Employees and pensioners who want to deduct to the IRS more than what is provided in the tax withholding tables for the months of September and October can do so by submitting a request to the company for this purpose.
This understanding is contained in the response of the Tax and Customs Authority (AT) to a request for binding information from a taxpayer who wanted to know if in the months of September and October it was possible for him to opt for a higher withholding rate than the one he corresponds according to the IRS tax tables, by submitting a declaration to the employer, duly completed and signed.
The IRS code includes a rule that allows a worker to tell the company or entity that pays his or her wages if you intend to opt for withholding at source at the rate immediately higher than that corresponding to your gross salary and taking into account your family profile (with or without dependents, married or living with someone who works or is unemployed).
A solution that allows, for example, to prevent tax payment situations after submitting the annual return for those who have other types of income or aspire to a larger refund.
This option may also be exercised in the months of September and October, when exceptionally reduced withholding tables are in force, the AT pointing out that in the specific case, “the taxpayer can opt for a higher withholding (than the full rate) than what he would have.” . Otherwise, the maximum limit will be determined in the table corresponding to your family situation.”
For these purposes, the AT is referred to as the one that must present a “declaration with this request to the entity paying the income”.
The response from the tax authorities points out, however, that the IRS Code also imposes ‘beacons’ on this option, reminding the taxpayer in question that it is only possible to change the value of the maximum marginal rate, “keeping the part to be deducted unchanged and the portion to be deducted by number of dependents, if applicable.”
That is, the The taxpayer may choose to deduct at the level of the rate immediately higher than that which would correspond to him.but the part to be deducted is that which is attributed to your “natural” withholding rate.
Exemplifying. A person, without dependents, with a gross salary of 1,950 euros will have a withholding rate of 3.75% this October (and in September it was the same), which can then be deducted 44.07 euros, paying a tax of 29.06 euros.
If you want to qualify for the maximum marginal rate of the next section, you will retain 8.0% (instead of 3.75%), but you will only be able to deduct 44.07 euros. In practice, this means that this salary of 1,950 euros will pay 111.93 euros in taxes.
The Government published new tax withholding tables to accommodate the effect of a series of changes to the IRS approved by parliament, namely the reduction of rates up to the sixth income bracket or the update of the specific deduction.
To compensate individuals for the additional tax withheld between January and August, Specific tables were created for the months of September and October, with lower rates. (even being 0% at the lowest income levels) and others that will be applied in November and December, resulting in a retention value also lower than that registered until August.
Source: Observadora
