The mortgage or rent, salary, children, the pension plan, donations, the self-employed quota… The 2022 – 2023 Income campaign begins and there are many concepts that the taxpayer must take into account when time to present the draft of the declaration, whose term opens on April 11. And knowing which expenses are deducted and which are not is a priority.
Deductible expenses are those that, being established by the regulations, can be deducted from the gross income generated, a saving that is made effective in the Income statement, having to pay less for rent and tax.
If the taxpayer signed a mortgage loan for the purchase of a home before January 1, 2013, up to 15% of what was paid (7.5% state and 7.5% regional) in the last year can be deducted with a maximum base of 9,040 euros, that is, you can deduct 1,356 euros in your income statement. Likewise, the expenses of the deed of purchase and mortgage (notary, agency, appraisal and taxes such as VAT), as well as the home or life insurance that are linked, can be deducted.
Some autonomous communities present other discounts for other concepts related to the habitual residence.
At the other extreme, you cannot deduct the mortgage on a second or vacation home or on a flat intended for rent.
Autonomous rent deductions, with different percentages depending on the region, are intended for young taxpayers, those over 65 or with disabilities, or large families. However, taxpayers who have a lease signed before January 1, 2015 (including subsequent extensions) have a state deduction of 10.05% of the rent paid, up to a maximum of 24,197.20 euros per year of tax base.
You can deduct 20% of membership fees and contributions to political parties, federations, coalitions or electoral groups up to a maximum of 600 euros, and 500 in the case of fees to professional associations. On the other hand, in the affiliation to the unions, the savings of the money contributed can reach 35% and without a limit amount to return.
Regarding donations to NGOs, the taxpayer can deduct in the declaration up to 80% of the first 150 euros contributed and 35% of the rest of the money.
There are state deductions for maternity, large family or pensions and, on the other, regional deductions. Each community establishes its own concepts of deductible expenses, with percentages that vary each year, but all fall into four blocks:
During the first three years of the child’s life (or three years after the adoption), the working mother can obtain a tax benefit of up to 1,200 euros in her income statement, in addition to up to 1,000 euros for childcare and school expenses. In the last Income campaign, the parent had to have a job employed by another or carry out a professional activity on her own, although for the 2022 – 2023 Income, mothers who are recipients of contributory or welfare benefits can also opt.
The personal and family minimum is the part of the income that is not taxed as it is used to satisfy basic personal and family needs. It is obtained by adding the minimums per taxpayer, descendants, ascendants and disability. Requirements that descendants must meet:
Large families and single-parent families with two or more children are deducted up to 1,200 euros per year, an amount that increases to 2,400 in the case of being a special large family. There are also special deductions if the taxpayer lives (for at least six months a year) with ascendants over 65 or disabled.
In Income 2022 – 2023 the maximum deduction for private pension plans goes from 2,000 to 1,500 euros. On the other hand, company pension plans improve the deduction up to 8,500 euros.
Deductible expenses in personal income tax for the self-employed with respect to sales and income deserve a special mention and that allow calculating the profit of the activity.
As the Tax Agency points out, the requirements to consider an expense as a deductible are:
Some of the most common expenses:
Fines and other administrative sanctions, gambling losses, expenses in fiscal countries or input VAT (deductible VAT included in the quarterly VAT declaration) are some of the items that are not considered deductible expenses.
According to the criteria of The Trust Project
