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Practical manual for Income Tax 2020.

Example 2. Deduction for dependent disabled ascendants without advance payment or transfer of rights

Mr. GVV, 77 years old, with a 45% disability, receives a retirement pension of 6,500 euros per year and does not file a IRPF return. She has 2 children with whom she lives throughout the year (6 months with each one). The first of them, Mr. PVP, worked as an employee from January to October 2020 with Social Security contributions of 1,400 euros. The second, Mr. LVP, also worked as an employee from January to May 2020, meeting the minimum registration period requirement and contributing 50 euros each month, and from June to December 2020 he has been receiving unemployment benefits. The differential rate IRPF in 2020 has been for each of the brothers -1,100 euros for Mr. PVP and 250 for Mr. LVP

Determine for each taxpayer the amount of the deduction for dependent ascendants with disabilities corresponding to the 2020 fiscal year and the result of their declaration, taking into account that neither requested advance payment of the deduction nor transferred their right to the other.

Solution:

A) Taxpayer Mr. PVP

Differential fee: -1.100

Deduction for dependent disabled ascendant (1):

Number of months of compliance with requirements: 10 months

  • Deduction amount: -500
  • Deduction limit (500 euros)

Advance payment : 0

Result of declaration (1,100 + 500) = -1,600 (to be returned)

B) Taxpayer Mr. LVP

Differential rate : + 250,00

Deduction for dependent disabled ascendant

Number of months of compliance with requirements: 12 months

  • Deduction amount = - 600
  • Deduction limit = 600 (all requirements are met throughout the year)) (2)

Advance payment: 0

Result of declaration (250 - 600) = -350 (to be returned)

Notes to example :

(1) Since both siblings are entitled to the deduction, the amount of this will be prorated between them in equal parts (the ascendant lives with each one for 6 months). The resulting amount (1,200 / 2 = 600 euros) is applied for each taxpayer entitled to the deduction proportionally to the number of months in which the requirements for applying it are met simultaneously (in this case, the requirements for registration in the corresponding Social Security regime and the right to the minimum for 10 months are met).

Therefore, 600 ÷ 12 months x 10 months = 500 euros correspond to the taxpayer's deduction and this amount prevails since the amount of contributions and fees accrued to Social Security is higher (1,400 euros). Back

(2) The taxpayer is entitled to half of the deduction (600 euros). This amount must be applied proportionally to the number of months in which the requirements are met simultaneously. In this case, he complies throughout the year because he was registered with social security for 5 months and received unemployment benefits for the rest . The monthly amount of this deduction will therefore be 50 euros (600 ÷ 12).

It should be noted that the figure of 250 euros of the total amount of said deduction (50 x 5 months in which you have been working), has as a limit the amount of contributions and fees accrued to Social Security (50 x 5 = 250 euros). Since this limit is not exceeded in this case, the taxpayer will be able to deduct the entire 250 euros. Regarding the remaining 350 euros of said deduction (50 x 7 months receiving unemployment benefit), the taxpayer may also deduct said amount in its entirety, since, with respect to unemployment benefits received, said limit will not apply to them.

Therefore, the amount of the deduction will be: 250 euros for the months that he was registered with social security (he does not exceed the limit of contributions to social security) + 350 euros (for the months in which he received unemployment benefits without limit, with respect to contributions to social security) = 600 Back