Declaration for the right to tax deductions for income and dependent family members

What is it?

Tax deductions are a tax benefit; they are amounts subtracted from the gross tax amount, calculated according to income brackets, and result in lower tax amounts due by the taxpayer.

Who is it aimed at?

It is aimed at the recipients of taxable benefits provided by INPS.

How does it work?

As a withholding agent, INPS allows for the deductions indicated below, among all types of deductions.

Deductions on income received as an employee or similar, or as a pensioner

• Persons receiving an income not exceeding € 50,000 as an employee or similar, or as a pensioner (as referred to in Article 13, Consolidated Income Tax Law) are entitled by right to the tax deductions;
• the amount of deductions is proportionate to the period of employment or pension in the year;
• benefit recipients who are interested in not having total or partial recognition of the deductions in question and/or in the application of a higher percentage are required to notify INPS every year.
  In the absence of an explicit communication, the Institute applies the rates according to income brackets and recognizes the tax deductions in relation to the amount of income paid and the number of days it is received.

Deductions for dependent family members at the request of the taxpayer

• These are related to the family condition of the person in question;
• they vary according to the composition of the family unit and the income received by each taxpayer (Article 12, Consolidated Income Tax Law);
• the amount of deductions is proportionate to the number of months in a year during which the family members were dependent and are applied from the month in which the conditions specified by the current legislation have occurred until the month they cease.
• Family members who receive an annual income of no more than € 2,840.51 are considered to be tax dependent.
  The limit is € 4,000 for children not older than 24 years of age;
• dependent family members are:
  • his/her spouse who is not legally and effectively separated;
  • children, including recognised natural children;
  • adopted or foster children;
  • other family members, provided that they co-live with the receiver of the benefit provided by INPS.

With effect from 1 March 2022, as a result of the introduction of the Single and Universal Allowance:

• deductions for dependent children are payable only if the child is 21 years of age or older;
• increases in tax deductions have been repealed for:
  • children under the age of three;
  • children with disabilities;
  • families with more than three dependent children;
  • large households in relation to the additional tax deduction of € 1,200 (Article 12, paragraph 1-bis).

The deduction is divided half and half between parents who are not legally and effectively separated or, subject to agreement between the parties, the whole deduction goes to the parent with the highest total income.

Citizens are obliged to inform the Institute of any relevant changes in dependent family members that may occur during the year, in order to allow for the adjustment of the tax regime applied to the benefits.

Claim

Users can request the tax deductions online, through the dedicated service, logging in with their own credentials.