Do you have children? How to file your tax return and what deductions are available
Understanding the rules is essential to ensure that the household takes full advantage of the tax mechanisms provided for by law, avoiding losses due to lack of knowledge or incorrect completion of the tax return.
Having dependents in the household not only affects personal and financial dynamics—it also has significant implications for income tax. Having dependents results in a set of tax deductions that directly reduce the tax owed, specifically the personal deduction for dependents. Understanding these rules is essential to ensure that the household fully benefits from the tax mechanisms provided by law, avoiding losses due to simple lack of knowledge or incorrect completion of the tax return.
The amount of the deduction varies depending on the number of dependents and their age, which is determined as of December 31 of the tax year in question. As a general rule, the deduction is 600 euros per dependent if the child is over three years old. If the dependent is three years old or younger as of December 31 of the tax year, the deduction is 726 euros.
For families with two or more dependents, the deduction is 900 euros for the second and subsequent dependents who are under six years of age as of December 31 of the tax year, regardless of the age of the first dependent.
In the case of dependents with disabilities, the deduction is significantly higher: 1,306.25 euros per dependent, provided there is a degree of permanent disability of 60% or more, as evidenced by a multi-purpose medical certificate of disability. These amounts apply to the 2025 income tax return, which will be filed in 2026.
Impact of the Tax Regime
The amounts indicated above are based on joint filing, a situation we consider to be the most common. However, there are other scenarios to consider, such as separate filing, whether by choice or as a result of a divorce; in the latter case, if there is an agreement regarding the exercise of parental responsibilities, and if this agreement establishes joint custody with alternating residence.
In the case of separate taxation, the deduction amounts are reduced by half, and dependents must be included on both tax returns. In the event of divorce or separation, where there is no alternating residence, the child will be a dependent of the parent with whom they reside, in which case the personal deduction for the dependent is allocated in full to that parent.
Conversely, for separated or divorced parents where there is an agreement regulating the exercise of parental responsibilities for the children and this agreement establishes joint custody with alternating residence for the minor, the deduction is split, with each parent receiving half.
Examples:
Married couple, filing jointly, with one dependent aged five: deduction of 600 euros
Married couple, filing jointly, with two dependents aged two and five: deduction of 1,626 euros (726 + 900)
Married couple, filing jointly, with three dependents aged nine, 11, and 15: deduction of 1,800 euros (600 + 600 + 600)
Married couple, filing jointly, with two dependents aged two and eight: deduction of 1,326 euros (726 + 600)
Couple, filing jointly, with two dependents aged five and nine, one of whom has a 72% disability rating: deduction of 2,206.25 euros (900 + 1,306.25)
It is important to note that tax deductions are subject to overall limits defined in the IRS Code, which vary depending on the household’s income level. Thus, the actual benefit may be less than the theoretical amount calculated and individually projected.
Correctly completing Form 3 is essential to ensure these deductions are applied.
The option for joint taxation is exercised by filling out field 1 of Table 5A. Conversely, if the couple chooses separate taxation, field 2 of Table 5A must be filled out, and the tax identification number of your spouse or domestic partner must be identified in field 3 of the same table.
Dependents must be listed in Table 6B, where the degree of disability must be indicated, if applicable. This table is also used to identify dependents under joint custody and to indicate whether or not there is alternating residence.
Tax deductions for dependents are an important mechanism for reducing income tax, reflecting the economic reality of families. Correct classification and completion of the tax return are essential to ensure full use of this tax benefit.
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