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Deduction for maintenance payments and minimum per descendant

On 4th April began the Personal Income Tax Campaign. If for the last campaign disappeared the PADRE’s program to make way to the “Renta web”, the development for this year is a APP that the Tax Agency make available for the taxpayer. You can install it on any mobile device in order you can ask for your tax information and also submit the form. In addition to this new, the deadline to submit your Income Tax Form is on 2st July, although you should present the form before 27th of July if you want to domicile it on a bank account.

The Income Tax is a tax that affects more or less to every one. Although your are not obligated to submit the tax, but you surely know someone who each year has a harder time complying with their duty to file the tax due to the regulatory changes of Law 35/2006.

During the last exercise, and after the last reform of the Income Tax Law, there have been many clients with descendants with the same question What is the minimum per descendant? When do I have the right to apply it to me? And in the event that I pay a pension to my children, can I deduct it in the Income? Well, we are going to dedicate today’s article to solve these doubts.

What is the minimum per descendant?

As a general rule, we all have the right to apply the minimum taxpayer, this being 5.500€ per year, increasing by 1.150€ per year for people over 65 years and 1.400€ per year in case they are over 70 years.

We can say that in these amounts we pay less for our income from the General Tax Base.
In addition, those who have descendants in their charge, will have the additional right to the application of the minimum by descendants, if some requirements are met.

The amounts to be applied are between 2.400€ and 4.500€ per descendant, depending on the number of dependent children.

When do I have the right to apply it to me?

The taxpayers with the right to apply the minimum per descendants are those with children who meet the following requirements:

  • That the children are less than 25 years of age or with a disability, whatever your age.
  • Living with the taxpayer.
  • And that they do not have annual incomes over 8.000€ (excluding exempt ones).

So those legally separated parents who share custody of their children, provided that all requirements are met, both parents can apply the minimum for descendants, not exceeding the established amounts between the two.

And the pension in favor of the children, does it deduct?

Taxpayers who pay maintenance payments to their children by judicial decision may apply a reduction in their IRPF Declaration based on the amount paid, provided that they do not have the right to apply the minimum for descendants. This reduction is applied separating the tax base in two parts depending on the amount of the annuity, thus reducing the progressivity of the tax.

The last point is important, because this requirement must be med from the reform of Law 35/2006 that came into force in 2015, from which is incompatible the application of the reduction to satisfy annuities for maintenance in favor of children if you have right to the application of the minimum by descendants.

At GM Tax we are specialists in the taxation of personal income tax, therefore, we will be happy to answer your questions about it.

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