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Practical manual for Income Tax 2020.

Example 1. Deduction for dependent disabled descendants with advance payment

The couple formed by Mr. FGD, who receives a retirement pension from Social Security of 1,600 euros per month, and Mrs. TVJ live with their 35-year-old son who has been certified since 1992 as having a disability of 33% and who receives an exempt income.

Determine the amount of the deduction for dependent children with disabilities corresponding to the 2020 tax year, knowing that the differential rate for the joint declaration of the marriage amounts to 2,300 euros and that in July 2020 they collectively requested and received the advance payment of the deduction.

Solution:

Previous note: Mr. FGD meets the requirements to apply the deduction as a pensioner and entitled to the minimum for descendants in this case as it is a disabled child regardless of his age, who lives with the taxpayer and does not have an annual income, excluding exempt income, greater than 8,000 euros, nor does he file a return. For her part, Mrs. TVJ is not entitled to the deduction as she does not carry out any type of activity on her own or as an employee, nor does she receive benefits as a pensioner or unemployed person.

Differential fee: + 2,300.00

Deduction for dependent disabled descendant:

  • Number of months of compliance with requirements: 12 months
  • Deduction amount = - 1,200
  • Deduction limit per child (1,200 euros) (1)

Advance payment:

  • Number of months that you have received the advance payment: 6 months (2)
  • Amount of the advance payment of the deduction (6 months x 100 euros) = + 600

Difference (1,200 − 600) = - 600

Result of declaration (2,300 − 600): 1,700 (to be entered)

Notes to the example:

(1) Since this is a taxpayer who receives a Social Security pension, the limit on the amount of contributions and fees paid to Social Security and Mutual Societies, which is established for taxpayers who carry out an activity on their own or as an employee, does not apply to them.

The limit will be the annual amount of the deduction of 1,200 euros and as long as the required conditions have been met throughout the year, the full amount may be deducted. Back

(2) From July to December he has received the advance payment of 100 euros each month (600 euros) for 6 months. Back