Maternity, paternity… and that great little breather that the Tax Agency does want to give you (even if it’s hard to see sometimes)

If you have children under 3 years old, you surely know this better than anyone: life changes completely. Schedules change, priorities change, emotions change —which suddenly seem to multiply— and, of course, the numbers in your bank account change. Between diapers, clothes that are too small almost before they’re even worn, daycare, food… expenses grow like your little one: quickly, without warning, and non-stop.

And we want to tell you something from the heart: it’s okay to feel like you need a little help. All families go through it.
And that’s what we’re here for. To support you. So you don’t have to decipher a regulation on your own that sometimes seems to be written in another language.

Because one of the most valuable —and most unknown— forms of assistance is the maternity or paternity deduction. Real, concrete help that can give you a financial break in the early years of raising your child.

Today we want to explain it to you clearly, closely, and without technicalities. One-on-one. As we would if we were sitting with you in your kitchen with a coffee.

What exactly is this deduction?

This is a deduction on your personal income tax (IRPF) that can be up to €1,200 per year for each child under 3 years of age, whether by birth or adoption. It is regulated in Article 81 of the IRPF Law, but you don’t need to memorize legal references: that’s what we’re here for.

The important thing is this: You can collect it in two ways:

• Month by month, €100 direct to your account via Form 140, or
• All at once in the Income Tax Return.

You choose the option that best suits your needs.

And here’s something we love to point out because many families don’t know it:

There is also a supplement for nursery school that can add up to an extra €1,000.

That is: €1,200 + €1,000 = up to €2,200 per child if your little one goes to an authorized center.

Many people miss out on applying for it… and we don’t want that to happen to you.

Who can benefit? We’ll clarify it without beating around the bush

To receive this deduction, you must meet certain requirements. Here’s a simple summary:

• Working mothers: It doesn’t matter if you are employed or self-employed.
• Registered with Social Security or a mutual society: Always within the corresponding scheme.
• Children under 3 years of age: And who live with you.
• Fathers or guardians: They can also apply for it in specific cases:

• death of the mother,
• sole custody,
• same-sex families.

Don’t worry if any of these situations raise questions for you: we’ll resolve them with you, case by case.

How much money do you really get? Let’s go through it step by step

The general deduction is €1,200 per year, but there will be years when you can receive more thanks to the nursery supplement.

This supplement —of up to €1,000— only applies in the Income Tax Return. In other words, it is not collected month by month, but it does reduce your final result.

And yes, it’s well worth checking if you’re entitled to it, because thousands of families are missing out on applying simply because they don’t know about it.

Our job is to prevent that from happening to you.

Two ways to collect the deduction: you choose the one that suits you best

1. Monthly advance (Form 140)

You receive €100 per month in your account.

Perfect for balancing day-to-day expenses.

2. Apply it in the Income Tax Return

If you did not request the advance, the Tax Agency deducts the deduction when you file the return.

Ideal if you prefer a higher lump-sum refund.

From our experience, the best option depends on your current financial situation. That’s why we always offer you a personalized recommendation.

What if I’m unemployed… do I lose the deduction? Here’s some good news

For years, many people believed that maternity in a situation of unemployment did not entitle them to the deduction.

But the regulations changed. And they changed in your favor.

Today, the following can receive the €1,200:

• women who were receiving benefits or subsidies when their child was born,
• and mothers who, after having a child, joined the labor market and contributed for at least 30 days.

An important detail: Many draft Income Tax Returns still do not reflect this change.

That’s why it’s key to review it carefully… and that’s where we support you.

Can I claim for previous years? Yes. And it can mean a lot of money

If you did not apply for the deduction or did not know you were entitled to it, you are still in time.

You can claim up to four tax years back by means of a rectification.
Four years.

Imagine what that could mean for your family finances.
We can manage that review with you, step by step.

What about fathers? Can they apply for the deduction?

The general rule assigns it to the working mother, but there are situations in which the father or the other parent can (and should) apply for it:

• Death of the mother
• Sole custody granted by judgment
• Same-sex couples

The only invariable condition: The deduction cannot be collected twice.

And now for the most important thing: you don’t have to do this alone

We know that motherhood and fatherhood are, in themselves, a whole world.
We know that sleep is scarce, that routines change, that priorities are rearranged.

We know that your energy is focused where it should be: on caring, on supporting, on raising, on loving.

Because we want to take care of you while you take care of your family

We want you to feel that here you have a team that listens to you, that explains things to you without rushing, that represents you and that looks after your interests.
That reviews your case, identifies opportunities, avoids mistakes and makes sure you receive everything you are entitled to.

You are not alone.

We are here to help you, support you, and simplify your life. If you would like us to review your case without obligation, contact us.

** Images licensed from Envato Elements.