How a simple cross can give you more money for the IRS – The Economic Journal


If you are renting a property, you will receive an maintenance allowance, or an interest in time investment, one of the decisions you need to make when you register for IRS return for 2018 which you choose you add this income or choose to enroll at an independent rate of 28%. This conclusion can make a difference to the hundreds of eurosan in your IRS. We will tell.

What is a designation? T

Those with an income from a variety of categories (income from pensions, income from a rental house or capital income) can decide how they are carried out t select: Select an independent tax (which is normally) or circulated.

What is known as “fees” is the income available to the taxpayer to select to include his other income each year t , in addition to salaries, in normal income. In other words, the introduction of the position means that the income will be shown in line with your IRS tax (rates rising from 14.5% to 48%) and t this is not by the independent level of 28%.

Please note, therefore at the time of the IRS process, the issue is whether or not it will appear in the different appendices. It is the advice that has arisen in all cases that it will not go through the question without notice and that it is not in a matter to find out which option will be available for re-election. higher billing you. t

What type of income can I introduce? T

– Time deposits

– Household income

– Stock

– Loyalties

– Food allowance

– Foreign income

You can only select which areas you want, ie the option for one of the categories does not need to include that all other people will be included.

When is this option advantageous?

– Where tax receipts – received by the amount of all previous year's income, include gross interest – less than 10,700 euros. In this case a tax rate of 23% is used;

– Where there is a negative balance between capital and loss benefits, which may be reported over five years in the G income category of the declaration;

– Finally, taking advantage of corpus is advantageous if, in 2018, there was a clearer balance between capital and loss gains, but in previous years it has lost itself.

How should I use this option on the IRS? T

You can indicate your choice in the IRS annex which refers to the category of income you wish to include. For example, to consider the rental of real buildings, you must only insert it in Table 7b of Annex F. In the capital benefits case, you may select this option in Table 15 of Annex G. t

  • Example of the operation englobamento:

In 2018 Francisco received about € 16,800 as a reliable employee. In addition to this income, he also received about € 13,000 in real estate rent.

When you receive your IRS, Francisco can choose to include (or not) this income. However, to make your decision important it is important to check the results of these two situations:


In a more simplified format, not including income, the € 16,800 will be shown at 28.5% (considering the specific transfer), with an allowance on dividends. € 992.74. In this way, the tax rate is £ 2,625.62.

Similarly, on the income received, fees will be charged at around 28%, or € 3,640.00.

Overall, a a fee payable of € 6,265.62.

With guilt

If Francisco chooses to include land income, his total income will be subject to a 37% discount and an allowance of € 2,714.93 will be deducted. This will result in a charge of € 6,792.59

Informing the situation without a fuss, Francisco can receive a saving of € 526.97.

Source link