Parents may apply descendant and disability minimums if the child is financially dependent

The application of descendant and disability minimums in Personal Income Tax (IRPF) is a key aspect for optimizing the tax burden of families. Recently, the Directorate General of Taxes (DGT) has specified the necessary conditions for parents to exercise this right when the child with a disability does not reside in the same household.

What the DGT has ruled

The binding ruling establishes that parents may apply both the descendant minimum and the disability minimum provided that the following requirements are strictly met:

• Degree of disability: The descendant must prove a degree of disability equal to or greater than 33%.
• Child's income limits: The child must not have annual income exceeding 8,000 euros (excluding exempt income) nor file a tax return with income exceeding 1,800 euros.
• Economic dependency: Since there is no cohabitation, it is imperative to prove the child's economic dependency on the parents.

In cases where these conditions are met, the amount of the minimums will be prorated in equal parts between both parents.

What this means for you

If you are the parent of a child with a disability who does not live with you, but upon whom you provide economic support, this criterion allows you to reduce the taxable base of your IRPF return. The regulations allow for the lack of cohabitation not to be an impediment to accessing these tax benefits, provided that the economic reality demonstrates that the child depends on the parents and that their own income remains within the legal limits established by the IRPF Law and the regulations of this tax.

What you should do

To ensure the correct exercise of this right, it is fundamental to have the documentation that proves the descendant's degree of disability and the means that demonstrate effective economic dependency. Since the administration requires proof of these facts in the event of an inspection, it is necessary to organize the financial information of both members of the family unit to comply with the permitted income thresholds.