Errors in the Income Tax return: Key tips and precautions

Each year, the income tax declaration season marks a crucial moment for taxpayers in Spain. However, the process can become complicated and prone to errors, especially when drafts are handled hastily. According to some reports, up to 70% of drafts contain errors in the income tax declaration. To avoid unnecessary complications, it is essential to understand the new features of the 2023-2024 tax year and carefully review some key aspects. Our partners at Entre Trámites share important steps to avoid common mistakes.

Key steps to avoid errors in your 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 their 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, land registry, etc.) to generate the draft automatically. It is important to note that the responsibility lies with 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 your personal and family information is up-to-date and correct. Also, verify your rights 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 the information is complete and review any outstanding compensation from previous exercises before finalizing the declaration process.

Other common mistakes 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:

• Not requesting the draft if you are not obliged to declare: Even if your annual income is less than 22,000 euros from a single payer, it is important to request the draft to assess whether it is beneficial to file the declaration.
• Confirming the draft without reviewing: Authorizing the draft without reviewing all the data can lead to incorrect conclusions and possible penalties. Pay special attention to personal details, taxes, deductions and expenses before confirming the declaration.
• Not including certain income: It is crucial to remember that unemployment benefits are considered a second payer. If your income exceeds 15,000 euros per year and you have two payers, you must file your income tax return.
• Not reporting 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: Make sure you correctly include maternity deductions if applicable. Mothers with children under three years of age are entitled to reductions, and it is essential to take advantage of these benefits correctly.

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

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