7.2.5. Net labor performance: deductible expenses

The net income from work will be the result of reducing the total income by the amount of deductible expenses.

The following will be considered exclusively deductible expenses:

1. Contributions to Social Security or to compulsory general mutual funds for public servants.

2. Deductions for passive rights.

3. Contributions to orphanages or similar entities.

4. The fees paid to unions and professional associations, when membership is mandatory for the performance of work, in the part that corresponds to the essential purposes of these Institutions, with a limit of 500 euros per year (art. 10 Rgl.).

5. Legal defense expenses arising directly from litigation arising from the relationship between the taxpayer and the person from whom he receives income, with a limit of 300 euros per year.

6. Other deductible expenses. In general, 2,000 euros per year may be deducted as other expenses. This amount will be increased in the following cases:

• In the case of unemployed taxpayers registered at the employment office who accept a job that requires the transfer of their habitual residence to a new municipality, this amount will be increased, in the tax period in which the change of residence occurs and in the following one, up to an additional 2,000 euros per year.

  This increase in deductible expenses is only applicable to the net work performance of the new job accepted.

• In the case of disabled people who earn income from work as active workers, this amount will be increased to up to 3,500 euros per year. This increase will be up to 7,750 euros per year for disabled people who are active workers and can prove that they need help from third parties or have reduced mobility, or a degree of disability equal to or greater than 65 percent.

  This increase in deductible expenses is only applicable to the portion of net work income as an active worker with a disability.

  ACCREDITATION OF DISABILITY (art. 72 Rgl.)

  Taxpayers who prove a degree of disability equal to or greater than 33% will be considered disabled persons.

  The degree of disability must be accredited by a certificate or resolution issued by the Institute of Migration and Social Services or the competent body of the Autonomous Communities.

  In particular, a degree of disability equal to or greater than 33% will be considered accredited in the case of Social Security pensioners who have been granted a pension for total, absolute or severe permanent disability and in the case of pensioners of passive classes who have been granted a retirement pension for permanent disability for service or disability.

  Likewise, a degree of disability equal to or greater than 65% will be considered accredited in the case of persons with disabilities whose incapacity is declared judicially, even if it does not reach said degree.

  CONCEPT OF "JUDICIAL INCAPACITATION"

  The expression "judicially declared incapacity" refers only to the civil system, that is, to that contemplated in article 199 of the Civil Code for the reasons set out in article 200 of the same text and under the procedure provided for in the civil procedure law.

  ACCREDITATION OF THE NEED OF THIRD PARTIES OR REDUCED MOBILITY (art. 72.2 Rgl.)

  Taxpayers with disabilities must prove the need for assistance from third parties to travel to or from their workplace, or their reduced mobility to use public transport, by means of a certificate or resolution from the Institute for Migration and Social Services or the competent body of the Autonomous Communities in matters of disability assessment based on the opinion issued by the assessment and guidance teams dependent on them.