When making the Income Tax return, it must be taken into account that there are a series of tax deductions that go unnoticed by the Tax Agency, and do not appear automatically in the draft of the Income.
One of them is the deduction for maternity.
If you are a working woman and you have a child under the age of three,you must be careful not to miss this deduction.
From AYCE Laborytax we want you to be clear about how this reduction is applied, and in this post we give you the keys so that nothing escapes you.
What is the maternity deduction?
deduction for maternity
is regulated by the Law on Personal Income Taxes (IRPF) since 2003, and consists of a benefit to working women with children under the age of three of up to EUR 1 200 per year for each child conceived in Spain.
In the case of adoption,working women may enjoy this benefit regardless of the age of the child, during the three years following the date on which the minor was registered in the Civil Registry.
If the mother dies or in case the custody belongs only to the father, the man could benefit from the corresponding deduction for maternity, as long as the aforementioned requirements are met.
The limit for the deduction for each child will always depend on the mother’s annual contribution, computing both the contributions and the quotas for their full income, but without taking into account the corresponding bonuses.
How is the deduction for maternity charged in the Income?
There are two ways available to collect maternity deductions:
- Apply the deduction in the annual Income Statement.
- Collect the advance deduction on a monthly basis.
Assumption 1: Apply the deduction in the 2017 Income Tax Return
To apply the deduction for maternity in the 2017 Income,
you must include the corresponding data in box 571,which you will find in the section “Calculation of the Tax and Result of the Declaration”.
As indicated by the Tax Agency itself, a window must be opened in which all the corresponding information must be included in order to calculate the amount of the deduction for maternity:
- It will be necessary to indicate in the corresponding section the months of 2017 in which the activity was carried out,regardless of whether it is self-employed or employed. In cases where you would have worked for the full year, you would have to check the box with an X.
- It will also be necessary to indicate the amount of the contributions corresponding to the Social Security or to the Mutua Alternativa if any,in each of the months of the year 2017. In the event that these contributions were equal to or greater than 100 euros, it would simply be necessary to mark the box established with an X, so it would not be necessary to enter them.
- If bonuses had been received for an advance payment of the deduction in 2017,the total amount obtained would have to be obtained.
Assumption 2: Collect the early bonus on a monthly basis
There is also the option to collect monthly and in advance the maternity bonus.
To benefit from this possibility, it must be indicated through form 140,and 100 euros per month would be received for each child.
This amount would be reflected in the Income Statement, but in no case would it be taxed.
The application for this bonus can be made by ordinary mail, by telephone, by Internet(www.agenciatributaria.es)or in person at the Administrations of the Tax Agency.
It is important to note that, in order to enjoy this deduction or the bonus, it is not necessary for the person to be a personal income tax filer.
In short, if you are a working mother with one or more children under the age of three, you can benefit from the deduction for maternity, enjoying a bonus of up to 1,200 euros per year, or 100 euros per month.
In case of adoption, this bonus can be obtained regardless of the age of the minor child.
Eye! because you are not entitled to a deduction when the mother receives unemployment benefit.
If you have any questions about it, at AYCE Laborytax we will be happy to advise you and help you in everything you need.