Errors in the Income Tax Return: Key Tips and Precautions

Every year, the income tax filing season marks a crucial time for taxpayers in Spain. However, the process can become complicated and error-prone, especially when drafts are handled in haste. According to some reports, up to 70% of drafts have errors in the income tax return. To avoid unnecessary complications, it is essential to understand what's new in the 2023-2024 income and carefully review some key aspects. Our partners at Entre Trámites share with us important steps to avoid common mistakes.

Key steps to avoid errors in the income tax return:

The first step to avoid mistakes on your income tax return is to familiarize yourself with the process and important dates. Knowing the filing deadline and return dates can help you plan better and avoid last minute rush.

Most taxpayers choose to file the tax return using the draft provided by the Administration, but it is crucial to understand how this draft is generated. The Administration collects data from different sources (companies, banks, cadastre, etc.) to generate the draft automatically. It is important to keep in mind that the responsibility falls on the taxpayer if a draft with incorrect data is accepted. Therefore, it is essential to thoroughly review the data provided and correct any errors before confirming the return.

When reviewing the draft, make sure that your personal and family information is up to date and correct. Also check your entitlements to deductions and exemptions, paying special attention to areas such as maternity benefits, travel expenses, self-employed expenses and housing-related transactions.

Finally, make sure that the information is complete and review any pending compensation from previous years before finalizing the declaration process.

Other common errors in the income tax return:

Despite the attention paid to the details mentioned above, there are still common errors that can occur during the declaration process:

• Do not request the draft if you are not obliged to file a tax return: Even if your annual income is less than 22,000 euros from a single payer, it is important to request the draft to evaluate whether it is beneficial to file a tax return.
• Confirm the draft without review: Authorizing the draft without reviewing all the data can lead to incorrect conclusions and possible penalties. Pay special attention to personal and tax details, deductions and expenses before confirming the return.
• Not including certain income: It is crucial to remember that unemployment benefits are considered as a second payer. If your income exceeds €15,000 per year and you have two payers, you must file an income tax return.
• Failure to report changes in personal situation: Changes such as marriages or divorces must be reported on the income tax return. If the draft does not reflect these changes, it is your responsibility to include them.
• Errors in maternity deductions: Be sure to correctly include maternity deductions if applicable. Mothers with children under the age of three are entitled to reductions, and it is essential to take advantage of these benefits correctly.

In conclusion, avoiding these common mistakes will guarantee a smooth and accurate return, ensuring that you take advantage of all available deduction opportunities. Remember, if in doubt, you can always seek professional advice to ensure the accuracy of your tax return.

Entre Trámites has specialists who can help you manage your income tax return, from start to finish. Learn more about their plans here and choose the one that best suits your situation, or write to partners@entretramites.com for more information.