€8,000 limit for applying the minimum for descendants in Personal Income Tax

The application of the minimums for descendants, ascendants, or disability in the Personal Income Tax (IRPF) return is conditioned on the income level of the family members who form the family unit. A recent binding ruling from the Dirección General de Tributos (DGT) has specified how this limit must be calculated to comply with current regulations.

What the DGT has resolved

The DGT has determined that, in order to apply the minimum for descendants, their annual income must not exceed €8,000. The criteria establish that the concept of income is understood as the algebraic sum of net yields, imputed income, and capital gains or losses.

In the specific case of employment income, the calculation must be carried out by taking the net yield defined in the IRPF Law. This includes the reduction for the corresponding deduction and the specific expense of €2,000. If the result of this calculation exceeds the €8,000 threshold, the taxpayer will not be able to apply the minimum for the descendant in their tax return.

What this means for you

This criterion directly affects individuals living with descendants or ascendants who intend to benefit from family minimums in their income tax return. It is fundamental to understand that it is not just about gross income, but about the algebraic sum of all concepts that constitute income according to the regulations.

If a descendant receives employment income that, after applying the reductions and expenses provided for in the law, exceeds €8,000, the possibility of applying said minimum is lost. This implies that the taxpayer must perform a precise calculation of their family members' income to avoid errors in the tax settlement.

What you should do

When considering the application of these minimums, it is necessary to verify the composition of the income of the family members intended to be included. It must be checked that the sum of net yields, imputed income, and capital results does not exceed the established legal limit. Since every family and income situation is different, it is necessary to assess each particular case to ensure compliance with the requirements of the LIRPF.