Example 4. Deduction for large family with transfer of right and advance payment

Marriage formed by RPG and Mrs. MGB, both have worked in 2022. He as an official of a Ministry, with a discount for MUFACE fees for an annual amount of 527 euros. She is carrying out a professional activity for which she has been registered every month of the year in the Special Regime for self-employed workers and for which she contributed an annual amount of 2,100 euros.

The couple has four children, ages 20, 18, 15 and 13, respectively, dedicated to their studies in 2022 and is in possession of the title of large family in the general category.

Determine the amount of the deduction for a large family corresponding to the 2022 financial year and the result of their declaration, taking into account that Mr. RPG transferred his right to the deduction to the other parent, that they collectively requested the advance payment in March and that the differential quota Income Tax from MGB dona It has been 300 euros in 2022.

Solution :

Declaration of the taxpayer Ms. MGB

Previous note: gift RPG You must not enter anything in your personal income tax return in the boxes relating to the deduction for large families for having transferred your right at the time of requesting the advance payment collectively.

Differential fee: +300

Large family deduction

1. For large family of general category: ⁽¹⁾

Number of months of compliance with the requirements: 12 months
Deduction amount = -1,200
Deduction limit (1,200 euros) ⁽²⁾

2. Increase for children who, being part of the large family, exceed the minimum number of children required to be a large family of general category:

Number of children that exceed the minimum: 1 son ⁽³⁾
Number of months of compliance with the requirements: 12 months
Deduction increase = -600.00 ⁽⁴⁾

3. Total deduction for large family (1,200 + 600) = -1,800

Advance payment

1. For large family of general category: ⁽⁵⁾

Number of months that you have received the advance payment: 10 months
Amount of advance payment of the deduction (10 months x 100 euros) = +1,000

2. Increase for children who, being part of the large family, exceed the minimum number of children required to be a large family of general category: ⁽⁶⁾

Number of months that you have received the advance payment: 10 months
Amount of advance payment of the deduction (10 months x 50 euros) = +500

3. Total advance payment (1000 + 500) = -1,500

Difference (deduction 1,800 - advance payment 1,500) = -300

Statement result (300 - 300) = 0

Notes to the example:

⁽¹⁾ As a consequence of the transfer, the months in which any of the taxpayers who were entitled to the deduction meet the requirements (in this case 12 months) and donate MGB will be computed. will fully apply the amount of the corresponding deduction and the entire advance payment received in its personal income tax return for 2022. ^Back

⁽²⁾ As there is a transfer, the total contributions and contributions to Social Security and Mutual Insurance corresponding to the two parents are taken into account jointly (2,100 + 527 = 2,627). Since the amount of total contributions and contributions to Social Security and MUFACE is higher than the maximum amount of the deduction, the latter prevails. ^Back

⁽³⁾ In accordance with article 2 of Law 40/2003, of November 18, on the Protection of Large Families, in this case, the minimum number of children required to be a large family of general category is 3. By having 4 children who have been part of the large family during 2022, the excess will be 1 child. ^Back

⁽⁴⁾ To the extent that the total amount of said deduction (up to 600 euros for each of the children) is applied proportionally to the number of months in which the requirements are met, the amount and limit in this case is 600 euros.

On the other hand, this increase, as established in article 81 bis of the Personal Income Tax Law will not be taken into account for the purposes of the limit of the amount of contributions and fees paid to the Social Security and Alternative mutual benefits accrued in each tax period. ^Back

⁽⁵⁾ The advance payment has been received from March to December (1,000 euros). This amount will be considered obtained by the taxpayer in whose favor the deduction was transferred. ^Back

⁽⁶⁾ For the advance payment of the increase, since this is a collective request, the advance deduction was increased by 50 euros per month for the child who exceeds the minimum number of children required for said family to have acquired the status of a large category family. general.

Also note that, as stated in Order HAC/763/2018, of July 10 ( BOE of July 18), when taking into account the information available to the Tax Agency in Pursuant to the provisions of article 60 bis.6 of the Personal Income Tax Regulations , it will not be necessary for taxpayers who request payment of the advance payment of the deduction for large families to provide additional information. since the Tax Agency will be the one that calculates the increase in this deduction that corresponds to each child that exceeds the minimum number of children required for said family to have acquired the status of large family of general or special category and proceed, together with the amount of the deduction for large families, to its advance payment. ^Back