of the IRS. Let's get started!

1. Required Documents 📑

Before you start filing, organize all the necessary documents. Here is a list to help:

• Receipts and invoices of services provided
• Proof of income provided by customers
• Financial income reports (banks, investments)
• Deductible expenses (health, education, social security contributions)
• Documents of assets and rights (real estate, vehicles, etc.)

📌 Tip: Create a specific folder on your computer or in physical format to store all of these documents throughout the year.

2. Step by Step for Self-Employed and Liberal Professionals 👩‍💼👨‍💼

1. Gather Information 📋
   • Collect all income information obtained during the year.
   • Organize documents of expenses that can be deducted.
2. Access the Federal Revenue Program 💻
   • Download and install the declaration generator program (PGD) on the Federal Revenue website.
   • Use the system e-CAC to access information already available for your statement.
3. Fill in Personal Data 📝
   • Enter your personal details and those of your dependents.
   • Update your address and other contact information.
4. Declare Income 💰
   • In the “Income Received from Individuals/Abroad” tab, report all amounts received for the provision of services.
   • Include exempt and non-taxable income, if applicable.
5. Report Deductible Expenses 🏥📚
   • Declare all health, education and other expenses that can be deducted.
   • Keep receipts for these expenses for possible verification.
6. Review and Correct 🔍
   • Review all information entered.
   • Use the program's verification function to identify possible errors or inconsistencies.
7. Submit the Declaration 📤
   • After reviewing, submit the declaration through the program itself.
   • Save and print the delivery receipt as proof.

3. Step by Step for Entrepreneurs and Small Business Owners 🏢

1. Gather Company Documents 📑
   • Have on hand the balance sheet and the income statement.
   • Organize operating expense and investment documents.
2. Report Company Income 💼
   • Declare the profits and income obtained by the company.
   • Include the values of pro-labore and profit distribution.
3. Declare Operating Expenses 💸
   • Report all expenses related to the operation of the company that can be deducted.
   • Include expenses with suppliers, payroll, and other operational expenses.
4. Report Company Assets and Rights 🏠🚗
   • Declare real estate, vehicles and other assets acquired by the company.
   • Update information on assets already declared in previous years.

CHECK OUT MORE DETAILS ON HOW TO DECLARE INCOME TAX

1. Review Information 🔄
   • Review all company and personal information.
   • Correct any errors before submitting.
2. Submit the Declaration 📧
   • Submit the declaration through the Federal Revenue program.
   • Please keep the delivery receipt as proof.

4. Useful Tools and Resources 🛠️

Here are some tools that can make filing your income tax easier:

• Declaration Generator Program (PGD) – Available on the Federal Revenue website.
• My Income Tax App – For smartphones, making declaration easier.
• Accounting Consulting Websites – They offer support and tips on filling it out.

5. Practical Tips to Avoid Common Mistakes ⚠️

• Keep documents organized throughout the year.
• Review all information before submitting the declaration.
• Use verification tools of the Federal Revenue program.
• Do not omit income or important expenses.
• Consult an accountant in case of complex questions.

Pay attention to details ✅

Filing your income tax may seem complicated, but with organization and attention to detail, it is possible to complete the process efficiently and correctly. Follow this practical guide and stay in compliance with the IRS, avoiding future problems and possible penalties.

Remember to file within the deadline to avoid fines and interest. Good luck! 🚀