Starting from 2025, Italy's new tax regulations related to dependent deductions have undergone significant changes, reshaping how families may claim these deductions. The adjustments, introduced by the Legge di Bilancio 2025, will particularly affect public employees whose payroll is managed via the NoiPA system.
The reforms have implemented stricter qualifications for dependent deductions, particularly impacting families with children aged over 21. Prior to this change, any child over 21 was eligible to be claimed as dependent for tax purposes. The new law restricts this benefit to children aged between 21 and 30, with children over 30 only eligible for the deduction if they have proven disabilities. Under these rules, eligible families can claim up to €950 per qualifying child.
According to the revised legislation, only ascending relatives, such as parents and grandparents, may be considered dependents beyond this age limit, with the deduction for these family members now set at €750. Previously, it encompassed all cohabitating relatives, including siblings and children-in-law, making the new rules considerably more stringent.
Included within the new guidelines is the stipulation to exclude foreign residents from tax deductions. Family members who live abroad and are not EU citizens or from countries within the European Economic Area will not be eligible for these tax benefits. This change reflects the broader trend of tightening tax regulations to align with the government's fiscal strategy.
The INPS (Istituto Nazionale della Previdenza Sociale) has announced modifications to its Unificated Deductions service, reflecting these new regulations. For children who have turned 30 and do not have disabilities, their tax deductions have been eliminated altogether. Importantly, those who are citizens of nations with agreements ensuring adequate exchanges of information with Italy will continue to have access to these tax benefits.
Public employees are required to utilize the updated NoiPA self-service platform, which now facilitates the management of family members for tax deduction purposes. All users must re-enter their family member details before the deadlines set by the Ministry of Economy, even if there have been no changes to their previous situations. Failure to do so may result in the automatic removal of deductions or necessitate subsequent recalculations on their payroll.
The adjustments to the tax deduction structure, particularly those impacting families with dependents, denote Italy's effort to stabilize its economy through fiscal restructuring. While aimed at streamlining tax processes, the changes also highlight the delicate balance between regulation and support for families, prompting debates surrounding the welfare of dependents beyond the age of 21.
Families with older children may find these changes restrictive, particularly those with children returning to education or seeking employment later than at 21. This law may inadvertently complicate financial support strategies for families as they navigate the obligations of caring for adult children.
Those affected are urged to familiarize themselves with the new tax framework, especially public employees, who now face more complex processes for securing dependent deductions. With the adjustments now implemented, it is imperative for families to act swiftly to update their relevant information to continue benefitting from the tax relief.
The Ministry of Economy is expected to follow up with additional guidelines and clarification on the operational changes and practical impacts these tax reforms may bring. The greater challenge, perhaps, lies not only in adapting to these new regulations but also in managing the broader economic needs of families within Italy—where many still struggle with fluctuated employment and post-pandemic recovery.