Tax Refund Guide: How to Calculate and Receive Yours

Tax refunds represent one of the most anticipated moments for Brazilian taxpayers. When you declare your income and deductions to the Federal Revenue Service, you may have paid more tax than you should have throughout the previous year. In this case, the government returns the difference through a refund. Understanding how this process works, when you’re entitled to it, and how to calculate the amount is essential for organizing your personal finances.

What is an income tax refund

An income tax refund is the amount that the Federal Revenue Service returns to taxpayers when they have paid more tax than they should have during the calendar year. This situation occurs mainly because withholding tax on salaries, pensions, and other income follows a standard table, without considering each person’s specific deductions.

During 2023, for example, your employer withheld tax based only on your salary bracket, applying rates of 7.5%, 15%, 22.5%, or 27.5% according to your monthly income. However, in your annual return, you can deduct expenses for education, health, dependents, private pension, and other legally provided expenses, reducing your tax base and consequently the tax owed.

Who is entitled to a refund

The following taxpayers are entitled to a 2024 tax refund:

• Had tax withheld at source on employment income, pensions, or retirement benefits
• Made monthly or quarterly advance payments exceeding the tax owed
• Had tax withheld on financial investments, such as CDB, LCI, or investment funds
• Chose to include dependents or make legal deductions that reduce tax payable

For example, a professional earning R$ 6,000.00 monthly will have R$ 840.00 withheld monthly at source (22.5% rate on R$ 4,280.52). Throughout the year, they’ll pay R$ 10,080.00 in tax. If their annual deductions total R$ 15,000.00, the tax owed may drop to R$ 8,500.00, generating a refund of R$ 1,580.00.

Difference between refund and tax payable

It’s important to distinguish these two situations:

Refund: When tax paid in advance (withheld at source or by advance payment) exceeds the amount owed on the annual return. The taxpayer receives the difference back.

Tax payable: When the tax owed on the return is greater than the amount already collected during the year. In this case, the taxpayer must pay the difference by the deadline, with the possibility of installment payments in up to 8 parts.

How to calculate your refund

To calculate your refund, you need to compare the tax owed (after applying all deductions) with the amount already collected during the year. The IRPF (income tax) calculator can help with this process, simulating different deduction scenarios.

The basic calculation follows this formula: Refund = Tax withheld at source - Tax owed on return

Here’s a practical example:

• Taxable income in 2023: R$ 84,000.00
• Tax withheld at source: R$ 12,600.00
• Deductions (dependents, health, education): R$ 18,000.00
• Tax base: R$ 84,000.00 - R$ 18,000.00 = R$ 66,000.00
• Tax owed: R$ 10,432.53
• Refund: R$ 12,600.00 - R$ 10,432.53 = R$ 2,167.47

Deductions that increase your refund

The main deductions that can increase your refund are:

INSS (social security) contributions: Full deduction of mandatory Social Security contributions, limited to R$ 7,507.49 in 2023.

Dependents: R$ 2,275.08 per dependent in 2023. Includes children up to 21 years old (or 24 if university students), spouse without own income, parents over 65 without income, among others.

Alimony: Amounts paid in compliance with court decisions can be fully deducted.

Private pension contributions: Up to 12% of annual gross income in PGBL plans.

Dependents and refunds

Each dependent generates a deduction of R$ 2,275.08 annually on the 2024 return (calendar year 2023). For a family with two children, this represents R$ 4,550.16 in deductions, potentially generating savings of up to R$ 1,251.29 in tax owed (considering the maximum rate of 27.5%).

Important: dependents’ income must also be included in your return, which may reduce the benefit if the dependent has significant own income.

Medical and educational expenses

Medical expenses: No limit for deduction of health expenses for yourself, dependents, and alimony recipients. Includes consultations, exams, hospitalizations, health plans, and prescribed medications.

Educational expenses: Limited to R$ 3,561.50 per person in 2023 (taxpayer and each dependent). Covers from early childhood education to graduate programs at institutions recognized by the Ministry of Education.

2024 Payment schedule

The Federal Revenue Service releases refunds in five batches during the year, following a specific priority order. For 2024, the expected schedule is:

• 1st batch: May 31
• 2nd batch: June 28
• 3rd batch: July 31
• 4th batch: August 30
• 5th batch: September 30

Batch priority order

Refund payment order follows specific criteria:

First priority: Seniors over 80, taxpayers between 60 and 79, people with physical or mental disabilities or serious illness, and teachers.

Second priority: Taxpayers who used the pre-filled return or chose PIX as their payment method.

Other cases: Chronological order of return filing. The sooner you submit your error-free return, the sooner you’ll receive your refund.

Important dates to remember

• Final filing deadline: May 31, 2024
• Statement consultation: Available after return processing
• Pending issue correction: Until the respective batch due date
• Withdrawal deadline: 1 year after availability (unclaimed amounts return to Revenue Service)

How to check your refund

CPF consultation on Federal Revenue Service

The consultation can be made on the Federal Revenue Service official website through these steps:

1. Access gov.br/receitafederal
2. Click “Meu Imposto de Renda” (My Income Tax)
3. Log in with your gov.br account
4. Select “Consultar Restituição” (Check Refund)
5. Enter your CPF, birth date, and return year

The system will show if you’re entitled to a refund, which batch it will be paid in, and the amount adjusted by the Selic rate.

Federal Revenue Service app

The “Pessoa Física” (Individual) app offers the same website features, allowing:

• Consultation of pending refunds
• Return processing tracking
• Verification of pending issues or errors
• Return statement consultation

What to do if you don’t receive it

Return problems

If your refund wasn’t released within the expected timeframe, the most common reasons are:

Return under audit: When there are inconsistencies in reported data, such as discrepancies between declared income and third-party information (employers, banks, health plans).

Incorrect bank data: Non-existent, closed account, or account with different ownership than the return’s CPF.

Irregular CPF: Pending tax situation with the Federal Revenue Service.

Duplicate dependent: Same dependent declared by more than one taxpayer.

How to resolve pending issues

To solve problems preventing payment:

1. Check the processing statement on e-CAC or Revenue Service app
2. Identify pending issues listed in the document
3. Submit amended return correcting found errors
4. Attach supporting documents when requested
5. Track reprocessing through official channels

The correction deadline varies by type of pending issue, but generally you have up to 30 days after notification to resolve the situation.

Frequently Asked Questions

What’s the deadline to receive the 2024 tax refund?

Refunds are paid in five batches, from May to September 2024. The first batch includes seniors, disabled individuals, and teachers, while others follow priority order and return filing date.

How do I know if I’m entitled to a refund?

You’re entitled when tax withheld at source during the year exceeded the tax owed on your annual return. This mainly happens when you have significant deductions for dependents, health, education, or private pension.

Can I choose to receive via PIX?

Yes, since 2021 it’s possible to opt for PIX as payment method. This option gives priority in payment, placing the taxpayer ahead of those who chose traditional bank accounts.

What happens if I don’t withdraw the refund within 1 year?

Unclaimed amounts within 1 year return to public coffers. To recover after this period, you must make a specific request in e-CAC, which may take several months to process.

Does the refund receive monetary correction?

Yes, amounts are corrected monthly by the accumulated Selic rate from January of the year following the return until the month before payment. In 2024, this correction has been significant due to high Selic levels.

Can I anticipate refund receipt?

There’s no official way to anticipate receipt. Be wary of “refund anticipation” offers from banks or financial companies, as they usually involve high interest and may be forms of payroll loans.

How can I change bank details for payment?

If you haven’t filed your return yet, you can change details during completion. After submission, changes are only possible through an amended return, but this may delay processing and move your refund to later batches.