Child Tax Deductions with Single Allowance, Instructions for 2024 Tax Return

Understanding Child Tax Deductions in 730/2024 Declarations

When a child turns 21 during the year 2023, a double calculation is required to claim tax deductions for dependent children in the 730/2024 tax return.
This stems from the introduction of the single child allowance, which maintains tax deductions for dependent children only once they reach 21 years of age and are no longer eligible for the monthly parental support provided by INPS.

Navigating the 730 Form: Calculating Child Tax Credits

The 730 form includes different columns: one for total months of dependency, one with the percentage of dependency, and one for months of dependency for children who have turned 21.

The introduction of the single child allowance has significantly altered the economic support system for families.
As a result, certain benefits have been eliminated, such as the additional €200 per child for families with more than three children, the extra deduction of €1,200 for families with more than four children, and additional deductions for children under three years old, children with disabilities, or taxpayers with more than three children.

However, the 730/2024 model still allows for claiming deductions for children over 21 by filling out column 10.

According to the tax code, children under 21 who are still “fiscally dependent” are entitled to deductions and allowances for expenses incurred on their behalf, as well as corporate welfare initiatives.

Claiming Family Tax Credits in the 730 Form

Regarding family tax credits, it is important to note that these deductions are calculated on a monthly basis, starting from the month the conditions were met until the conditions ceased.

While the additional deduction for large families (those with at least four dependent children) has expired, it could still be applied until February 28, 2022.
In cases where the gross tax is lower than the entitled deductions, taxpayers with at least four dependent children were eligible for a credit equal to the unused deduction.

When filling out the section for dependents in the 730 form, children should be listed in rows 2 to 5 based on age and dependency status.
Specific instructions must be followed regarding the indication of each child and their respective tax implications.

Understanding and correctly applying these rules is crucial for maximizing tax benefits and ensuring compliance with regulations.