Example 4. Marriage with common children residing in the Autonomous Community of the Balearic Islands
The couple composed of Mr. RSC and Mrs. 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. Individual taxation of CSR gift:
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 (CSR Don 33%) | 3,000 |
Allowance for disability |
Taxpayer (CSR Don 33%) (1) | 3,300 |
Minimum personal and family total |
14,250 | Minimum personal and family total | 15,420 |
2. Individual taxation of Mrs. RRT:
State minimum |
Autonomous minimum | ||||
---|---|---|---|---|---|
Taxpayer tax-free threshold |
5,550 |
Taxpayer tax-free threshold |
5,550 | ||
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 (2) |
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 (CSR Don 33%) | 3,000 | Allowance for disability | Taxpayer (CSR Don 33%) | 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 taxpayer) (Return son) (Return disability)
(2) The minimum taxpayer of article 57 of the Personal Income Tax Law is in any case 5,550 euros per year (state minimum) and 7,370 (autonomous minimum for residents of the Balearic Islands over 65 years of age) with regardless of the number of members of 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 . (Return state minimum) (Return regional minimum)