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Practical Income Manual 2020.

By birth or adoption of children

Regulations: Articles 4 and 18.1 Text Recast of the legal provisions of the Community of Madrid regarding taxes transferred by the State, approved by Legislative Decree 1/2010, of October 21.

Deduction amounts and application periods

  • 600 euros for each child born or adopted
  • The deduction applies both in the tax period in which the birth or adoption occurs and in each of the two following tax periods.
  • In the case of multiple births or adoptions, the amount corresponding to the first tax period in which the deduction is applied will increase by 600 euros for each child .

Important: in accordance with the fifth Final Provision of the Consolidated Text of the legal provisions of the Community of Madrid regarding taxes transferred by the State, the deduction for birth or adoption of children of article 4 of the Consolidated Text of the Legal Provisions of the Community of Madrid regarding taxes transferred by the State, in the regulation in force since January 1, 2018, only It will be applicable to children born or adopted after said date .

Requirements and other conditions for the application of the deduction

  • Only parents who live with their born or adopted children will have the right to make the deduction.
  • When the children born or adopted live with both parents and they pay taxes individually, the amount of the deduction will be prorated in equal parts in the declaration from each of them.
  • Limits of the sum of the general and savings tax bases (sum of boxes [0435] and [0460] of the declaration) in order to apply the deduction. A double limit is required; one general one, which must be fulfilled by the taxpayer who intends to apply the deduction, and another specific one that must be fulfilled by the family unit of which it is a part:

    a. Taxpayer: The sum of the general tax bases and the taxpayer's savings may not exceed:

    • 30,000 euros in individual taxation .
    • 36,200 euros in joint taxation .

    b. Family unit: The sum of the general tax bases and savings of all members of the family unit of which the taxpayer may be a part may not exceed 60,000 euros.

    Rules for its application:

    • If it is a conjugal family unit (those regulated in article 82.1.1 of the Personal Income Tax Law ), the tax bases of each of the members of the unit must be added. family members integrated into it, regardless of whether or not they opt for the joint taxation regime and whether or not they are required to file a declaration.
    • Thus, for each spouse, the tax base will be that corresponding to both plus those of the children (minors or judicially incapacitated adults subject to extended or rehabilitated parental authority), common or not, who cohabit with the marriage.

      In the case of joint taxation, the tax base of said declaration will be taken into account for the purposes of the established limit.

    • If it is a single-parent or non-marital family unit, only the tax bases of the members of the family unit that theoretically correspond to each taxpayer must be added, in accordance with the provisions of article 82.1.2 of the Law of Personal Income Tax : the taxpayer himself and his children (minors or judicially incapacitated adults subject to extended or rehabilitated parental authority) who live with him. And all of this, too, regardless of whether or not they choose to pay taxes under the joint taxation regime and whether or not they are required to file a return. In the case of joint taxation, the tax base of said declaration will be taken into account for the purposes of the established limit.