Understanding the tax relief for large families and how to claim it
If you belong to a large family, you know how bills can multiply quickly. So any discount or exclusive service, as well as any social benefit or tax deduction, is welcome. In this context, the Agencia Tributaria (AEAT) allows families formed by one or two adults with three or more dependent children to receive a tax credit of 1,200 euros in the income tax return. This amount can double to 2,400 euros under certain conditions. Here are the requirements and how to apply.
The measures in place also extend to single-parent families with two children, who can claim this wage-related aid since the family policy law came into effect. This law not only creates new leave rights for child and relative care but also broadens the concept of a large family.
When the credit can double to 2,400 euros
The AEAT’s official guidance states that the maximum amount for this aid is 1,200 euros for regular large families, meaning families with three children or two children if one child has a disability.
The amount can increase by 100 percent, up to 2,400 euros, when those households have five or more members and meet the special category criteria.
Additionally, the tax authority now allows the benefit to be shared among filers within the same family, though it will be prorated. On the downside, this deduction is incompatible with the deduction for a parent living apart or in a non-marital union with two children up to 25 years old.
How to apply
On the AEAT website, all steps to qualify for this deduction are explained. The process is as follows:
- Submit the draft income tax return within the yearly deadline.
- If the result is positive, subtract the deduction amount and request a refund of the difference.
- If the result is negative or zero, simply request a refund of the amount.
- Taxpayers who are not required to file income tax must do so and continue with the process.
The tax agency also allows applicants to request an advance payment using form 143. If granted, the beneficiary receives the compensation in monthly installments (100 euros each month) rather than a single payment.