Taxpayers should know when it is better to opt for the joint or individual statement
ANTONIO GALLARDO / IAHORRO
It is one of the aspects that more queries raised in the income campaign to be one of the most recurrent questions. ¿Statement of income individual or joint? Many questions that are asked in these weeks of full campaign of the statement of income is to know which of them is the most beneficial when it comes to rendering accounts with the Treasury. But the starting point is to know if we can do or not the joint declaration, since this possibility is not available to everyone.
In general, the income statement is presented individually. However, the people integrated in a family unit can opt, if they wish, to declare jointly, provided that all its members are taxpayers for this tax, that is, if one of the members, for example, is working abroad and is subject to the payment of tax on non-residents the right to make the joint declaration is lost.
Family unit according to IRPF: joint declaration mother and child 18 years or under
There are two types of family unit:
-The most common, in the case of marriage, is a family unit consisting of spouses, not legally separated and, if any, minor children, with the exception of those who, with the consent of the parents, live independently of them or children of legal age who are legally incapacitated subject to extended or rehabilitated parental authority.
-In the absence of marriage or in cases of legal separation is a family unit formed by the father or mother and all children who live with one or the other and meet the requirements indicated for the previous modality.
Of the legal regulation of modalities of family unity, the following conclusions can be drawn:
- Any other family group, different from the previous ones, does not constitute a family unit for income tax purposes.
- No one can be part of two family units at the same time.
- The determination of the members of the family unit will be made according to the existing situation on December 31 of each year. Therefore, if a child turns 18 during the year, it will no longer be part of the family unit in that year. The member who dies during the tax period will not be part of the family unit.
Can de facto couples make the joint declaration?
In de facto couples only one of its members (father or mother) can form a family unit with the children who meet the aforementioned requirements and, consequently, opt for joint taxation. The other member of the couple must testify individually. The same criterion is applicable in cases of separation or divorce with guard and shared custody.
Can we change the way we pay?
Once the option for taxing individually or jointly has been exercised, it is not possible to modify it by presenting new declarations in that exercise unless they arise within the voluntary period of presentation of declarations canceling the first one that was formalized.
Once this period has ended, the tax option for this tax period can not be changed until the following year. Joint taxation binds all members of the family unit; If one of the members of the family unit submits an individual declaration, the remaining members must use this same tax regime.
Reduction by joint taxation when is it appropriate?
As a general rule, when both spouses work, the ideal is to present the income statement individually. This is due to the nature of the IRPF that establishes the type of tax for profit tranches.
Let's take an example in which we simplify the tax mechanism: The two members of the family unit pay for a profit of 20,000 euros each and their tax rate is 18%, so the result of these profits is to pay 3,600 each, 7,200 in total. If they present this declaration jointly, they will do it for 40,000 euros, raising the rate to 24%, so the result would be to pay 9,600 euros.
There is an exception, if the income of the two members is less than 5,550 euros (amount of personal minimum) may be appropriate joint declaration, which must also take into account, if any, minimum descendants or ascendants to his charge if there were. This is so because when making the declaration individually each one deduces that amount on their own, that is, a total reduction of 11,100 euros. In case of joint declaration, the deduction of 5,550 euros is also applied, but only once. To this amount you can apply the reduction for joint taxation, but this is 3,400 euros. In total we can apply 8,950 euros, with which we will be harmed.
If only one of the members works and they have exclusive income from work, it makes up for doing it jointly. Thus, in addition to benefiting from the personal minimum, the family unit (3,400 euros) and descendants and ascendants with possible disability increases would be added.
A special case is if we have a mortgage. When we deduct for our variable-rate mortgage loan in which the two members of the family unit have a part of it, it is best to make the income statement separately, as each member of the couple can take the deduction for home purchase of 15%, with a cap of 9,040 euros. Adding both can reach up to 18,080 euros of tax relief. On the other hand, if carried out jointly, the deduction is only 15% on a maximum of 9,040 euros for the two members. If we have paid more than that amount per year, we lose money making the joint statement.
Finally, we must take into account children that also have their "fiscal" effectdepending on the two previous points. If we make the declaration together we will include 100% of the deduction for them, from 1,836 euros per year for the first child to 4,182 euros per year for the fourth and subsequent children. In case of individual declaration, the spouses will have to divide the reduction per child to 50%.
Do not forget that to benefit from these reductions, children have to live with the respondents and be under 25 or older with disabilities. If anyone works, their income can not be more than 8,000 euros per year, if not, they will have to make the income statement individually outside the family unit.