Do I have to include the Social Security Pension in my Income Tax Return?

At this time of year, the same question always arises: do I have to include the Social Security pension in my income tax return? And it is even worse if it is not your income, but that of your father, or your grandfather, or a neighbour... because if you make a mistake, the level of dissatisfaction of both sides will be much higher than the level of gratitude for having got into the problem of doing the income tax return.

In order to avoid this, we will try to make it clear which pensions are to be included in the income tax return and which are not. To begin with, it should be made clear that pensions are taxed as income from work, and as such, they are all taxed, except for those that are exempt. Well, what a truism. Say another one and you hide", you may say, but if you read it again, you will see that I am making it clear that pensions are taxed, except for those I am going to tell you about below, so if yours is on the list below, you will not have to include it, but if it is not, you have to include it, and so there is no doubt as to whether mine, which is not there, is not there because you do not pay or because you have forgotten about it. So let's get on with it. The following pensions are excluded from Personal Income Tax (IRPF):

The economic benefits recognised by the Social Security:

As a consequence of Absolute Permanent Disability or Great Disability.
Family benefits rmaternity, and pensions and passive assets in favour of grandchildren and siblings who are incapacitated for all work.
Pensions which, in situations identical to the above, are granted to professionals who are not included in the special Social Security scheme for self-employed workers or self-employed workers by the mutual benefit societies which act as alternatives to the aforementioned special Social Security scheme. It should also be borne in mind that the exempt amount is limited to the amount of the maximum benefit recognised by the Social Security for the corresponding concept. The excess will be taxed as earned income.
Pensions for disability or permanent incapacity under the public Social Security and Pension Schemes, provided that the injury or illness which was the cause of the same completely disqualifies the recipient of the pension from any profession or trade, and those also paid by the public Social Security and Pension Schemes in favour of grandchildren and siblings under 22 years of age or disabled for any work.
Pensions paid to persons injured or mutilated during the Civil War (1936/1939) under the State Pensioners' Pension Scheme or under specific legislation.
The amounts received from public institutions on the occasion of the fostering of disabled persons, in simple, permanent or pre-adoptive form, or the equivalent amounts provided for in the regulations of the Autonomous Regions.
Financial aid granted by public institutions to persons with a degree of disability equal to or greater than 65% to finance their stay in residences or day centres, provided that the rest of their income does not exceed double the public income indicator for multiple effects (IPREM for 2016: 7,455.14 euros. LIMIT: 14,910.28 euros).
Unemployment benefits when they are received in the form of a single payment, whatever the amount, by disabled workers who become self-employed, whatever the amount.
Income from work derived from benefits obtained in the form of income by disabled persons corresponding to contributions to the special social welfare system set up in their favour. Income from work derived from contributions to protected estates of people with disabilities is also exempt. The annual limit (up to 31-12-2014) of this exemption is 3 times the IPREM. (IPREM for 2016: 7,455.14 euros. LIMIT: 22,365.42 euros). From 1 January 2015 this exemption limit will be joint and will be applied individually and separately for each of the two previous incomes. (art 7.w Personal Income Tax Act).
Public economic benefits linked to the service, for care in the family environment and personalised assistance deriving from the Law for the promotion of personal autonomy and care in a situation of dependency.