# Example 2. De facto couple with common children, residents in the Valencian Community

Don AST and Mrs. MVV, live together without marriage and have three children in common who live with them and whose ages are 18, 12 and 6 years, 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 during 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: The Valencian Community has exercised regulatory powers in regulating the amounts of the personal and family minimum, increasing the amounts of the personal and family minimums established in the Personal Income Tax Law .

1. Individual taxation of the father (don AST) and the mother (doña MVV):

State minimumAutonomous minimum
Taxpayer tax-free threshold General 5,550 Taxpayer tax-free threshold General 6,105
Minimum total per taxpayer 5,550 Minimum total per taxpayer 6,105
Allowance for descendants Child 1 (18 years old) (50% s/2,400) 1,200 Allowance for descendants Child 1 (18 years old) (50% s/2,640) 1,320
Child 2 (12 years old) (50% s/2,700) 1,350 Child 2 (12 years old) (50% s/2,970) 1,485
Child 3 (6 years old)(1) 0 Child 3 (6 years old)(1) 0
Minimum total for descendants 2,550 Minimum total for descendants 2,805
Minimum personal and family total 8,100  Minimum personal and family total 8,910

Note to example:

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

When the father and mother choose to pay taxes individually, the minor child must also file their own individual personal income tax return . Furthermore, when submitting an individual income tax return Personal Income Tax with income exceeding 1,800 euros, it will not entitle any of your parents to apply the minimum for descendants in their respective returns.

It should be noted that in the individual declaration of the youngest child (child 3), the amount of 5,550 euros (minimum of the state taxpayer) and 6,105 euros (minimum of the regional taxpayer) must appear as the taxpayer's minimum. (Return state minimum) (Return regional minimum)

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

State minimum

Autonomous minimum

Taxpayer tax-free threshold General 5,550 Taxpayer tax-free threshold General 6,105
Minimum total per taxpayer 5,550 Minimum total per taxpayer 6,105
Allowance for descendants Child 1 (18 years old) (50% s/2,400) 1,200 Allowance for descendants Child 1 (18 years old) (50% s/2,640) 1,320
Child 2 (12 years old) (50% s/2,700) 1,350 Child 2 (12 years old) (50% s/2,970) 1,485
Child 3 (6 years old) 4,000 Child 3 (6 years old)  4,400
Minimum total for descendants 6,550 Minimum total for descendants 7,205
Minimum personal and family total 12,100  Minimum personal and family total 13,310

Note to example:

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

The Minimum taxpayer applicable in the joint taxation of the father or mother with minor children is 5,550 euros per year (state minimum) and 6,105 euros (autonomous minimum for residents in the Valencian Community).

Likewise, when the father and mother live together with the children who are part of the family unit, the reduction in the tax base of 2,150 euros per year referred to in article 84 of the Personal Income Tax Law is not applicable. ##1##. See, in this regard, Chapter 13 above, which discusses the reductions in the general tax base and savings .

For its part, in the case of joint taxation of the father or mother with the minor children (children 2 and 3), the minimum for descendants must be distributed equally between the parents with whom the descendants who do not have higher incomes live. to 1,800 euros, even if one of them pays joint taxes with the children. This is the reason why the minimum for descendants corresponding to the youngest child (child 3), with income greater than 1,800 euros, corresponds entirely to the father or mother with whom they are taxed jointly. Consequently, the other parent will not have the right 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 shares. In this case, the amount approved by the Valencian Community is applied, which modifies the amount corresponding to the minimum for descendants. (Back)

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

State minimumAutonomous minimum
Taxpayer tax-free threshold General 5,550 Taxpayer tax-free threshold General 6,105
Minimum total per taxpayer 5,550 Minimum total per taxpayer 6,105
Allowance for descendants Child 1 (18 years old) (50% s/2,400) 1,200 Allowance for descendants Child 1 (18 years old) (50% s/2,640) 1,320
Child 2 (12 years old) (50% s/2,700) 1,350 Child 2 (12 years old) (50% s/2,970) 1,485
Child 3 (6 years old) 0 Child 3 (6 years old) 0
Minimum total for descendants 2,550 Minimum total for descendants 2,805
Minimum personal and family total 8,100 Minimum personal and family total 8,910

Note to example:

(3) The other parent in their individual declaration only has the right to apply half of the minimum for descendants corresponding to children 1. and 2, as none of them have incomes greater than 1,800 euros. In this regard, in determining the minimum for descendants, the amount approved by the Valencian Community has once again been applied, which modifies the amount corresponding to the minimum for descendants. (Back)