Minimum Living Income
In 2020 I received the Minimum Living Income regulated by Royal Decree-Law 20/2020, of 29 May. What are the implications for my tax return?
The minimum subsistence income received from social security is exempted.
In the event of receiving other benefits from the Autonomous Communities in the form of minimum insertion income and other aid established by these or by local entities to attend to groups at risk of social exclusion, situations of social emergency, housing needs, food needs, schooling and other basic needs of minors or disabled dependents, they are exempt as a whole if the sum does not exceed 11,279.39 euros in 2020 (1.5 times the IPREM).
If the combined amount of all the benefits received exceeds the exempt amount, the excess shall be considered as personal income from work.
In the event that a single amount is fixed for the members of the cohabitation unit, the amount to be attributed to each member will be the result of dividing the total benefit by the number of beneficiaries integrated in the cohabitation unit.
The holder of the minimum subsistence income and all members of the household (minors or not) are obliged to file a personal income tax return, whether or not the amount received is exempt and regardless of whether or not they meet the requirements established in Article 96 of the Personal Income Tax Act regarding the obligation to file a tax return.
Therefore, even in cases where the minimum living income is fully exempt and the recipient has not earned any other income, they must file a personal income tax return for 2020. In this case, the boxes on your tax return will be zero.
Preparation of your Personal Income Tax return (Renta WEB 2020)
When you access Renta WEB or your tax details, you will be informed that you are obliged to file a tax return as you have received the minimum subsistence income.
Depending on the amount received, we can distinguish between two cases:
The minimum living income is exempt because its amount, together with the other benefits referred to above, does not exceed 11,279.39 euros.
As the amount is exempt, it shall not be included in your return.
Example:Taxpayer has received €239.05 of minimum living income
You will be shown the amount received and a notice with its tax treatment.
The minimum living income is not exempt because its amount, together with the other benefits referred to above, exceeds 11,279.39 euros.
The amount exceeding the exempt limit will be shown in the section corresponding to earned income.
Example:Taxpayer who received the following benefits in 2020:Minimum living income 2,280.85
Minimum insertion income:7,567.40
Other aid from the Autonomous Regions and EEL of a social nature:2,800
Other aid from the Autonomous Regions and EEL of a social nature:1,200
The sum of all aid amounts to 13,848.25
2,568.86 (€13,848.25 - 11,279.39) will be automatically included in personal income from work.
The Minimum Vital Income does not generate the right to the deduction for maternity or the deductions for large families or disabled dependents.
AEAT information and assistance services
In order to make it easier for taxpayers to file their returns, the AEAT offers them a series of information and assistance services:
Telephone helpline to resolve doubts about Personal Income Tax for the 2020 financial year.
Income Information phone line:90133 55 33/91 554 87 70 (Monday to Friday between 9 am and 7 pm, mainland time)
Provision of certain services (From 24 March 2021)
Obtaining the reference number, which allows access to Renta 2020 services.
Access to tax information
Download the app
Sending of informative letters
The AEAT will send an informative letter to those members of the cohabitation units who have obtained benefits under the Minimum Vital Income scheme, informing them of the obligation to file a tax return for the holder and the rest of the members of the cohabitation unit, as well as the basic aspects that allow the filing of the income tax return:Deadlines, help services, electronic identification systems.
Likewise, a letter will be sent to the owners of cohabitation units in which there are under-age members without tax numbers (NIFs), aimed at making it easier for the AEAT to obtain them.
Telephone tax return preparation service "We’ll Call You Plan".
As of 6 May, the AEAT has made available to taxpayers the tax return preparation service, through which the AEAT calls taxpayers and prepares and files returns on behalf of the taxpayers.
Appointments must be made in advance, either online or by calling 901 12 12 24 / 91 535 73 26 (automatic service) or 901 22 33 44 / 91 553 00 71, from 4 May 2021 (from 9 am to 7 pm Monday to Friday, mainland time).We will call you on the day and at the time agreed.
Office tax return preparation service
From 2 June, taxpayers can go to AEAT offices for assistance in preparing and filing their 2020 tax return.
Appointments must be made in advance, either online or by telephone on 901 22 33 44 / 91 553 00 71, from 27 May 2021 (from 9 am to 7 pm Monday to Friday, mainland time).We will assist you at the centre of your choice on the day and time requested.
NOTIFICATION: For more information, please consult the Renta 2020 Informer in section 01 "What's new in the Renta 2020 campaign".In the event that the information provided is not useful and this is indicated in the reply, additional help is available in the form of a real time CHAT with AEAT specialists in the matter, whose uninterrupted opening hours are from 9 am in the morning to 2.30 pm in the afternoon.