Example 2. De facto couple with common children residing in the Community of Galicia

Mr. AST and donates MVV, live together without marriage and have three children in common who live with them and whose ages are 18, 12 and 6 years, 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: Since the Autonomous Community of Galicia has not exercised regulatory powers in regulating the amounts of the personal and family minimum, the amount of this determined in accordance with the provisions of the Personal Income Tax Law must be used to calculate both the state tax and the regional tax.

Individual taxation of the father and mother:
1. Taxpayer minimum: 5.550
2. Minimum per descendants:
  - Son 1. (18 years old) (50% s/2,400): 1,200
  - Son 2. (12 years old) (50% s/2,700): 1,350
  - Son 3. (6 years) (1): 0
  Minimum total for descendants: 2.550
Total personal and family minimum (5,550 + 2,550): 8.100
Joint taxation of the father or mother with minor children: ⁽¹⁾
1. Taxpayer minimum: 5.550
2. Minimum per descendants:
  - Son 1. (18 years old) (50% s/2,400): 1,200
  - Son 2. (12 years) (50% s/2,700).:1,350
  - Son 3. (6 years) (100% s/4,000): 4.000
  Minimum Total by descendants: 6.550
Total personal and family minimum (5,550 + 6,550): 12.100
Individual taxation of the other parent: ⁽²⁾
1. Taxpayer minimum: 5.550
2. Minimum per descendants:
  - Son 1. (18 years old) (50% s/2,400): 1,200
  - Son 2. (12 years old) (50% s/2,700): 1,350
  - Son 3. (6 years): 0
  Minimum total for descendants: 2.550
Total personal and family minimum (5,550 + 2,550): 8.100

Notes to the 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).

When the father and mother choose to pay taxes individually, the minor child must also file their own individual Personal Income Tax return In addition, when submitting an individual Personal Income Tax return with income greater than 1,800 euros, will not entitle any of their parents to the application of 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 must appear as the taxpayer's minimum. ^(Back)

⁽²⁾Since there is no marital bond between the parents, the family unit can 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 the general amount of 5,550 euros per year. Likewise, when the father and mother live together with the children who are part of the family unit, the reduction in the tax base of 2,150 euros per year referred to in article 84 of the Personal Income Tax Law is not applicable. ##1##See, in this regard, Chapter 13 above in which the reductions in the general tax base and of savings are discussed. For its part, in the case of joint taxation of the father or mother with the minor children (children 2. and 3.), the Minimum for descendants must be distributed equally among the parents with whom the descendants who do not have incomes exceeding 1,800 euros live, even if one of them pays joint taxes with the children. For this reason, the Minimum for descendants corresponding to the youngest child (child 3), with income greater than 1,800 euros, corresponds entirely to the father or mother with whom they are taxed jointly. Consequently, the other parent will not be entitled to apply the Minimum for descendants for said child.

The Minimum for descendants corresponding to the adult child (child 1), who due to this circumstance is not part of the family unit, also corresponds to both parents in equal shares.

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. ^(Back)