Example 5. Marriage with common and non-common children, residents 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. Two common children, aged 22 and 21, respectively, and two others, aged 26 and 24, from a previous marriage of Mr. RSC  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 in the case of individual taxation of each of the spouses and joint taxation 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:⁽¹⁾

State minimum			Regional minimum
Taxpayer tax-free threshold	General	5.550	Taxpayer tax-free threshold	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	Son 1 (24 years old)	2,400	Allowance for descendants	Son 1 (24 years old)	2,400
	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	5.750		Minimum total by descendants	5.950
Allowance for disability	Taxpayer (Don RSC 33%)	3,000	Allowance for disability	Taxpayer (Don RSC 33%)	3.300
Minimum personal and family total		15,450	Minimum personal and family total		16.620

Note to 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 .

Regarding the two children from Mr. RSC's previous marriage Those over 26 years of age do not meet the age requirement (under 25 years of age) and therefore do not qualify for the minimum for descendants. Secondly, Mr. RSC, being the person with whom said descendant lives, being under 25 years old and without income, excluding exempt income, exceeding 8,000 euros per year and not having filed an income tax return, can apply the minimum for descendants in its entirety,   ^(Back)

2. Individual taxation of Mrs. RRT:⁽²⁾

State minimum			Regional minimum
Taxpayer tax-free threshold		5.550	Taxpayer tax-free threshold		6.105
Allowance for descendants	Child 1 (22 years old) (50% s/2,400)	1,200	Allowance for descendants	Child 1 (24 years old) (50% s/2,400)	1,200
	Son 2 (21 years old) (50% s/2,700)	1,350		Son 2 (22 years old) (50% s/2,700)	1,350
	Minimum total by descendants	2.550		Minimum total by descendants	2.550
Minimum personal and family total		8.100	Minimum personal and family total		8.655

Note to example:

⁽²⁾ 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 .  ^(Back)

3. Joint taxation of the family unit ⁽³⁾

State minimum			Regional minimum:
Minimum of the taxpayer	General	5.550	Minimum of the taxpayer	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

Note to example:

⁽³⁾ 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 .

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 the savings . ^(Back)