Example 2. De facto couple with common children residing in the Community of Galicia

Mr. AST and Mrs. MVV, live together without any marital bond and have three children in common who live with them and whose ages are 18, 12 and 6 years old, respectively. The youngest son has obtained 4,050 euros in capital gains from a securities portfolio donated by his maternal grandfather at birth. The remaining children have not obtained income in the year.

Determine the amount of the personal and family minimum for both taxpayers in the case of individual taxation and joint taxation for the purposes of calculating the state tax and the regional tax.

Solution:

Previous note: Since the Autonomous Community of Galicia has not exercised regulatory powers in regulating the amounts of the personal and family minimum, the amount of this determined in accordance with the provisions of the Personal Income Tax Law must be used to calculate both the state tax and the regional tax.

1. Individual taxation of the father (Mr. AST) and the mother (Mrs. MVV):

State minimum			Regional minimum
Taxpayer tax-free threshold	General	5.550	Taxpayer tax-free threshold	General	5.550
Taxpayer tax-free threshold	Minimum total per taxpayer	5.500	Taxpayer tax-free threshold	Minimum total per taxpayer	5.550
Allowance for descendants	Child 1 (18 years old) (50% s/2,400)	1,200	Allowance for descendants	Child 1 (18 years old) (50% s/2,400)	1,200
	Child 2 (12 years old) (50% s/2,700)	1,350		Child 2 (12 years old) (50% s/2,700)	1,350
	Son 3 (6 years old)⁽¹⁾	0		Son 3 (6 years old) ⁽¹⁾	0
	Minimum total by descendants	2.550		Minimum total by descendants	2.550
Minimum personal and family total		8.100	Minimum personal and family total		8.100

2. Joint income tax return of the father or mother with minor children: ⁽²⁾

State minimum			Regional minimum
Taxpayer tax-free threshold	General	5.550	Taxpayer tax-free threshold	General	5.550
Taxpayer tax-free threshold	Minimum total per taxpayer	5.550	Taxpayer tax-free threshold	Minimum total per taxpayer	5.550
Allowance for descendants	Child 1 (18 years old) (50% s/2,400)	1,200	Allowance for descendants	Child 1 (18 years old) (50% s/2,400)	1,200
	Child 2 (12 years old) (50% s/2,700)	1,350		Child 2 (12 years old) (50% s/2,700)	1,350
	Son 3 (6 years old)	4.000		Son 3 (6 years old)	4.000
	Minimum total by descendants	6.550		Minimum total by descendants	6.550
Minimum personal and family total		12.100	Minimum personal and family total		12.100

3. Individual taxation of the other parent: ⁽³⁾

State minimum			Regional minimum
Taxpayer tax-free threshold	General	5.550	Taxpayer tax-free threshold	General	5.550
Taxpayer tax-free threshold	Minimum total per taxpayer	5.500	Taxpayer tax-free threshold	Minimum total per taxpayer	5.550
Allowance for descendants	Child 1 (18 years old) (50% s/2,400)	1,200	Allowance for descendants	Child 1 (18 years old) (50% s/2,400)	1,200
	Child 2 (12 years old) (50% s/2,700)	1,350		Child 2 (12 years old) (50% s/2,700)	1,350
	Son 3 (6 years old)	0		Son 3 (6 years old)	0
	Minimum total by descendants	2.550		Minimum total by descendants	2.550
Minimum personal and family total		8.100	Minimum personal and family total		8.100

Notes to the example:

⁽¹⁾The minor child is required to file a IRPF return based on the income obtained in the year (income from movable capital subject to non-exempt withholding for an amount greater than 1,600 euros per year).

If the father and mother choose to pay taxes individually, the minor child must also file his or her own individual IRPF . Furthermore, by filing an individual IRPF declaration with income exceeding 1,800 euros, neither of your parents will be entitled to apply the minimum for descendants in their respective declarations.

It should be noted that in the individual declaration of the youngest child (child 3), the amount of 5,550 euros must appear as the taxpayer's minimum. ^{(Return to state minimum)} ^{(Return to regional minimum)}

⁽²⁾Since there is no marital bond between the parents, the family unit may be formed, at their choice, by the father or the mother with the two minor children (children 2 and 3), without it being possible, for tax purposes, for both parents with the aforementioned children to form a single family unit.

The minimum taxpayer tax applicable to joint taxation by a father or mother with minor children is the general amount of 5,550 euros per year.

Likewise, since the father and mother live with the children who are part of the family unit, the reduction of the taxable base of 2,150 euros per year referred to in article 84 of the Personal Income Tax Law is not applicable. See, in this regard, Chapter 13 above, which discusses the reductions in the general tax base and savings .

In the case of joint taxation of the father or mother with minor children (children 2 and 3), the minimum for descendants must be distributed equally between the parents with whom the descendants live and who do not have incomes exceeding 1,800 euros, even if one of them pays taxes jointly with the children. This is the reason why the minimum for descendants corresponding to the youngest child (child 3), with income exceeding 1,800 euros, corresponds entirely to the father or mother with whom he or she pays taxes jointly. Consequently, the other parent will not be entitled to apply the Minimum for descendants for said child.

The Minimum for descendants corresponding to child 1, who, being of legal age, is not part of the family unit, also corresponds to both parents in equal parts. ^(Back)

⁽³⁾The other parent in his/her individual declaration is only entitled to apply half of the minimum for descendants corresponding to the 1st child. and 2, since none of them have income greater than 1,800 euros. ^(Back)