Incredible as it may seem, the Income from the Income and the Minimum Vital Income (IMV) are related. The IMV is a Social Security benefit aimed at people at risk of poverty and social exclusion. Whether they live alone or are integrated into a coexistence unit and lack basic financial resources to cover their basic needs.
The amount of the aid varies according to the member recipients. In 2023, the guaranteed minimum income ranges from 565.37 euros per month -for an individual beneficiary- and up to 1,368.21 euros per month -in the case of a single-parent cohabitation unit made up of one adult and four or more minors-. In addition, a monthly child support supplement is recognized for each minor member of the cohabitation unit.
At the fiscal level, it is one more income that we must take into account when paying the Personal Income Tax (IRPF), although its treatment is special due to its protective nature to guarantee a minimum level of income against to situations of vulnerability.
The Minimum Vital Income is a tax-exempt income
Thus, the IMV is an exempt income and the vast majority of beneficiaries will not have to include it in their declaration. The Tax Agency specifies that the amounts that exceed 12,159.42 euros -1.5 times the Public Indicator of Multiple Effects Income (IPREM)- must be declared as work performance. In the event that, together with the IMV, other aid is received for groups at risk of social exclusion such as the minimum income for insertion, guaranteed income and other similar public aid, only this excess must be declared and paid.
In addition, the Minimum Vital Income does not generate by itself the right to deduction for maternity, nor to deductions for large families or dependents with disabilities.
Obligation to declare in the 2022 Income statement
Despite the exemption from the income that the IMV implies, the beneficiaries will have the obligation to present the declaration regardless of the norms of their income, without taking into account the limits. This is an obligation that will be maintained each year in which the taxpayer has been a beneficiary of this Social Security aid.
The Tax Agency explains that, in general, the declaration will be “simple, without income to incorporate”. If the taxpayer has not obtained any other income, the boxes of the declaration will appear with zero import. For this reason, it is common for the result of the Income statement to be zero -neither to pay nor to return-.
Information dumped in the draft
Taxpayers who are beneficiaries of the Minimum Vital Income will be able to see this income and reflected in their draft. The Tax Agency itself offers, through the RentaWEB service, a draft as a simulator with the data that the Treasury has on each taxpayer. In this way, the taxpayer only has to upload the information to Renta WEB and confirm the statement. However, it is always advisable to review all the data before delivering it.
It must be taken into account whether the beneficiaries are a person or a family unit. In the latter case, the tax data will already include the proportional part of the IMV that corresponds to each member of the coexistence unit.
In addition, minors must submit the declaration individually or jointly with the family unit. It is not enough to appear in the individual declaration of the parent as a descendant. For the cases of beneficiary families with children, the Tax Agency recommends filing the joint return and, if they are not married, that one of the parents include the children.
The 2022 Income Campaign begins on April 11. As of that day, taxpayers will be able to file the declaration through the Internet. As of May 5, the Treasury offers the possibility of preparing the declaration by phone, while face-to-face appointments will only be available for one month. In both cases, an appointment must be made.
