[ad_1]
Although nothing changes in the 2021 IRS brackets and rates, some dependent workers will deduct less tax each month next year, because the withholding tables have been adjusted by the government to reduce the gap between the amount advanced to the state monthly and the tax. actually payable (calculated taking into account annual income).
Not all taxpayers will feel differences, initially, some pensioners, in which the adjustments only reflect the extraordinary increase in the lowest pensions as of January (the executive had already said that, here, there were no significant changes due to the greater correspondence between tables and final tax).
But among workers, the changes will bring, for most, an increase in monthly disposable income (comparing identical wage situations from 2020 to 2021). For single or married taxpayers, the Government wanted to blur that differential where it is greatest.
Those who are already exempt from IRS withholding will continue to be, no matter, but for many other taxpayers there will be a monthly decrease, although, in the end, the final tax to pay in relation to the income of 2021 is identical to that of 2020. in the seven parentheses they are the same and those are the ones that count to calculate the effective tax.
In the case of withholdings, globally the rates were “reduced by approximately 2%” for dependent workers, concludes the PwC consultancy based on the simulations.
The adjustment, explains Ana Duarte, from the consulting firm’s tax team, “will generate an increase in the net disposable income of taxpayers”, in a dimension that “will fundamentally depend on the level of gross income of each taxpayer, increasing between 0% and two % “.
In the lowest incomes, up to approximately 700 euros, the reduction is more significant, being lowered by 5% “in the case of married taxpayers [que são] two holders with gross income of up to 718 euros ”, summarizes Ana Duarte.
Exemption up to 686 euros
Taxpayers who earn up to 686 euros gross per month will not deduct the IRS monthly, because the Government has defined that there are only withholdings above this level. This year, the IRS monthly exemption was guaranteed up to 659 euros, slightly above the current minimum wage, although in practice, a specific rule in the tax code already exempted wage withholdings up to 686 euros.
Who earns 650 euros gross per month, for example, Currently he takes home 578.5 euros net (pays 71.5 euros of social contribution). As for the IRS, it was already covered by the exemption (the so-called “minimum existence”) and, since nothing changes in 2021, the net salary will be the same.
Let us now consider the case of a worker with a gross salary of 700 euros, assuming that he is a single person with no children.
The taxpayer will be subject to a monthly withholding rate of 4% in 2021 (deducting 29 euros per month from the IRS), instead of 4.2% this year (28 euros). With the contribution to Social Security and the IRS, the net salary will be 595 euros, instead of 594 euros. Both in this case and in the case of other single taxpayers without children with an income of up to 800 euros per month, the increase in the net monthly remuneration will be one euro, concludes the PwC team.
For those between 800 euros and 1,000 euros, for example, the IRS to pay monthly will lower two euros (looking, once again, at a single taxpayer without children). Decrease three euros for a salary of 1,100 euros, or four euros for salaries of 1,200, 1,300 or 1,400 euros.
As the withholding tables define the amount to be delivered to the tax authorities in a typical way, the difference applies to these specific cases, because the Finance grids define the rates according to standard criteria that take into account whether a taxpayer is a pensioner or an employee. , if you are married or single, if you have one, two, three or more children, if only one of the members of the couple works or if both obtain income from dependent work.
If you are a married worker (with a person who also earns income) and with a child, for example, earn 1100 euros gross, you will have an increase of two euros in net income. Now he receives 853 euros in his account, instead of 851 this year.
In the same salary situation, but for a married worker with two children (living with a person with an income), the decrease is identical, of two euros. However, as the retention rates are different for the number of children, the net income will be 862 euros, instead of the current 860.
“For income levels of approximately 3400 euros per month, in the case of single and married taxpayers [em que os dois são titulares de rendimento]Without dependents, the increase in monthly net income will reach 20 euros per month ”, exemplifies Ana Duarte.
The new tables also already warn that the minimum wage will increase in 2021, because the level from which there are withholdings at the source is above the monthly amount that must be defined for the minimum wage.
The IRS is calculated according to earned income for the entire year, so when the tax authority makes the final settlement after the filing of income statements in 2022 (for 2021), it will take into account, to do this adjustment, how much the taxpayer has already advanced through the monthly withholding.
