Example 4. Marriage with common children residing in the Autonomous Community of the Balearic Islands

The couple composed of Don RSC and Dona RRT, 66 and 56 years old, respectively. Don RSC has a recognized disability level of 33 percent. Four children live with the couple. The oldest is 26 years old, the second is 24 years old, the third is 22 years old and the fourth is 21 years old. None of the children has obtained income, excluding exempt income, of more than 8,000 euros per year nor has they filed a tax return Personal Income Tax

Determine the amount of the Personal and Family Minimum of both spouses under the Individual Taxation regime and under Joint Taxation of the family unit for the purposes of calculating the state tax and the regional tax.

Solution:

Previous note:The Autonomous Community of the Balearic Islands has exercised regulatory powers in regulating the amounts of the personal and family Minimum, increasing by 10% the amounts corresponding to the Minimum for taxpayers over 65 years of age, Minimum for the third descendant and the fourth and the successive descendants and Minimum for disability.

1. Husband's individual taxation:

   State minimum			Autonomous minimum
   Taxpayer tax-free threshold	General	5,550	Taxpayer tax-free threshold(1)	General	6,105
   	More than 65 years	1,150		More than 65 years	1,265
   	Minimum total per taxpayer	6,700		Minimum total per taxpayer	7,370
   Allowance for descendants	Child 1 (24 years old) (50% s/2,400)	1,200	Allowance for descendants	Child 1 (24 years old) (50% s/2,400)	1,200
   	Child 2 (22 years old) (50% s/2,700)	1,350		Child 2 (22 years old) (50% s/2,700)	1,350
   	Child 3 (21 years old) (50% s/4,000)	2,000		Child 3 (21 years old) (50% s/4,000)(1)	2,200
   	Minimum total for descendants	4,550		Minimum total for descendants	4,750
   Allowance for disability	Taxpayer	3,000	Allowance for disability	Taxpayer(1)	3,300
   Minimum personal and family total		14,250	Minimum personal and family total		15,420

2. Individual taxation of women:

   State minimum			Autonomous minimum
   Taxpayer tax-free threshold		5,550	Taxpayer tax-free threshold		7,370
   Allowance for descendants	Child 1 (24 years old) (50% s/2,400)	1,200	Allowance for descendants	Child 1 (24 years old) (50% s/2,400)	1,200
   	Child 2 (22 years old) (50% s/2,700)	1,350		Child 2 (22 years old) (50% s/2,700)	1,350
   	Child 3 (21 years old) (50% s/4,000)	2,000		Child 3 (21 years old) (50% s/4,000)	2,200
   	Minimum total for descendants	4,550		Minimum total for descendants	4,750
   Minimum personal and family total		10,100	Minimum personal and family total		10,300

3. Joint taxation of the family unit:

   State minimum			Autonomous minimum:
   Minimum of the taxpayer(2)	General	5,550	Minimum of the taxpayer (1)	General	6,105
   	More than 65 years	1,150		More than 65 years	1,265
   	Minimum total per taxpayer	6,700		Minimum total per taxpayer	7,370
   Allowance for descendants	Child 1 (24 years old) (50% s/2,400)	2,400	Allowance for descendants	Child 1 (24 years old) (50% s/2,400)	2,400
   	Child 2 (22 years old) (50% s/2,700)	2,700		Child 2 (22 years old) (50% s/2,700)	2,700
   	Child 3 (21 years old) (50% s/4,000)	4,000		Child 3 (21 years old) (50% s/4,000)	4,400
   	Minimum total for descendants	9,100		Minimum total for descendants	9,500
   Allowance for disability	Taxpayer	3,000	Allowance for disability	Taxpayer	3,300
   Minimum personal and family total		18,800	Minimum personal and family total		20,170

Notes to the example:

⁽¹⁾In determining the increase in the minimum for a taxpayer over 65 years of age, the minimum for the third descendant and the minimum for disability, the amount approved by the Autonomous Community of the Balearic Islands has been applied, which increases the amounts set in the articles by 10%. 57, 58, 59 and 60 of the Personal Income Tax Law ^{(Back Minimum) (Return son) (Return disability) (Back joint)}

⁽²⁾The minimum taxpayer in article 57 of the Personal Income Tax Law is in all cases 5,550 euros per year regardless of the number of members in the family unit. However, in the joint taxation of the family unit the tax base can be reduced by 3,400 euros per year, prior to the legally established reductions. See, in this regard, Chapter 13 above, which discusses the reductions in the general tax base and of savings . ^(Back)