How long are children considered dependents for tax purposes?

How Long Are Children Considered Dependents?

One of the common questions that many parents with adult children ask themselves is how long they can still benefit from having their children as dependents, both in terms of tax deductions and financial support.
In a time when finding a job is increasingly challenging, it is not uncommon to come across adult children who still live with their parents and rely on them for support.

When we talk about a “dependent child,” we can refer to two different concepts: one related to tax benefits and deductions, and the other related to the obligation to support a child until they achieve financial independence.

Support Obligations for Children

Parents are always responsible for providing for the maintenance and needs of a minor child.
However, when it comes to adult children, there are different scenarios to consider:

• Adult child with a severe disability
• Adult child who is not self-sufficient

For an adult child with a severe disability, certified under Law 104 with article 3, paragraph 3, the obligation of financial support is lifelong.
On the other hand, for an adult child who is not financially independent, the parent must provide support until they find employment.

An adult child is considered financially independent as soon as they secure a job, even if it is part-time or temporary, as long as it is not short-term employment.

The parent is required to support the adult child who is not yet financially independent, as long as the young person is either actively pursuing education or making genuine efforts to find employment.

According to a previous ruling by the Court of Cassation, a child who reaches the age of 30-35 without achieving financial independence may lose the right to parental support as the lack of employment is seen as voluntary inaction.

Fiscal Dependence of Children

The fiscal dependence of children is based on the income they earn.
A child is considered fiscally dependent if:

• They are under 24 years old and earn no more than 4,000 euros per year
• They are over 24 years old and earn no more than 2,840.51 euros per year

It’s important to distinguish between being a fiscally dependent child and being a beneficiary of a unique allowance.
While fiscal dependence is determined by the child’s annual income, the unique allowance is granted based on specific criteria such as age, education, and employment status.

Children, as long as they meet the income thresholds described, can remain dependent on their parents regardless of age.
There is no specific age limit for a child to be considered fiscally dependent, as long as they fall within the income limits set by the regulations.

In conclusion, the relationship between parents and children as dependents is not solely based on age or living arrangements but is primarily influenced by financial factors and the child’s specific circumstances.