How to use your N26 Account and Spaces to do your taxes

After the beginning of the year (after Carnival), many people stop and sit down to organize their finances. It is the time to analyze expenses and plan what lies ahead. And it is also the time for doing taxes. And doing it correctly can help a lot with your fincare.

In addition to keeping you up to date with your tax obligations (and getting rid of fines and penalties), the income tax declaration works as an organizational exercise. And if all goes well, it still earns extra money in the account.

So it's worth knowing everything you need about the topic. We help. Check it out.

Who needs to do their taxes

Lots of people, but not everyone. If you had total taxable income (such as salary) greater than R$ 28,559.70 or non-taxable income (such as unemployment insurance, jobs without an invoice issued, etc.) greater than R$ 40,000 last year, you must declare it.

You also have to declare if you sold an asset subject to payment of income tax (a property, for example), carried out operations on the stock exchange, had assets worth more than R$300,000 on December 31 of last year and works in the field and earned more than R$ 142,798.50.

What documents do you need (and how it helps with your financial planning)

Several. Exactly those really boring ones that you ignore throughout the year until you realize you need to get organized. The government asks for income information from the company you work for or worked for last year, from banks and financial institutions and all income received, in addition to personal documents (such as an electoral card). Both yours and those of your dependents.

Putting it all together is a great opportunity to get to know your own expenses and income better. By looking at these reports, extracts, notes and vouchers you realize you have too many accounts. And that you're spending your money on a lot of different things. This is the first step to understanding where you can save and which of these expenses you can prioritize. Self-knowledge is everything.

Also for this reason, the income tax return will help when making your financial planning for next year - or financial planning for next week if you want to start small. Based on the information gathered for the declaration, you can identify areas that need attention.

How to fill out the income tax declaration

After the documents, you will need to ensure that you have the necessary technology to make your declaration. Then just sit back and take it easy. So let's go by parts.

IRPF program and Meu Imposto de Renda app

You can enter the Federal Revenue website and download the IRPF program. It's worth seeing if it runs on your computer and testing the software before filling it out for real. If you already have it installed and you did your taxes last year with it, you can just import the program data. With that, it already opens with most of the forms and fields filled in - including the receipt number of the previous year's declaration, which is requested by the Receita Federal.

Another option is to do it online, by cell phone or tablet with the Meu Imposto de Renda app. Anyone with a Gov.br account can make a "pre-filled declaration", which uses data on income, deductions, assets, rights, debts and real encumbrances already known by the system. This information is fed directly into the program. It is worth checking everything, of course, making necessary changes, inclusions or exclusions when needed.

According to the Receita Federal, whoever opts for the pre-filled declaration option will have priority to receive the Income Tax refund (keep reading, we'll explain).

Informing personal data

Starting from the beginning, you start the declaration by filling in the program forms with your basic personal data. If you have dependents, you will have to put their data too, clicking on the "Dependants" tab.

Informing income

The next step is to report your income, whether taxable or not. Do you know all that information you collected from companies, banks, paying sources and financial institutions? So it needs to be declared here. If you don't do this, you are at risk - the Receita Federal check of who they think is evading taxes. This is the time to use earnings reports.

Here enters your N26 Account

All financial investments, current account balances and assets such as real estate and vehicles must be informed in the "Assets and Rights" form, with the respective values in reais at the end of the year before last and at the end of last year.

That is, in 2023, for example, the declaration will have the amounts on 12/31/2021 and 12/31/2022. Yields with the values on those dates. And so:

• Select asset group 06 – Cash and demand deposit;
• Choose code 99 – Other deposits;
• Inform the location 105 – Brazil;
• Insert the CNPJ of N26 SCD SA (which is in our Income Report);
• Put Payment Account in the Discrimination field;
• Declare your balance on 12/31/2021 and 12/31/2022, also based on the Report.

Here comes Spaces income

The 100% yield (or more if you have Modo N) in Spaces goes in a different part of the declaration. It's on the "Income Subject to Exclusive Taxation" form. The income of all spaces will appear added in the Income Report, to make it easier. Then just follow this:

• Enter code 06 – Income from financial investments;
• In type of beneficiary, put if you are the holder or dependent;
• Insert the CNPJ of N26 SCD SA (which is in the Income Report, it is worth remembering);
• Declare the net amount of income indicated in the Report.

Informing the miscellaneous payments

A very important part of the statement is to correctly inform the program what payments were made throughout the year. Here, health and education expenses are included, deductible expenses that can be proven. They all go to the “Payments made” sheet, with the CNPJ or CPF of the institution or professional paid.

Why is it important? Because it is here that the Receita Federal realizes that you have spent a lot and makes the calculation for the possible refund of the Income Tax (almost there, just below).

Is something missing?

Finally, check "Pendências" to see if you missed any information. Any sensitive data you forgot to fill in will be highlighted there.

What is IR restitution (and how to make it yield with Spaces)

When you make your declaration, Receita Federal uses this data to calculate how much you owe the country. But a good part of this tax has already been collected over the previous year, in discounts made on your salary, for example. Sometimes you've paid even more than you should. In such cases, you may receive an amount back in the form of an Income Tax refund.

Refunds are important for a very simple reason: it's money coming into the account. And that money, like any income, can be used to pay off debts, save for later, pay for a special purchase, make more money, etc. If you want to do all of this in one place, you can use Spaces.

Imagine using the money from the refund to reach the goal of a space. Or create another space just for that money, name it something you need to spend it on, create a space card and start using it until you run out. You are the boss.

In addition, those who use Modo N and leave the money yielding in Spaces have another advantage. The sooner your refund arrives, the sooner that money starts to pay off.

When does the income tax refund arrive?

Returns are made in batches. Generally, the amount of overpaid tax is returned to taxpayers in five monthly batches, starting in May. The idea is that all money is returned by December of the same year as the declaration.

The first of these lots benefits people who have priority, such as the elderly. Afterwards, the order of refund follows the order of delivery of the Income Tax declaration. That is, those who declared before receive before. Got it?

Anyway, on the Receitas Federal website you can check the schedule of refund batches.

Can I receive the refund in my N26 Account?

Yes! Until recently, payment of the refund was made exclusively by crediting a bank account or savings account owned by the beneficiary. It was only necessary to inform during the IR declaration.

Now, you can receive it via Pix. You also need to inform this at the right time of the statement, giving your CPF and key. So, you can receive the refund deposit both in your N26 Account and in your Pix key registered with us.

Another good news: according to the Federal Revenue, those who choose to receive via Pix will also have priority when receiving the refund. So let’s do it.