As per our previous circular, we would like to remind you that starting as from 1.1.2025, there will be changing to the rules on IRPEF (Personal Income Tax) deductions for family loads, pursuant to Article 12 of the Consolidated Income Tax Act, in particular:

1. ABOLITION OF DEDUCTIONS FOR DEPENDENT CHILDREN OVER 30 YEARS OF AGE WHO ARE NOT DISABLED

It is established that IRPEF (Personal Income Tax) deductions for tax dependent children are due in relation to:

• children aged 21 or over but under 30 years old;
• each child aged equal to or over 30 years old, with a disability ascertained pursuant to Article 3 of Law no. 104 of 5.2.92.

Basically, IRPEF deductions for dependent children over 30 years of age who are not disabled are abolished, whereas previously there was no ‘maximum’ age limit. It remains that IRPEF deductions are not due for children under 21 years of age, as they have been replaced by the single and universal allowance (so called in Italian “Assegno Unico”) pursuant to Legislative Decree no. 230 of 29.12.2021. we remind that employees themselves must directly apply for Assegno Unico.

It is confirmed that the tax deduction, in compliance with the prescribed requirements, is also due in relation to children born out of wedlock that are recognised and to adopted, affiliated or fostered children.

Compared to the previous rules, the possibility of benefiting from the deduction is now also provided for the children of the deceased spouse only, provided they are cohabiting with the surviving spouse.

2. ABOLITION OF DEDUCTIONS FOR OTHER DEPENDENT FAMILY MEMBERS OTHER THAN COHABITING ASCENDANTS

It is established that IRPEF deductions for other tax dependent family members, i.e. other than spouses who are not legally and effectively separated and children, are only due in relation to each ascendant cohabiting with the taxpayer.

In practice, IRPEF deductions are abolished in relation to other family members who are not ascendants (ascendants being defined as parents or grandparents). Therefore, IRPEF deductions are abolished in relation to the following family members: legally and effectively separated spouse, brothers and sisters (also unilateral), sons-in-law and daughters-in-law, father-in-law and mother-in-law.

It also becomes indispensable that the ascendant cohabits with the taxpayer; previously, in fact, as an alternative to cohabitation, it was possible to prove that the family member received maintenance payments not resulting from court orders.

3. ABOLITION OF DEDUCTIONS FOR NON-EU CITIZENS WITH FAMILY MEMBERS ABROAD

Deductions for tax dependent family members are no longer due:

• to taxpayers with tax residence in Italy who are not Italian citizens or citizens of a European Union Member State or of a State party to the Agreement on the European Economic Area (Norway, Iceland and Liechtenstein);
• in relation to family members residing abroad.

We therefore invite you to inform us of any changes in the family members for whom you are currently entitled to deductions by completing the format “detrazioni 2025” (‘2025 deductions)’ (All. 1)  form attached hereto, even if you are no longer entitled to deductions for some of the family members who are in one of the situations described above, by informing us of the details of any family members for whom you are no longer entitled to tax deductions (e.g. children over 30 years old who are not disabled, other family members who are not cohabiting, family members residing abroad) as indicated above.

Please also complete the other forms “trattamento integrativo” (All. 2) and “ulteriore detrazione 2025” (‘supplementary treatment’ and ‘further deduction 2025’) (All. 3) if not already done.

In case of further news/clarifications please do not hesitate to contact us here