Government expands IRS tax deductions for domestic work

Thursday, 2 April 2026AI summary
Government expands IRS tax deductions for domestic work
Photo: ECO

The government has issued a new ordinance updating the rules for Annex H of the personal income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) return to include expenses related to domestic work. Although this tax benefit was legally established last year, previous regulations failed to cover it. The update corrects this administrative oversight, allowing taxpayers to claim these deductions in their current filings.

Context & Explainers

The IRS withholding tables are government-published schedules used by employers, pension payers and other payers to calculate how much personal income tax (personal income tax (Imposto sobre o Rendimento das Pessoas Singulares) — IRS) must be deducted from each pay period. They take into account gross pay, pay frequency, marital status and dependents; updates (usually published annually or when the budget changes) affect your monthly take-home pay and are reconciled with your annual tax return (Modelo 3).

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