- The income and wealth tax campaign for 2018 runs from 2 April to 1 July, with different dates depending on how you file.
- The return includes changes for families, such as the exemption of maternity and paternity benefits.
- Before confirming the draft, it is worth checking the tax data and any deductions not pre-filled.
The Tax Agency opened the 2018 income and wealth tax campaign on Tuesday 2 April, and it runs until 1 July. From the previous Monday it was possible to ask for the Agency to call the taxpayer by phone. The deadline to file with direct debit of the payment is 26 June, and 28 June is the last day to request an appointment by phone or at an office. Filing in person at partner banks and offices is expected from 14 May.
Each spring, the income tax return is the occasion to review your personal tax position over a whole year, and this year brings several changes that mainly affect families. It is worth spending time on it before accepting the draft, because the Agency’s draft is built from the data it has received and does not always include every personal circumstance or every deduction you are entitled to.
Who must file
As a general rule, those who receive employment income above 22,000 euros a year from a single payer, or above 12,000 euros when there is more than one payer and the second and later ones total more than 1,500 euros, must file. Those with investment income, capital gains or income from business activities must also do so, with other thresholds.
Even where there is no obligation, it may be worth filing to claim a refund, for example when withholding exceeded the tax due or deductions are available. Wealth tax follows a different logic, with an exempt minimum that depends on the region, so it is important to check whether it is exceeded in the region of residence.
What is new this year
Among this year’s changes is the exemption of public maternity and paternity benefits, which is now reflected in the return. The large-family deduction is also extended, up to 600 euros a year per child above the required minimum, for those entitled to it. These changes can improve the result, but they have to be checked case by case.
The changes matter mainly to those who received benefits or have a large family, but regional deductions, which vary from one region to another, also need to be looked at. In Catalonia, for example, there are own deductions that depend on income, type of expense and family circumstances, and they do not always appear in the draft.
What to review
The first step is to check the tax data, that is, the information the Agency holds on salaries, interest, dividends or property, and confirm that nothing is missing or wrong. If a home, shares or a fund were sold, or a gift or an inheritance received, it helps to have the acquisition dates and amounts to hand to calculate the gain or loss correctly.
It is also useful to keep receipts for deductible expenses and review the family situation, since the personal and family minimum depends on ages, disabilities and cohabitation. In a complex situation, such as a business activity, a company of one’s own or investments abroad, it makes sense to consult an adviser before filing. Finally, it is not wise to wait until the last day: those who file early have room to correct mistakes, ask for clarification and, if a refund is due, receive it sooner, while those who leave the return to the final days face more congestion in the support services.
Filing the return on time is an obligation; reviewing it carefully is the best guarantee.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
