Dependents must meet income limits to qualify for the personal allowance for ascendants

The application of reductions and deductions in Personal Income Tax (IRPF) requires strict compliance with conditions regarding cohabitation, disability, and the income levels of dependent relatives. A recent binding ruling from the Dirección General de Tributos (DGT) has specified the limits that taxpayers must observe to benefit from these tax advantages.

What the DGT has ruled

The DGT establishes that, for an ascendant to count towards the personal allowance for ascendants, the following requirements must be met simultaneously:

• Being over 65 years old or having a disability equal to or greater than 33%.
• Cohabiting with the taxpayer for at least half of the tax period.
• Not having income exceeding 8,000 euros.
• Not declaring income exceeding 1,800 euros (in the case of employment income).

Furthermore, the body clarifies that if these requirements are met and the ascendant has a disability, the taxpayer may also apply the deduction for ascendants with a disability, in accordance with the provisions of Article 81 bis of the IRPF Law. Finally, it is confirmed that union fees maintain their status as deductible expenses from net employment income.

What this means for you

If you have direct relatives (parents or grandparents) who depend on you, cohabitation or financial support is not enough. The tax administration monitors that the income level of these ascendants does not exceed the established legal thresholds. If the ascendant receives pensions or income exceeding 8,000 euros per year, they will lose the possibility of being counted towards the personal allowance for ascendants, which will increase the taxpayer's taxable base.

In the event that the relative has a recognized disability, it is possible to combine the disability deduction and the personal allowance for ascendants, provided that the aforementioned income and cohabitation limits are respected.

What you should do

It is necessary to verify the composition of the ascendants' income before filing the tax return. You must check that their annual income does not exceed the limits of 8,000 euros for general income or 1,800 euros for employment income. Since tax regulations are complex and depend on the particular situation of each family unit, it is recommended to assess your specific case to ensure that the application of these deductions is correct and to avoid possible requests for information from the Tax Agency.