Income Tax Return: What Can You Deduct If You Have Children?

BarcelonaThe income tax return campaign will begin on April 2nd, requiring submission of income and earnings from 2024. Filing will be possible until June 30th. The starting gun will be on April 2nd, but only for filing online. Telephone appointments cannot be scheduled until April 29th; this service will be activated starting May 6th. Those who prefer to file in person will not be able to apply until June 30th.

Families with children have a series of deductions or reductions available when filing their tax returns. If the requirements are met, they are cumulative, meaning they are not incompatible. With the help of Benja Inglés Juanpere, associate professor of financial and tax law at the UOC, we have outlined them:

Mothers with children under three years of age are eligible, as are fathers raising a child without the mother or one of the parents if they are of the same sex. The deduction will have a maximum amount of 1,200 euros per year. or the equivalent of 100 euros per month. If the mother is entitled to this tax deduction and pays childcare costs at daycare centers or early childhood education centers, the amount will be increased by a maximum of 1,000 euros.

Families with three or four children are eligible, and in the case of single-parent families, those with two children are eligible. In this case The maximum deduction is also 1,200 euros per year (100 euros per month). However, there is a 1,200 euro increase for special large families, that is, those with five or more children. There will also be a 1,200 euro increase for each child with a disability.

Parents with children under 25 years of age who live with them or are financially dependent on them and do not file a tax return can benefit. Children over 25 years of age with a disability of 33% or more who also do not file a tax return can also benefit. The tax deduction amounts are €2,400 per year for the first child, €2,700 per year for the second, €4,000 per year for the third, and €4,500 per year for the fourth or more. If the child is under three years of age, the minimum will increase by €2,800 per year. If the child has a disability between 33% and 65%, the increase will be €3,000 per year, and if the disability exceeds 65%, it will reach €9,000 per year.

There are also deductions depending on the autonomous community where you live. In the case of Catalonia, due to birth or adoption of a child, a deduction of 300 euros can be made if the parents file a joint return. If they file individually, the amount will be 150 euros for each member of the couple, and if the parent is a single parent, 300 euros.

Tips when filing your tax return

In addition to taking all these deductions or reductions into account, the associate professor of financial and tax law at the UOC advises that if you request a draft, you should check that all the information it contains is correct. "Although we accept the information provided by the Treasury, if it is incorrect, it is our responsibility and we may be penalized for any errors or omissions it contains," warns the professor. If in doubt, he adds, it is best to consult a professional. Furthermore, Inglés also recommends reviewing the bank details for direct debit payments, not leaving the tax return until the last few days, and, in the case of a married couple, comparing whether it is better to file a separate or joint return.

Finally, Professor Inglés reminds us that, on the one hand, all documents and invoices that justify any deductions must be kept for a period of five years and, on the other, that if the tax return is payable, the payment can be split into two interest-free installments. In the first, 60% of the amount due is paid, and in the second, which is paid in October-November, the remaining 40%.