One of the keys to the income statement is to adapt the tax to our personal and family circumstances. In the case of people with children, this may be especially important, since it may give them the right to apply the minimum for descendants. Or what you have surely heard at some time as ‘include the children in the Income’.
This minimum for descendants is exempt from taxation in the Personal Income Tax (IRPF) because the Treasury considers that these amounts are essential to cover family needs. In this case, to cover the circumstances of our sons or daughters. It is a mechanism similar to the ‘taxpayer’s minimum’, which is considered in the same way but attending to the needs of the taxpayer himself.
As indicated by the Tax Agency, the minimum for descendants will depend on the number of people who give right to that minimum:
-2,400 euros per year for the first descendant.
-2,700 euros per year for the second descendant.
-4,000 euros per year for the third descendant.
-4,500 euros per year from the fourth descendant.
The counting method is easy: start with the oldest descendant and work your way down. In addition, the Treasury grants an expanded minimum for descendants in the case of those under three years of age, who give the right to an increase of 2,800 euros per year.
Which children can be included in the Income
In any case, not all the taxpayer’s children are entitled to the minimum for descendants. The Tax Agency collects the requirements that must be met:
-That they are under 25 years of age, unless they have a disability of at least 33%.
-That they live with the taxpayer. In cases of legal marital separations, which parent has guardianship and custody will be taken into account, although the Treasury clarifies that economic dependence is equated to coexistence in these cases (except in the case of payment of annuities for food).
-That they did not receive income in excess of 8,000 euros per year in the year.
-That they did not present the Income for an amount greater than 1,800 euros per year.
How to include the children in the Income
The Tax Agency and in which it explains how taxpayers must include children in their income tax return. To do this, the taxpayer must go to the draft section of ‘Identification data’.
The first step is to review the information uploaded by Renta Web in order to check for possible errors. Next, the taxpayer may include the data that did not appear. You can do this by clicking on the pencil symbol that appears next to each section.
When doing so, a window will open in which the taxpayer must include the respective data of the descendant: their relationship with him and other personal data such as name and surname, date of birth or DNI. To confirm the data you must click on ‘Accept’.
When the identification data is complete, the taxpayer must click on ‘Continue’ to continue processing the return. At that time, the ‘Summary of tax returns’ will be accessed, in which the impact of the process on the result can be consulted. Subsequently, the taxpayer will be able to navigate through the menu and complete the processing of the return including (if applicable) the pertinent deductions and modifications.