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6 types of income to report to the IRS

Find out what types of income to discriminate in your IRS declaration, especially because they dictate the completion of Model 3 and its respective annexes.


Category A
Category A earnings relate to earnings from dependent work. In other words, the taxation in this category refers to the remuneration arising from work for others, such as salaries, bonuses, commissions, subsidies or bonuses, indemnities, pre-retirement or pre-retirements, among others.

This type of income can result from an employment contract or legally equivalent contracts, which must be declared in annex A of the IRS.

Category B
This category includes business and professional income. As such, agricultural, commercial, industrial, livestock or forestry activities are included in category B income, as well as self-employed activities, independent workers (green receipts).

This type of income must be declared in Appendix B (for those who choose the simplified regime, as is the case for those who pass isolated acts) or in Appendix C (for professional and business income under organized accounting).

Category E
This category includes income from capital, including interest on demand or time deposits and dividends, which are declared in annex E of the IRS.

According to Portuguese legislation (art. 5 of the CIRS), “income from capital is considered to be the fruits and other economic advantages, whatever their nature or denomination, whether pecuniary or in kind, coming, directly or indirectly, from assets, assets, rights or legal situations, of a movable nature, as well as the respective modification, transfer or termination, with the exception of gains and other income taxed in other categories ”.

Category F
Category F income relates to property income. Therefore, they are the types of income resulting from “rents from rustic, urban or mixed buildings, paid or made available to the respective owners”.

This category also includes income from the operation of local accommodation, provided that it is not affected by a business activity, and must be declared in Annex F of the IRS.

Category G
This includes equity increases that are not considered in the other income categories. They are: indemnities “which aim to repair unproven emerging damages and loss of profits” and which “aim to repair non-equity damages, except those fixed by judicial or arbitration decision”, as well as capital gains resulting from the sale of shares or properties. These types of income must be declared in annexes G and G1.

Category H
It concerns pensions (for maintenance, old age, retirement or disability, as well as survivors as long as they are not considered dependent work) and temporary or lifetime income. This type of income must be declared in Annex A.

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  1. Boas informações! Obrigada Nostragest!