Personal income tax is designed to adjust to the conditions of each person, so it is necessary to show everything we have (both income and expenses) in order to calibrate our bill.

Identification data

This includes the DNI, IBAN number or numbers of our bank accounts, cadastral references that identify properties owned and, finally, a Digital Certificate or access through the Cl@ve PIN to be able to carry out the procedure online.

Personal and family data

Any change in the family structure must be specified, such as getting married, divorcing, having children, becoming widowed, etc. Authorization and a photocopy of the ID of the members of the family unit must also be presented. If you are enjoying public pay during retirement, the pension certificate sent by the Ministry must also be included. And the same in the case of receiving aid due to some type of disability, for which it will be necessary to show the disability certificate.

Tax situation

Time to talk about money, our topic and yet the one that tends to scare the most. So we will try to go into a little more detail so that you lose all the fear.

Bank certificates: Every year your bank or savings bank issues a certificate that shows, in a transparent way, all the products you have and the total money. But before you get scared, what interests the Treasury here is to see what benefits any investment or deposit may have generated during 2023. If they exist, they are taxed.

Certificate of withholdings and income: As you know, your company already dedicates a percentage of your salary to advance that personal income tax month by month. Something very similar in the case of the self-employed, who have to tax their invoices with a percentage. With these certificates you can not only see how much you have paid, but also how much you have already paid in personal income tax and, therefore, should not pay. This is one of the main reasons why they can refund us money, and it is that it is possible that we have paid more throughout the year and, therefore, now it is time to compensate for the situation.

Income: If we own a property that generates a profit through rental, we must also present the income imputation certificate. This will serve to determine the return generated by the asset during the past year.

Tax deductions

Beyond the family situation, certain circumstances allow us to qualify for tax deductions that will lower our bill or even pay it back. Here we find mortgages and other pending loans, making donations or having some type of political or union affiliation.

If we rent, it is important to specify it in this section. To do this, we must provide the landlord's NIF and the monthly payments paid during 2023. In fact, many real estate agencies and property managers already provide this prepared document to tenants.

Finally, in the case of self-employed workers, this also includes expenses derived from training, medical bills, dentists, investments in equipment...

The Draft or “Borrador”

Although it is not something you should present as such, having the Draft usually simplifies the task. In case you don't know, this document provided by the Tax Agency is an estimate of our returns, so if the data match it is a very good indication that the presentation is going to go smoothly.

Don't worry if they don't fit 100% either. Obviously your circumstances may have changed compared to 2022 and something may have to be adjusted. But, in general, most of the data should be correct and the modifications minimal.

If you're wondering when and how to get it, the answer is simple. You can easily obtain it through the Tax Agency website from April 3, the date on which the presentation campaign begins.

Individual or joint income?

You have probably asked yourself this question if you live as a couple (or have minor children). In general terms, the answer depends on the level of total income that you can add.

In general, if both members of the couple work, it is best to do it separately, while if one of the two stays at home or are single-parent families with minor children, it is better to do it jointly. To be completely sure of which is the best decision, we recommend that you take a look at Individual or joint declaration: what is better?

What happens if I have two sources of income? 

Having found a new job in 2023 may not be such good news when it comes to submitting the Income Tax Return in 2024. And if this is our case, we must take into account that the limits are reduced and taxes rise. If you want to know more about how it would be computed in your case, take a look at our article on two or more payers on the Income Tax Return.

What is the best way to save while doing the Declaration de la renta? 

The first and most important thing is to make sure that your company (or yourself as a freelancer) is applying the correct withholding. If in doubt, you can always use one of the many calculators that exist online. And if they still don't clarify it for you, remember that it is always better to have a little left over rather than missing it, since this could make the difference between getting a refund or paying.

On the other hand we have deductions. As you have seen, this 2024 there are new ones that you can benefit from, but they are not the only ones. There are also for people who invest, professional insurance and other types that serve as a salary supplement, professional expenses... Discover more ways to save on your Declaration.

Reference: https://www.vivemasvidas.com/finanzas/gestiona-tu-dinero/novedades-declaracion-renta