Furloughed workers may need to complete 2020 tax return

by Deborah Cater
Tax return 2020 - check if you need to complete one
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MADRID – Tax office staff warn furloughed workers they may need to complete a tax return for 2020

Ordinarily, ERTE payments don’t have tax deducted at source. As a result, many people may not realise they need to pay some money back to the taxman after completing their IRPF income-tax declaration.

Check if you need to complete a tax return for 2020

Government tax inspector representatives warn people who have benefited from ERTE payments in the last 12 months to check if they need to fill out a tax return for 2020.

In normal circumstances, anyone earning under €22,000 a year from a single source, doesn’t have to complete a separate declaration.

However, many people received furlough money from the SEPE employment service as well as from an employer in 2020. This means they will need to file an individual tax return under the rules.

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ERTE not taxed at source

The Gestha union of Hacienda employees explained, those who earned €14,000 to €22,000 in 2020 need to fill in a declaration if they received more than €1,500 from SEPE in 2020.

Only those who earned less than €14,000, including from SEPE, are exempt.

Annual tax return

The tax office is preparing for the annual tax return period, and the union Gestha is keen to make the the public aware and ready.

Gestha also warned those receiving ERTE in 2020 who were used receiving tax refunds in previous years, due to reasons such as number of children, should expect to get little refunded this year.

They also recommend workers check their declaration draft in case they received extra furlough money which they need to pay back.

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