Vacations turning back to school and taxes

If you are or will be going on vacation, the last thing you want to think about is the next year’s IRS.    However, and given that this is a period in which there is more willingness to think long-term and rearrange plans and family routines, we believe it is an excellent time to launch some alerts:    Did you know that, from 2015, there is a new item in the deductions to the collection named "general expenses"?     The general expenses include all purchases/expenses with invoice issuance, as long as that they do not fit the costs indicated below:   •    Health expenses     •    Formation and education expenses •    Real Estate expenses (rental and interests) •    Child support expenses •    Elderly home expenses •    Retirement funds, PPR’s and similar constributions •    …   Realizing, from this year, you can deduct expenses of supermarket, catering, clothing/footwear, water, electricity, gas, fuel, hairdresser, repairs in motor vehicles, among others.    How much can your family  deduct?    You will be able to deduct up to 35% of the expenditure referred to up to a maximum of 250 € for each element of the household. In the case of a single-parent family the deduction increases to 45% up to a maximum of 335 €. It should be noted, however, that the dependents cannot deduct these general family expenses; only the taxable persons.   Changes in back to school Also from 2015, the item concerning education spending fails to include the diverse school supplies (notebooks, pencils, ...), which can be integrated only at the item "General Costs". Also excluded are all goods and services subject to the 23% tax rate.    Thus, there are considered as education expenses those relating to:    •    Purchase of books / textbooks;  •    Payment of tuition fees of kindergartens and schools;  •    Invoices issued by nannies, tutors, trainers and teachers – as long as they are properly registered in the corresponding activity sector   For each expense, an invoice  Always ask invoice with taxpayer number, preferably who is the beneficiary of the expenses (a child, for example). However, if in the moment of getting the bill you don’t remember your descendant’s taxpayer number, you can provide your own.    In the case of effecting expenditure of various kinds in the same location (e.g. at a grocery store you can purchase products that go into general, education and health expenses), ask for separate invoices, in order to obtain the corresponding deductions.    Periodically, go to the e-invoice system to verify if the invoices are set out in the profile of each of the elements of household and whether they are linked to the most appropriate category.    If you wish to require further clarification, please contact us: 227 537 270 ourinfo@domingossalvador.pt