Overpaid income tax: how to claim a refund, including on family law payments reported as taxable income?

Taxpayers must rectify their tax returns to file refund claims for overpayment

If it has come to your attention that you paid too much income tax due to a mistake when filling out your tax return, you can file a refund claim with the Federal Revenue Service.

Before you can do this, however, you need to make the necessary adjustments to your tax return. Once a rectification is made, you can request a refund or offsetting on account of overpayment.

Overpaid amounts related to past-due installments of the income tax and the legal charges collected on said amounts can be offset in future installments or be subject to a refund claim. Reimbursements will be adjusted to the Selic interest rate.

The process may take some time, depending on how the Federal Revenue Service assesses each case.

Refund claims for amounts overpaid or unduly paid must be filed within five years of the assessment period, after which point requests will not be accepted.

Refund of amounts received as family support

In 2022, the Brazilian Federal Supreme Court (STF) ruled that family law payments, including alimony and child support (jointly called “aliments” in Brazil) are no longer considered taxable.

Therefore, taxpayers who filed their tax returns in previous years including alimony as taxable income may apply for a refund of the deductions made on those amounts received as family support.

To reclaim said amounts, it is necessary to file an amended return for the assessment year in which the collection or deduction was unduly made. It is worth pointing out that it is possible to file refund claims for the last five years.

Once the amended return has been filed, if the refundable tax balance is greater than that which had been reported on the original return, the difference will be made available as a residual batch.

If the tax payable balance is lower than that on the original return, or if the amended return results in a rebate, the taxpayer can apply for a refund through an administrative process for the money overpaid.

Read more: Income Tax: Federal Revenue Service will refund amounts collected on family support

Overpaid monthly income tax payments: am I eligible for a refund?

In this situation, amounts overpaid or unduly paid can be offset in subsequent monthly installments of the income tax within the same calendar year, or even in the Annual Tax Return.

Tax assistance for individuals

You can count on the support of Domingues e Pinho Contadores' individual tax department for the preparation of tax returns and refund claims. Talk to our team at: dpc@dpc.com.br.