Example 4. Marriage with common children residing in the Autonomous Community of the Balearic Islands

The couple made up of Mr. RSC and Mrs. RRT, aged 66 and 56, respectively. Don RSC has a recognized disability level of 33%. The couple has four children. The oldest is 26 years old, the second 24 years old, the third 22 years old and the fourth 21 years old. None of the children has earned income, excluding exempt income, greater than 8,000 euros per year, nor has he filed a IRPF declaration.

Determine the amount of the personal and family minimum for both spouses under the individual tax regime and under the joint tax regime 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, the minimum for the third descendant and the fourth and successive descendants, and the minimum for disability.

1. Individual taxation of Mr. RSC:

State minimum			Regional minimum
Taxpayer tax-free threshold	General	5.550	Taxpayer tax-free threshold ⁽¹⁾	General	6.105
	Over 65 years old	1.150		Over 65 years old	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
	Son 2 (22 years old) (50% s/2,700)	1,350		Son 2 (22 years old) (50% s/2,700)	1,350
	Son 3 (21 years old) (50% s/4,000)	2,000		Son 3 (21 years old) (50% s/4,400) ⁽¹⁾	2,200
	Minimum total by descendants	4.550		Minimum total by descendants	4.750
Allowance for disability	Taxpayer (Don RSC 33%)	3,000	Allowance for disability	Taxpayer (Don RSC 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			Regional 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
	Son 2 (22 years old) (50% s/2,700)	1,350		Son 2 (22 years old) (50% s/2,700)	1,350
	Son 3 (21 years old) (50% s/4,000)	2,000		Son 3 (21 years old) (50% s/4,400)	2,200
	Minimum total by descendants	4.550		Minimum total by 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			Regional minimum:
Minimum of the taxpayer ⁽²⁾	General	5.550	Minimum of the taxpayer ⁽²⁾	General	6.105
	Over 65 years old	1.150		Over 65 years old	1.265
	Minimum total per taxpayer	6,700		Minimum total per taxpayer	7.370
Allowance for descendants	Child 1 (24 years old) (100% s/2,400)	2,400	Allowance for descendants	Child 1 (24 years old) (100% s/2,400)	2,400
	Son 2 (22 years old) (100% s/2,700)	2,700		Son 2 (22 years old) (100% s/2,700)	2,700
	Son 3 (21 years old) (100% s/4,000)	4.000		Son 3 (21 years old) (100% s/4,000)	4.400
	Minimum total by descendants	9.100		Minimum total by descendants	9.500
Allowance for disability	Taxpayer (Don RSC 33%)	3,000	Allowance for disability	Taxpayer (Don RSC 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 taxpayers 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 by 10% the amounts set out in articles 57, 58, 59 and 60 of the Personal Income Tax Law . ^{(Return Minimum contributor)} ^{(Return son)} ^{(Back disability)}

⁽²⁾The minimum for the taxpayer under article 57 of the Personal Income Tax Law is in any case 5,550 euros per year (state minimum) and 7,370 (regional minimum for residents of the Balearic Islands over 65 years of age) regardless of the number of members of the family unit. However, in the joint taxation of the family unit, the taxable 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 savings . ^{(Return to state minimum)} ^{(Return to regional minimum)}