IRS question

where are you from?

How can where I'm from be relevant?... Immigrants to Portugal are not taxed according to the country of origin, are they?

@ctomac,

If you are tax resident in Portugal, i.e, eg. you lived here for at least 183 days in 2022, you have to file an IRS tax declaration for 2022. Here you have to declare the income you earned not only in Portugal but outside Portugal as well.

In this link you have a set of FAQs that can help you (source: AT portuguese tax Authority), e.g. FAQs 06-3802, 07-3803, 09-3805, ... etc. Translation required:

https://info.portaldasfinancas.gov.pt/p … 00653.aspx

IRS tax declaration must be submitted from the 1st of April to the 30th of June.

@ctomac - I know that in the USA, we are required to file a tax return even if we have no income. So I would assume you must do the same there.  I have an accountant in PT who takes care of my taxes there, so as a matter of legalese, I would suggest you do the same. AND as a matter to mention, US citizens must also pay taxes in the USA on income earned world wide, in other words on my real estate investment in Portugal. But we are eligible for a foreign tax credit in the USA, so we are not taxed twice on the same income.

@JohnnyPT

The thing is I had no income in 2022. We are retired, no pension, no other income in 2022 anywhere in the world, we lived off our savings. So do we still have to submit a return? I tried to but I keep getting error messages on the Finanças website telling me that I have to attach at least one anexo, but all the anexos ask me about rendimento, which is zero, and apparently I cannot file a return showing zero income.

@janicecallant Thanks, but my question was about taxes in Portugal and not the US. But thanks for the input anyway.

For portuguese citizens these are the conditions for exemption from filing tax declaration:

https://www.montepio.org/ei/ultimas/imp … ste-dever/

Regarding non-national taxpayers it should be similar, but I am not sure...

When submitting IRS you should submit an annex. Have you no income interest on your savings ? That should be included in Annex E...

@ctomac - I know that in the USA, we are required to file a tax return even if we have no income.
-@janicecallant

Don't know where you come up with that, but that's not true at all.  Suggest you look it up and get informed further.

@JohnnyPT We didn't have any interest paid in our bank account, but it appears that there is a small amount of interest in our Interactive Brokers account. So thanks for mentioning that, otherwise I wouldn't have thought of checking.

There is something else I discovered while checking the IBKR brokerage account: there is a document in their Tax Documents section named FX Income Worksheet, a sample of which I attached below:

The Help page related to this document says among other things: "The US Internal Revenue Service (IRS) requires that forex income and loss be calculated based on First In, First Out (FIFO) matching. ....... etc etc etc"

So I am not sure if this FX Income Worksheet has any relevance in Portugal. Or is it just for the US citizens?

Does anybody have any info on this?...

Thanks again!

@ctomac same situation here, asked an accountant she said no need to file until next year because it is only income and savings does not count, but still looking for more info just in case

@elsaBABS I looked a bit more into this, and it appears that the IBKR Forex income file is actually related to capital gains resulting from various forex transactions, so I believe this income should be declared on the tax return this year since it was earned in 2022. Same for interest income for currencies held in the brokerage account.

Now that is not going to affect me in practical terms since I have NHR status, but a tax return should, I think, be filed with the Finanças this year.