Are you aware of the new tax benefits for families?
With the approval of the General State Budget for 2018, a series of tax measures have come into force that aim to reduce the taxation of taxpayers who bear greater family burdens, such as working women with children under 3 years of age, large families or families with dependent persons with disabilities.
Increase in the maternity deduction
Working mothers, who are entitled to the maternity deduction of 100 euros per month for children under 3 years of age, may also apply a deduction of up to 1,000 euros per year for nursery expenses until the month before the child can begin the second cycle of early childhood education in the year in which they turn 3 years old.
It will not be possible to request advance payment of this increase in the maternity tax credit. Therefore, working mothers who meet the requirements will be able to apply the credit in their 2018 tax return.
Increase in the tax deduction for large families
From August 2018, the amount of the deduction for large families is increased by up to 600 euros per year for each of the children that are part of the large family that exceeds the minimum number of children required for said family to have acquired the status of a large family of general or special category.
This increase does not benefit all large families, but only those with more children than the minimum required to qualify as a general or special large family. In these cases, families already receiving the large family tax credit do not need to do anything; starting in August, their tax credit will increase by €50 per month for each child exceeding the minimum number required for the family to qualify as a large family
New scenario for deduction for dependent persons with disabilities
Also effective from August 2018, in addition to the deduction provisions for dependent persons with disabilities that were already being applied, the deduction for the legally married spouse with a disability is added, provided that the latter does not have annual income, excluding exempt income, exceeding 8,000 euros nor generate the right to deductions for ascendants or descendants with disabilities provided for in the Personal Income Tax regulations.
The amount of the deduction is 1200 euros per year and advance payment can be requested from August 2018.
Deduction applicable to families with members living in European Union member states
Taxpayers whose family members (spouse and children) live in a European Union country other than Spain cannot file a joint tax return. To address this tax disadvantage, this new deduction is being introduced and can be applied to the 2018 tax return.
This deduction will allow taxpayers who have members of their family unit living in other European Union states to equate the amount payable on their individual tax return with the amount that would have resulted in payment if they had opted for a joint return as if all family members had been living in Spain.
Recommendations
If you have a family situation that you believe could benefit from any of the new family tax deductions we've explained, Ambit Assessor recommends that you consult your tax advisor. You can contact us by email at ambit@ambitassessor.com or at our offices.
At Àmbit Assessor we are experts in national and international taxation and we would be happy to help you.
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A graduate in Business Administration from the University of Barcelona, she continued her education with a Postgraduate Diploma in Accounting and Management Control from Pompeu Fabra University, and completed various courses in tax and fiscal matters offered by the Terrassa Chamber of Commerce, the Barcelona Bar Association, and the Center for Financial Studies. Before joining Àmbit Assessor in 2001 as a tax and accounting consultant, she worked as an administrative assistant at Caixa Manresa and Banc Sabadell and as a tax information call center operator at the Spanish Tax Agency. For three years, she served as treasurer of the L'Alzinar Recreational and Cultural Society, a position she held concurrently with her work at Àmbit Assessor.
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