The 2018-2019 Income campaign began last Tuesday with some news that have to do with the reduction of quotas for the lowest rents and with the introduction of deductions. For the income statement to return, it is advisable to check the boxes related to the change in personal situations, exempt income or state and autonomous deductions, among other. Although only taxpayers who enter income from work of more than 22,000 euros from a payer or more than 12,643 euros from several payers are obliged to make the declaration, sometimes, it is on account to perform it to access different tax benefits.
In this line, María Concepción Saavedra Serrano, professor of the Department of Economics and Business at the European University, recalls the following: «When erentl result of Renta 2018 (model 100) Negative or to return (box 670), is due to the fact that the fee resulting from the self-assessment is lower than the amount of the payments on account (payments already made or anticipated by the taxpayer during that year), or by withholdings or income on account that have been practiced by the payers of various incomes (salary, bank interest, dividends, etc.) or for fractionated payments made by him, in the case of performing any economic activity as a professional or as an independent entrepreneur. These payments on account must be entered in boxes 560 to 568 of the declaration.
«In addition to the reductions (general and special) of net returns (labor, capital, economic activities), there are reductions in the tax base, for example, those derived from contributions to social security systems (pension plans and other systems) that allow reducing the tax base, "says Saavedra Serrano.
The IRPF Law qualifies as deductible Contributions to pension plans (box 8), contributions to the Social Security or to compulsory general mutuals of civil servants (13) the quotas paid to unions (14) and professional associations 15) or the costs of legal defense derived directly from litigation with the employer (16).
Real estate capital yields
The taxpayer can deduct all the expenses necessary to obtain said returns: Property Tax (IBI), community expenses, conservation and repair expenses, property insurance premiums, mortgage loan interest, amortization of the part corresponding to the construction of said property and balances of doubtful collection when this circumstance is sufficiently justified, Saavedra Serrano points out. However, the professor from the European University recalls that "some of the expenses mentioned they have a limit (maintenance and repair costs and interest on mortgage loans). Also, if the property is a house, the net returns (income minus deductible expenses) are reduced by 60% ». Income, deductible expenses, reductions and other relevant information on real estate capital returns are reported in boxes 79 to 93.
"Likewise, the personal and family minimum to adapt the tax to personal and family circumstances they diminish the entire quota of the self-assessment ", adds Saavedra Serrano. Thus, the personal minimum -which includes 5,550 euros- is added 2,400 euros for the first descendant, 2,700 euros for the second, 4,000 euros for the third and 4,500 euros for the fourth and following offspring. These minimum amounts increase by 2,800 euros when the child is less than three years of age.
The taxpayers who during 2018 they have received maternity or paternity benefits they do not have to declare the exempt amounts and deductions can be deducted. The draft must already include these data, but it is worth reviewing them in the fiscal data section.
On page 17 of the Income declaration model, the boxes 611, 612 and 613 relating to the deduction for maternity and the increase for expenses in day care centers, boxes 623 and 624 in the deduction for descendants with disabilities in charge; boxes 636 and 637 in the deduction for dependents with dependent disability and, boxes 645 and 646 in the deduction for spouse not legally separated with disability; boxes 660 and 661 in the deduction for large families and, finally, boxes 662 and 663 in the deduction for ascendant, legally separated or without marriage, with two children without the right to receive annuities for food.
Deduction for rent
It maintains a transitory regime for deduction for rent of the habitual residence to taxpayers who have signed a lease agreement prior to January 1, 2015. This deduction is recorded in the boxes that go from 715 to 721.
Deduction for habitual residence
This continues to be applicable for those who bought their house or made some payment for its construction before January 1, 2013. The deduction includes up to 15% of the amounts invested with a limit of 9,040 euros and is entered in box 698 (state part) and 699 (autonomous part).
Annuities for food
Annuities for food in favor of children satisfied by judicial decision (box 527) reduce the tax base.
Deduction for donations and contributions to parties
Donations, donations and contributions made by the taxpayer are entitled to this deduction to foundations and associations of public utility, non-governmental organizations, sports federations or entities of the Catholic Church, among other. The amount of this deduction will be entered in box 723 of Annex A.2 of the Income statement. The contributions to political parties they also give the right to a deduction of 20% of the membership fees and they are recorded in box 725 of Annex A.2.
Self-employed persons may deduct the expenses for corresponding supplies "to the part of the dwelling that is affected by the economic activity carried out by the taxpayer" as well as living expenses. These fiscally deductible expenses range from boxes 121 to 138.
Property gains that are shown in the transmission by taxpayers over 65 years of patrimonial elements are exempt, provided that the total amount obtained by the transmission is destined within a period of six months to constitute a life annuity insured in their favor. The total maximum amount will be 240,000 euros and is included in the boxes that go from 1237 to 1243.
Must review them one by one to avoid passing tax aid in rent, school fees or births of children last year. The boxes relating to the autonomous deductions are those that start from 1039. "The deductions of the entire fee, both state and regional, and deductions from the net fee (deductions for maternity, family and other deductions), can decrease the quota resulting from self-assessment ", explains Professor Saavedra Serrano.