The Tax Agency allows children to be included in their parents’ income tax return. But as long as a series of conditions are met. We tell you everything you need to know about it.
The entry to the labor market on the part of our children also implies, to a greater or lesser extent, a certain economic independence. And, with it, the first doubts regarding the income tax return arise. What happens if they have found work, but are still living at home? Can we include them in the income tax return as we did in the past?
When to include children in the income
To include our son in the income tax return, The first condition that must be met is that the child lives with the parents. And, furthermore, be dependent on them financially. In the event that, for example, our child is studying abroad, but remains our dependent, it can also be included in the declaration.
Another condition that must be met has to do with age. For a child to be included in her parent’s return, he or she must be under 25 years old. The only exception is in case of disability equal to or greater than 33%. In addition, income must also be taken into account, since this cannot be greater than 8,000 euros. Otherwise, it could not be included in the joint declaration. Finally, a descendant cannot be included if he or she has an income of more than 1,800 euros and has filed the declaration individually.
One of the most common doubts has to do with parents who no longer live together, For example. In the event that there is a separation, divorce or similar scenario, it is the parent who has custody of the dependent who may apply the minimum per descendant. In the event that custody is shared, it will be prorated equally between the two parents.
Furthermore, an aspect that is not always known is that this regulatory framework does not only apply to children. The same conditions are also maintained in the case of a grandchild who lives with his grandparents.
How to declare children’s income
Once the doubt has been cleared up, the next step is to know how we can declare the children’s income. in our personal income tax. In this case, the first thing we have to do is include them in the Identification data section, entering the name, surname and ID.
In the event that you work and the annual income is less than 8,000 euros, Your income from work will be added to that of the rest of the family. That is, for practical purposes the amount received will be added to the income of their parents. However, and despite this, as personal income tax is adapted to each situation, the Tax Agency will increase the personal and family minimum depending on the number of children. So the tax rate will fall and we will be able to obtain a more satisfactory result for our declaration.
