Time is running out and the Income campaign is at the door once again. The deadline for submission of the declaration, which has come with important innovations in the autonomous region this year following the last tax reform approved by the Generalitat, will be April 11th. In addition to the increase in the exempt personal and family minimum to €6,105 and the decrease in income rates below €60,000, one of the changes that may have the most repercussions are the changes to deductions. By increasing its amount and also being able to enforce maximum income limits, the District Manager increases the potential number of taxpayers who benefit.
Specifically, in general, the amount of all deductions from the district division is increased by 10% for a total of more than thirty, allowing for a deduction from a percentage of the previous habitual residence for those under 35. From reviewing the many things that exist to benefit families, to buying electric scooters or bikes. It’s worth noting that in this area, two major new cuts have been included: one that will allow cuts of up to 100 euros due to the increase in the mortgage rate – undoubtedly a relief for thousands of households – and one that offers the same possibility of performing a fertility treatment that is not covered by public health.
But in addition, and almost as important as the above, is the increase in the maximum income to be able to apply these income reductions, which has been one of the most limiting factors of its use in recent years. Thus, these limits were updated and increased by 17%: from EUR 25,000 to EUR 30,000 for individual returns and from 40,000 to 47,000 for joint returns. A measure that will make it easier for more taxpayers to benefit from tax relief.
In this regard, Arcadi España, Minister of Finance and Economic Model, said that “this tax reform was carried out with Valencian families in mind, in order to help them minimize the impact of inflation on the family economy. and we created new ones.
Below we describe the main cuts in effect for this year:
BUYING A HOME
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If you are 35 years old or younger, 5% of the cost of buying your first home, up to a maximum of 9,015 Euros.
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If you are a person with a physical, mental or sensory disability, a deduction of 5% of the cost of purchasing your home, up to a maximum of 9,015 Euros.
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112 euros for the purchase or rehabilitation of the habitual dwelling with funds from the public assistance of the Generalitat Valenciana.
RENT
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20% for regular residential rental with a maximum of 800 Euros for persons over 35 years old.
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If you are 35 years old or younger, 25% to rent habitual residence with a maximum of 950 Euros; you have an accepted degree of physical, mental or sensory disability; or a victim of gender-based violence. If you meet two or more conditions, your deduction increases to 1,100 Euros.
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5% if you own a house for rent and receive a reasonable monthly rate for it, up to a maximum of EUR 3,300, which does not exceed the reference prices set for the Community of Valencia.
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10% of the rental price, up to a limit of 224 Euros if self-employment or work forces you to move to another municipality 50 kilometers from your usual residence. It will also be compatible with the habitual residence rent deduction determined by the regulation.
HOME IMPROVEMENTS
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As long as the energy is used for self-consumption or other types of renewable energy, 40% of the installations you carry out in your habitual residence or building, 20% if the energy is installed in second homes, up to 8,800 Euros.
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20% of the work you do to protect and improve accessibility and sustainability, up to €5,500. If you do accessibility studies because you have a disability, the deduction will be 50%.
MORTGAGE
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Up to 100 Euros for the interest increase you pay on your home mortgage or loans for rehabilitation or accessibility work.
Population Reduction
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For those who are habitually residing in a municipality at risk of depopulation, this amount can go up to 330 euros and up to 594 euros for dependent children.
CHILDREN
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300 euros for each child born, adopted or raised.
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246 Euros for multiple birth or adoption.
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246 or 303 euros for the birth or adoption of a child with a disability with a degree equal to or higher than 65%.
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330 or 660 Euros for extended families or single parent families.
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297 euros for the payment of kindergartens and centers of the first stage of Early Childhood Education for children under the age of three.
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460 euros for children aged three to five years to combine work with family life.
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110 Euros per child or minor in a permanent foster family.
FERTILITY
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100 Euros if you are between 40 and 45 years old and have had fertility treatment not covered by SSI.
DISABLED
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EUR 197 for persons with a disability greater than or equal to 33%, dependents aged 65 and over or dependents with a disability equal or greater than 65%.
WORK
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50% contributions for hiring indefinitely unemployed employees to take care of your children under the age of five with a limit of 1,100 Euros, or older dependents under your care, with a limit of 550 Euros.
MOBILITY
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10% if you buy an electric vehicle for your city trips, such as city bikes or electric personal mobility vehicles.
DONATIONS / CULTURE
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20% for the first 150 euros and 25% for the remainder for your donations for ecological purposes in favor of certain organizations for donations related to the Valencian cultural heritage or the promotion of the Valencian language.
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21% for the resources you dedicate for the acquisition of any cultural subscription, up to a maximum of 165 euros.
More than 80 million savings in the last campaign
Although they are still a great mystery to the majority, regional cuts personal income tax (IRPF) allowed it to save even more last year 80 million euros To Valencia Community taxpayers applying them according to the latest balance sheet provided by the Ministry of Finance and the Economic Model. There were 232,314 and the average deduction for each was 347 euros.
The most common of the 30+ regional outages available, rent, as long as it is habitual residence. An opportunity enjoyed by up to 66,052 taxpayers, thus saving an average of 540 euros in last year’s income.
The second most used deduction, birth, adoption or foster familybenefiting 36,745 people in all autonomy. Of course, in this case the amount is less, 182 euros per statement. Likewise, 29 thousand 399 taxpayers made a transfer for tax reduction. extended familyand taxpayers two or more grandchildren There were another 28,236 people.
Assistance set up by Consell to address the disadvantages and hardships suffered by residents. Municipalities at risk of population declineIt allowed 16,253 citizens to reduce their wages by an average of 325 euros.
What exists to compensate for the installation solar panels and other renewable energies, with 6,470 beneficiaries or those allowing cost deduction school supplies (6,689) was one of the most used according to the same sources.
If what is analyzed is the average amount of deductions, the largest amount corresponds to those that exist to encourage the discount. start-up investments, with the aim of promoting entrepreneurship. A possibility that will allow taxpayers who ticked the relevant box on their returns last year to save up to 2,186 euros.
This year’s Income campaign, where 2022 revenues are declared, will begin in 2020. 11 April, with the possibility of filing declarations online. The operation, which facilitates making presentations by telephone, will start from May 5, and the date of face-to-face service will be June 1st.
The campaign will end on June 27 for taxpayers whose payments have entered their residence, and generally on June 30.