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The rules for calculating dependent children are changing

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In 2022 they are radical Change the rules To determine Discounts for dependent children. Indeed, from March 1, 2022, a universal individual allowance appeared for the first time that almost entirely included deductions for dependent children, as well as other forms of support for families such as family allowance, maternity allowance, and allowance for those with three minor children.

the IRPEF deductions For dependent children remained valid only because I Children 21 years of age or older.

All of this, therefore, has important implications for compiling your 2023 tax return and, in particular, for what is important here, on Form 730/2023.

Let’s try to summarize the new features with some example compilation of the model.

Deductions for dependent children on Form 730/2023

Effective March 1, 2022, the rules for determining IRPEF deductions for dependent children have changed.

desire to summarize, from this date:

– Only the discount that equals is valid 950 euros per childincluding recognized children born out of wedlock or children adopted or fostered, provided Is 21 years of age or older; This discount is due from the month of the child’s 21st birthday.

– the rule according to which the deduction is due for the part corresponding to the proportion between the amount of €95,000, reduced from the gross income, and €95,000, confirmed;

– also confirms the rule according to which in the presence of several children who are given the right to a deduction, the amount of 95,000 euros for all is increased by 15,000 euros for each child after the first.

Therefore, the application formula To determine the discount as follows:

950 x (95,000 – total income) / 95,000

Where, for each child more than the first, the sum of 95,000 in the numerator and denominator is increased by 15,000.

With regard to the rules regarding distribution, those previously in force apply, as well as for the income limit considered to be tax-dependent in the amount of 2840.51 euros (4000 euros for children under 24).

Instead of that , disappear:

– The discount has been increased to 1,220 euros per child under the age of three;

– increases of 400 euros per disabled child and 200 euros per child starting from the first for taxpayers with more than three dependent children;

Additional discount of 1,200 euros for large families.

It should be noted that, as indicated by the Revenue Agency in the circular issued on February 18, 2022, n. 4/E, to recognize the above deductions for the first two months of 2022 Children born in the period from March to December 2022.

Further, in the same circular, it is specified that the first child of 21 years of age or older may be granted the spouse’s perceived deduction – if it is more favorable than the conceived deductions for dependent children – in the event of the loss or absence of the other parent. Natural children of the taxpayer shall be recognized as unmarried, or, if married, subsequently legally and effectively separated, or if there are adopted, trusty, or affiliated children of the taxpayer alone and he is not married, or, if married, then legally and effectively separated.

How to fill out Form 730/2023

To account for the changes, the 2023/730 model section is dedicated to family loads It has been revised.

In particular, the changes are as follows:

– In the Column 6 Only children under 3 are specified in the app January and February months;

– The column “No. Months deduct children” into two sub-columns to indicate the months of The period from January to February (Column 9) and those From March onwardsIntended only for children 21 and over (Column 10).

730_Loads_1

Calculations by the person providing the tax assistance

The person providing tax assistance must:

– Determine the amount Discounts due for this period From January 1, 2022 to February 28, 2022 According to the old rules;

– application New laws to determine the quantity Discounts due for this period From March 1, 2022 to December 31, 2022.

As usual, once the calculations are made, any deductions owed should be reported on lines 22 and 23 of Form 730-3.

Download 730

An example of aggregation

Suppose the case of a taxpayer who, in 2022, had the following familial status:

– the first dependent child of 23 years of age: entitled to a deduction for a period of 12 months;

– Second dependent child under the age of 17: eligible for the discount only for the months of January and February.

Assemble the form as follows:

730_Loads_3

So those who provide tax assistance should take into account the following theoretical deductions:

– First child discount = € 158 (January-February) + € 792 (March-December) = € 950

– Second child discount = 158 € (January – February)

Obviously, these are theoretical deductions that must be compared to gross income to determine the coefficient due, and therefore the amount that should be indicated on line 22 of Form 730-3.

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