Parents with custody may apply the minimum for descendants

Managing tax obligations following a separation or divorce frequently raises doubts about which parent can benefit from family deductions and minimums. The Dirección General de Tributos (DGT) has recently clarified the application of these concepts in Personal Income Tax (IRPF).

What the DGT has ruled

The advisory body has determined that there is an incompatibility between the right to the minimum for descendants and the regime for child support annuities. According to the interpretation of current regulations, the parent who holds custody of the children is the one entitled to apply the minimum for descendants in their tax return.

Conversely, the parent who does not have custody but must pay child support must apply the special rules established in Articles 64 and 75 of the IRPF Law. Regarding the possibility of filing a joint tax return with the children, the DGT establishes that this right belongs exclusively to the person who holds custody on the date of the tax accrual.

What this means for you

If you are in a situation of separation or divorce, the key to your tax impact lies in the judicial ruling regarding custody. If you are the parent with custody, you have the power to choose between individual or joint filing, in addition to applying the minimum for descendants. If you do not have custody, even if you comply with child support payments, you will not be able to claim the minimum for descendants or opt for joint filing, and must instead pay tax under the child support annuities regime.

What should be done

It is essential to verify that the custody situation reflected in the tax return matches the current judicial ruling. Since the application of these concepts depends on the tax accrual date, any change in the custody situation must be duly documented. It is recommended to assess each particular situation to ensure that the application of minimums and the choice of filing model strictly adhere to the regulations and the legal reality of the family.