Housing Credit: Discount on the IRS

It will be possible for families with a housing loan contract and with a salary of up to €2,700 to ask the employer to deduct a lower amount from the IRS every month.

According to the Consumer Protection Organization this measure is possible, so it has carried out a set of questions and answers for your assistance.

#1 Requirements for requesting a withholding tax reduction?
To be able to take advantage of this measure, which is optional, you must meet the following requirements:
Gross monthly income up to €2,700;
Housing Credit Agreement in force;
Contract/employee.
#2 Does the decrease in withholding require payment of IRS in the following year?
When discounting a smaller amount compared to the one you should pay, it can happen. This is because you may not have deducted enough to cover the tax and, in this sense, it will be necessary to pay the missing tax.

#3 How is the reckoning done?
"As usual, the delivery of the income tax return begins the process of settling accounts with the Finances. The Tax Authority calculates the tax payable by the taxpayer, taking into account the income calculated, deducting the respective tax deductions and withholding tax. at source already made through the employer. If you have paid more tax, there is a refund of IRS. If you have paid less tax, there is a charge for the missing IRS." - Consumer Protection Organization.

#4 Which housing credit agreements are eligible for this measure?
If you have a home loan agreement signed until December 31, 2011, you can take advantage of this measure.

#5 How to proceed with the order?
Gather documents that prove that you have an ongoing housing credit agreement with your employer.

#6 What is the calculation for reducing withholding tax?
"The employer applies to the worker the withholding tax immediately preceding the one that should be applied to him in the current table, continuing to respect the number of dependents and the number of contributors in the household who deduct." - Consumer Protection Organization.

#7 Will the repayment amount in the following year be lower?
"Yes. If you discount less, there is less money to be returned to the taxpayer. In fact, there may not even be money to be returned and before tax to be paid." - Consumer Protection Organization

Source: SUPERCASA and PIXEL