Guide to filing your income tax return in 2025

This year, the income tax return begins on April 2 and ends on June 30.

Table of contents

1. News and tax changes in income tax returns

2. Documentation and deadlines

3. Strategies to optimize your tax return and pay less taxes

4. Common mistakes and how to avoid them in your income tax return

5. Summary table

   
   

News and tax changes in the income tax return 2025

The 2025 income tax return brings with it a series of tax changes. Among the main novelties are the modifications in the brackets of the Personal Income Tax (IRPF) and the applicable deductions. and the applicable deductions. First, the personal income tax brackets have been adjusted to better reflect taxpayers' income. This implies that some individuals may find themselves in a different bracket than in the previous year, which affects the percentage of tax they must pay. For example, a student who has started working part-time or full-time may have their tax bracket altered, which is essential for planning purposes.

On the other hand, the 2025 campaign has introduced the method of payment through. Bizum. On this occasion, citizens have the possibility of pay their personal income tax return through the application. This option is in addition to traditional methods such as direct debit, direct debit, NRC (Complete Reference Number) or payment at a bank office.

Another of the modifications is found in the IRPF withholdings. Especially for workers with the Minimum Interprofessional Wage (SMI). With the increase of the SMI to 16,576 euros per year, and distributed in 14 payments (1,184 euros per month), the companies are in the situation of having to apply income tax withholdings income tax withholdings. From a statistical point of view, this is a change that will affect approximately 20% of the beneficiaries of the SMI, which means a reduction in the net amount received in each income.

Documentation and deadlines

For the year 2025, the income tax return also has essential aspects that are related to planning. For the new campaign, new dates have been new filing dates for filing the tax return have been set for the new campaign. This year the campaign takes place prematurely with respect to 2024. The deadlines, which start on April 2, are extended to June 30. extend until June 30 of the current year. This is a longer period than in past campaigns so that taxpayers have more time to start with the procedures. Timely filing not only avoids penalties, but may also allow taxpayers to receive refunds more quickly.

One of the main novelties in this year's campaign is the extension of the deadline for the preparation of the income tax return.

Essential documents include records of income, deductible expenses and relevant certificates. You must also submit a photocopy of the photocopy of the DNI of the other persons appearing on the tax return must also be submitted. This includes the spouse and children in the case of a family unit. On the other hand, it is essential to correctly provide the IBAN number of the bank account so that the amount can be refunded in case the tax return is returned. Finally, another of the basic documents is the cadastral reference of the house. It is a document necessary to identify the tax residence taxpayer's tax residence, regardless of whether it is a property owned or rented.

In another order of priority are the documents used for deductions. In this case, a distinction is made between mortgage contracts and rental contracts, which provide information and involve deductible expenses that are included in the income. On the other hand, there are the supporting documents for donations to non-profit organizations or contributions in the creation of companies. contributions in the creation of companies. With a view to this new campaign, the main recommendation is to keep all these documents together with the income tax return for a minimum of four years. All this so that the Tax Agency can check the validity of all the documents.

Strategies to optimize your tax return and pay less taxes

Optimizing your tax return means taking full advantage of available deductions and having a sound financial structure. solid financial structure to minimize the tax burden. These strategies differ depending on the type of person filing a tax return.

A common and effective strategy is to offset investment losses and optimize returns. If you have experienced losses on previous investments, these can be used to reduce taxable gains, thereby lowering the total amount of taxes payable. This strategy is especially relevant for those who have invested in the stock market, where fluctuations can be significant. In the case of rental housing, a 60% deduction applies for contracts signed before May 2023. A deduction that can be even more advantageous for contracts signed since 2024, reaching reductions of 90%.

Pension plans also offer a way to reduce your taxable income. By contributing to a pension plan, you are not only securing your financial future, but you are also reducing current taxable income, which can result in significant tax savings. significant tax savings. In addition, for the younger population, you can also consider opening specific savings accounts that offer tax benefits.

Other recommendations that can help optimize the income tax return are actions such as the declaration of income received by Bizum provided that they are more than 10,000 euros per year, declaring the sale of second-hand items on digital platforms or keeping invoices from the previous five years.

Common mistakes and how to avoid them in tax returns

Some of the most common failures include the omission of income or deductions, which may result in penalties by the IRS. It is essential to carefully review all documents and ensure that all information is complete and correct before submitting the return.

It is important to correct possible errors in the income tax return before filing the final draft.

Late filing is another mistake that can result in fines and penalties. It is essential to to be aware deadlines and make sure to comply with them. To avoid this problem, it is recommended that you prepare your return in advance and use reminders reminders for important dates.

If a mistake is made, it is important to know how to rectify it. The Tax Agency offers options for correcting erroneous returnsand doing so quickly can avoid more serious consequences. Familiarity with the rectification process is a critical skill. In addition, maintaining open communication with the Agencia Tributaria can make it easier to resolve any problems that may arise.

 A guide to understanding the MS Academy income tax returns

The following is the official MS Academy book, which contains explanations, practical examples and advice on the main tax procedures to be carried out in the income tax return.

You can purchase our guide at the following link.

Summary table 

News and tax changes in income tax returns	-New payment methods -Personal income tax withholdings
Documentation and deadlines	-Term extension -Main documents
Strategies to optimize your tax return and pay less taxes	-Reduction of the tax burden -Main recommendations
Common mistakes and how to avoid them in tax returns	-Respecting submission deadlines -Other common errors

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