If you live in Portugal, it’s time to start thinking about filing your 2022 income tax return. Portugal’s Secretary of State for Tax Affairs, António Mendonça Mendes, estimates that the processing of IRS refunds in 2022 will begin in the first half of April, with taxpayers covered by the automatic IRS being among the first to be considered. This is good news for taxpayers in Portugal after delays in previous years due to the coronavirus pandemic.
“We will start processing refunds in the first half of April,” António Mendonça Mendes told Lusa about the launch of the new income tax campaign, which has already started and will run until June 30, 2022.
There is “no reason” for the Treasury Secretary not to return to pre-pandemic reimbursement deadlines this year. These are “deadlines that average around 17 days” after the declaration was submitted. This average is the result of an average processing time of 11 to 12 days for the automatic tax return and 19 to 20 days for the manual tax return.
“The first returns to be processed are processed a few days after the IRS return is submitted, and of course, the automatic IRS is faster to process as these are situations that have already been calculated by the tax authority in advance,” explains Mendonça Mendes.
- Mendonça Mendes highlighted the speed with which the Portuguese Tax Authority (AT) has handled the processing of IRS refunds in recent years but recalled that filing the 2022 tax return can take place over three months, so an “ Onslaught” was not necessary for the early days of the campaign.
Which forms do I need for the US tax return?
The IRS (Internal Revenue Service), which reports to the American Ministry of Finance, is responsible for processing the tax return. There you will not only receive the various forms for the tax return (such as Form 1040) but also all the necessary information on the American tax system (“How to file your federal income tax return”) and explanations of terms or special tax questions. There is also the option to fill out and send the income tax form online.
The Federation of Tax Administrators (FTA) provides direct links to state Treasury Department websites. It also contains information on current tax rates in the 50 states, such as property tax.
Income tax return filing deadlines in the United States
The income tax return for all US citizens and Green Card holders must be submitted electronically. Or by post by April 15 of the following year. Taxpayers who are outside of the United States at the time have two more months, until June 15. To file their tax returns. With Form 4868 you can get an automatic extension of 4-6 months. If the application is submitted on time. But there is no guarantee. So check here in good time whether the extension has been granted.
What tax credits are there in the US?
In principle, there is a tax liability in the USA. But there is a regulation that the income must exceed the general basic allowance. If this is not the case, you are partially exempt from tax liability. These allowances automatically adjust to the inflation rate every year. And age groups and marital status are also included in the calculation.
Tax liability after relinquishing US residency status
US citizens who give up their citizenship will still have to pay taxes on US income for an additional 10 years. Green card holders who return their permanent resident card may still be subject to tax.