What happens to my income tax return if I have two payers?

What happens to my income tax return if I have two payers?

Image result for income tax returnTell the urban legend that if in the same year you have two payers, that is, two different sources of income, Mr. Montoro appears in your dreams and forces you to pay a lot of taxes . But no, this is not the case and we will explain why.

Two payers is not always synonymous to pay more to the Treasury

The first thing you must understand is what it means to have two payers. If we work for someone else, that is, for a company that is not our property, this company would be our payer. But it may happen that either on a regular basis or on a regular basis we carry out work for a second company, which would become our second payer. We would then have two payers.

A lot of people are terrified of this situation and end up giving up that second source of income for fear of being penalized fiscally in the income statement. However, the reality is that when paying IRPF it does not matter how many payers you have, but how much your income goes up .

In other words, the income statement is made based on what the total income you have generated from January 1 to December 31, regardless of whether they come from a single payer, two payers or ten.

That is, if in one year you have won 12,000 euros, it does not matter if this money comes from a single payer that paid you 1,000 euros per month or from two payers who paid you each 500 euros per month. What matters to the Treasury is the final amount, that is, 12,000 euros, and it is on this figure that the percentage of IRPF that you must pay is calculated.

The important thing is not the number of payers, but the amount you have earned

It is important to bear in mind that the limit set for being obliged to make the declaration of income is 22,000 euros gross per year . If you do not exceed this amount, you do not have to make the statement. This is an advantage, because if the statement goes out to pay, you do not have to present it. However, when you have more than one payer, the limit is reduced to 12,000 gross euros per year.

Perhaps the most controversial aspect of having more than one payer is that it is more complicated for them to get the retention they should apply . For example, if in our regular work we earn 25,000 euros per year, our company calculates the retention corresponding to this figure. If we also earn another 20,000 euros working for a second company, this will retain the percentage corresponding to that amount.

Image result for income tax returnThe problem is that none of the companies is taking into account the income we receive from the other. The reality is that the annual income is 45,000 euros, and it is on that figure and not on the previous ones on which the withholding would have to be calculated.

As a consequence of this, when making the income statement, it is most likely that it will be “paid”. And this is because the monthly retention has been lower than the one that really corresponded. The solution is to communicate to both companies the income that you receive from the other so that they can calculate the correct retention. Another possibility is that you yourself use an income tax simulator to calculate the tax rate that corresponds to you and then ask your payers to apply it to you.

Whatever your case may be, what you have to be clear about is that you do not have to pay tax penalties, but that increasing your gross income also increases the amount of taxes you have to pay. Therefore, if you have the possibility of obtaining extra income, do not be afraid. The greater your income, the better for you (and for the Treasury).