The 2024-2025 Income Tax Return campaign is about to begin, and being well-informed can make the difference between overpaying or making the most of available tax benefits. In this article, we outline the key updates for this tax season, the most common mistakes when filing, and practical tips to streamline the process.
Updates for the 2024-2025 Income Tax Return
Each year, the Spanish Tax Agency introduces changes that may impact taxpayers. Here are some of the key updates for this season:
- Updated IRPF tax brackets: Adjustments have been made to tax brackets, which may affect the withholding rate applied to taxpayers.
- New tax deductions: Additional benefits are available for families with children, people with disabilities, and home energy efficiency improvements.
- Crypto asset reporting: The obligation to declare cryptocurrency investments is reinforced with the introduction of Form 721.
- Changes for self-employed individuals: Modifications in the objective estimation system and stricter controls on deductible expenses.
- Tax benefits for remote work: Expanded conditions for deducting expenses related to working from home.
Common Mistakes When Filing Your Tax Return
To avoid issues with the Tax Agency, be aware of these frequent errors:
- Not reviewing the draft: The AEAT provides a pre-filled tax draft, but it may contain errors or miss applicable deductions.
- Forgetting to declare additional income: Rental income, investments, or temporary jobs must be included.
- Not claiming available deductions: Expenses related to housing, education, or donations can reduce your tax burden.
- Personal data errors: A simple mistake in your NIE/NIF or marital status can delay your refund or cause issues.
- Filing late: Late submissions can result in significant penalties.
Practical Tips for a Smooth Tax Return
- Consult an expert: A tax advisor can help you maximize deductions and avoid costly mistakes.
- Review early: Don’t leave your tax return until the last minute, check your draft in advance.
- Use digital tools: Platforms like Renta Web simplify the filing process.
- Keep all receipts and records: Organizing your tax documents can prevent issues in case of an audit.
- Consider installment payments: If you owe taxes, you can opt to split the payment into two installments.
Get Help from Entre Trámites
At Entre Trámites, our team of experts can help you file your Income Tax Return quickly, accurately, and hassle-free. We also offer a free consultation to answer your questions and ensure you claim all possible deductions.Don’t wait until the last minute! Contact us today and avoid unnecessary stress.
