The campaign of the income tax return The 2025 fiscal year began this Wednesday, April 8, with a novelty that affects millions of taxpayers and that many will overlook if they do not actively request it. This is a new deduction of up to 340 euros in personal income tax for workers who received the Minimum Interprofessional Wage or gross income of less than 18,276 euros per year during the last year. The measure, collected in the sixty-first additional provision of the Personal Income Tax Lawwas born as an intermediate solution after the dispute between the ministries of Finance and Labor regarding the taxation of the SMI. The first wanted it to be taxed, the second did not, and the result was this deduction that offsets the tax burden of those who earn the minimum wage.
But the deduction has a catch. It is not applied automatically in the draft, and anyone who does not claim it will lose the money. Tax advisor José Ramón López, known on social networks as ‘Your tax blog’, warns about this in a video published on his TikTok account where he openly criticizes this situation and explains step by step how to apply it.
“It is quite ridiculous that the new deduction of 340 euros, which is new this year and which affects millions of people, is not applied by default in your income tax return when the Treasury has all your data to enter it by default,” the advisor denounces.
Who does it affect and why does it affect millions of people?
López explains that the scope of this deduction is broader than it seems, “because it is simply for having obtained income from work, that is, for having worked.” Specifically, all taxpayers whose total income from work is equal to or less than 18,276 euros gross per year can benefit, provided that they do not have other income (excluding exempt income) greater than 6,500 euros per year and that said income comes from an employment or statutory relationship.
The amount is not the same for everyone. Those who perceived the SMI of 2025 (set at 16,576 euros gross per year) the full 340 euros will be deducted. From that figure and up to 18,276 euros, the deduction is reduced as income increases. “The deduction decreases as you approach that maximum amount of 18,276 euros,” López clarifies. In the example shown in his video, the resulting deduction is 255.20 euros, precisely because his returns are above the SMI but below the limit.
How to apply it step by step in the draft
The expert details the exact route within the draft of the Tax Agency. “In the draft you will find it in the general deductions section and then in the deduction for obtaining income from work,” he indicates. Once inside this section, the system requires the taxpayer to manually fill out a series of fields with the income obtained from work, the applicable reductions and whether Social Security contributions have been made.
It is at that point where López launches his most direct criticism. “I insist, that you have to fill this out, it seems absurd to me because the Treasury already has this data,” says the advisor. Once the information has been entered, the deduction is automatically reflected in the deductions section of the liquid contribution under the concept “deduction for obtaining work income.”
And an important nuance that many may overlook. Not all beneficiaries will see the full 340 euros in their declaration. The calculation formula reduces the deduction progressively between 16,576 and 18,276 euros of income, so that only those who collected the SMI or below will receive the full amount of 340 euros, and the amount is reduced until it disappears right at the ceiling of 18,276 euros.