The Budget Law has introduced new rules for tax credits for dependent children. The tax credit is now only allowed for children under 30 years of age unless a disability has been certified.
The tax credit for dependent children is set at €950 for each child, including children born outside of marriage who are legally recognised, adopted children, foster children, affiliated children and children of a deceased spouse who live with the surviving spouse. This applies to children aged 21 or older but under 30, as well as to children aged 30 or older with a certified disability.
In addition, tax credits for dependents other than children are now limited to cohabiting ascendants (e.g., parents or grandparents). The tax credit amounts to €750 per cohabiting ascendant and must be shared proportionally among eligible taxpayers.
Lastly, taxpayers who are not Italian citizens, EU citizens or citizens of a country in the European Economic Area are no longer eligible for dependent tax credits for family members residing abroad.
Please also remember that the universal allowance replaces tax credits for children under 21 years of age.
