The expectation is that the IRS refund will be lower this year for most taxpayers,, but there is a detail that could be a pleasant surprise for pensioners.
The issue in question is the approval last year of a new mechanism for updating the specific deduction, allowing pensioners, as well as employees, to deduct 4,350.24 euros from the tax to be settled in 2025.
According to statements made to CNN by tax expert Jaime Esteves, “the deduction increases a little”.
In statements to the same channel, tax expert Rogério Fernandes Ferreira added that “for pensioners, the news is positive,” since the “maximum amount of specific deduction applied to income of category H (pensioners) increases”.
“Being 8.54 times the value of the IAS (Social Support Index) – which increased from €509.26 in 2024 to €522.50 in 2025 – the value of the deduction can reach €4,462.15 compared to €4,350.24 in the previous year, representing an increase of €111.91″, he clarified.
Soraia Leite, spokesperson for DECO PROTeste, also mentioned to CNN Portugal that pensioners should pay special attention to this IRS declaration, as it is anticipated that the refund will be smaller.
It is important to consider that “the amount currently being used as a discount at source is increasingly close to the actual tax amount to be paid,” as withholding tables have been adjusted. Soraia Leite concludes, therefore, that “when reconciling the IRS submission, there may be a decrease in the amount to be received or an increase in the amount to be paid.”
