Example 2. De facto couple with common children, residents in the Valencian Community
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: 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 set in the Personal Income Tax Law .
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 | 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 | ||
| Son 3 (6 years old)(1) | 0 | Son 3 (6 years old)(1) | 0 | ||
| Minimum total by descendants | 2.550 | Minimum total by descendants | 2.805 | ||
| Minimum personal and family total | 8.100 | Minimum personal and family total | 8.910 | ||
Note to 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 (minimum for the state taxpayer) and 6,105 euros (minimum for the regional taxpayer) must appear as the taxpayer's minimum. (Return to state minimum) (Return to regional minimum)
2. Joint income tax return of the father or mother with minor children: (2)
Note to example:
(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 5,550 euros per year (state minimum) and 6,105 euros (regional minimum for residents of the Valencian Community).
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. 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)
Note to example:
(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. In this regard, in determining the minimum for descendants, the amount approved by the Valencian Community has been applied again, which modifies the amount corresponding to the minimum for descendants. (Back)