Family Tax Deductions: Are They Only Valid for Cohabiting Couples?

Are Dependents’ Deductions Conditioned by Living Together?

The condition for claiming the deduction is the tax burden, namely that the dependent has incomes below a certain threshold.
Coexistence between the beneficiary of the deduction and the dependent is only required in some cases.

The tax legislation recognizes various benefits aimed at protecting the family.
Specific tax deductions have been introduced for the taxpayer with dependents to reduce the due income tax (Irpef).

However, not all family dependents have the same deductions.
The amount and conditions to benefit from them vary depending on the type of dependent.

Family Dependents, Which Relatives Are Eligible?

The relatives considered dependents for whom deductions are due are listed in Article 433 of the Civil Code.
Specifically, deductions apply to:
– spouse;
– children;
– parents;
– siblings;
– parents-in-law, sons-in-law, and daughters-in-law.

The entitlement criteria vary according to the type of relative, as does the theoretical amount due.

How Much Can You Deduct for Family Dependents?

Deductions are granted when a family member is fiscally dependent on the taxpayer.
To be fiscally dependent, the family member’s annual income must not exceed €2,840.51.
There is a different rule for children, with the limit of €2,840.51 applying only to children over 24 years old.
For children under 24, the limit to be considered dependent is increased to €4,000.

Currently, there are three main deductions for family dependents:
– deductions for dependent children, applicable only to those not receiving the unique allowance (at least 21 years old);
– deductions for a dependent spouse;
– deductions for other dependent relatives.

The maximum amounts are €950 for children, €800 for a dependent spouse, and €750 for other dependent relatives.
However, these amounts are theoretical and decrease with higher incomes.
The actual deduction depends on the taxpayer’s annual income.

Are Cohabitation Requirements Necessary for Deductions?

The eligibility for deductions is not universally conditioned by cohabitation with the dependent.
The requirement varies depending on the type of family member for whom the tax benefit is claimed.

For children and a dependent spouse, cohabitation with the taxpayer is not necessary.
The deductions are applicable even if they have a different residence or live abroad.

For other dependents, cohabitation with the taxpayer is required.
Alternatively, if cohabitation is lacking, the dependent relative must receive alimony not resulting from a judicial decision, as established by Article 12, paragraph 1, letter d) of the TUIR.