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

Married couple formed by Mr. RPG and Mrs. MGB, both have worked in 2023. He, as a civil servant 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 for all months of the year in the Special Regime for Self-Employed Workers and for which she paid contributions for an annual amount of 2,100 euros.

The couple has four children aged 20, 18, 15 and 13 respectively, who will be studying in 2023 and are eligible for large family status in the general category.

Determine the amount of the deduction for large families corresponding to the 2023 financial year and the result of its 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 rate IRPF of Mrs. MGB was 300 euros in 2023.

Solution :

Declaration of the taxpayer Mrs. MGB

Previous note: Mr. RPG You will not have to enter anything in your IRPF declaration in the boxes relating to the deduction for large families because you gave up your right when requesting the collective advance payment.

Differential fee: + 300

Large family deduction

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

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

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

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

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

Advance payment

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

Number of months you have received the advance payment: 10 months
Amount of the 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 the general category: ⁽⁶⁾

Number of months you have received the advance payment: 10 months
Amount of the 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

Result of declaration (300 - 300) = 0

Notes to the example:

⁽¹⁾ As a result 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 counted. will apply in full the amount of the corresponding deduction and the entire advance payment received in its 2023 IRPF declaration. ^Back

⁽²⁾ In the case of a transfer, the total contributions and fees to Social Security and Mutual Societies corresponding to both parents are taken into account jointly (2,100 + 527 = 2,627). Since the total amount of contributions and fees to Social Security and MUFACE is higher, the maximum amount of the deduction prevails in the latter. ^Back

⁽³⁾ According to 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 the general category is 3. If you have 4 children who have been part of the large family during 2023, the excess will be 1 child. ^Back

⁽⁴⁾ Since the total amount of this deduction (up to 600 euros for each child) 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 Income Tax Law will not be taken into account for the purposes of the limit on the amount of contributions and fees paid to Social Security and alternative mutual societies 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 to have been obtained by the taxpayer in whose favour the deduction was granted. ^Back

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

It should also be noted that, as set out in Order HAC/763/2018, dated 10 July ( BOE of 18 July), taking into account the information available to the Tax Agency pursuant to the provisions of article 60 bis.6 of the Personal Income Tax Regulations , it will not be necessary for taxpayers requesting advance payment of the deduction for large families to provide additional information, since the Tax Agency will be the one to calculate 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 a large family of general or special category and will proceed, together with the amount of the deduction for large families, to its advance payment. ^Back