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A civil servant inquired about how to declare overtime back pay from 2018, 2019, and 2020 that was received in 2021 for Income Tax (IRPF) purposes. The Directorate General of Taxes (DGT) ruled that these amounts must be attributed to the years in which the overtime was actually worked via supplementary tax returns.
Taxpayers receiving back pay for previous years must correct their past tax filings rather than declaring the full amount in the current year.
The tax team reviews your specific situation.
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