Allocation between the parents of the tax benefits accruing to the family

From tax deductions for dependent children, deductions for medical expenses, education, and other charges and expenses incurred by parents for their children: we see the mode of apportionment between the two parents of the tax benefits accruing to the family. Especially the rules of distribution in the event of separation of the spouses, unmarried parents or spouse missing.

Italian families entitled to some tax benefits with respect to taxes on income payable annually. The tax on personal income (personal income tax) is calculated on the income of the taxpayer and, in its method of calculation takes into account the family situation, income of the worker and also of certain charges and expenses incurred for himself and his family, subject to tax deductions.

Therefore, workers, parents, taxpayers for income tax, is entitled to tax deductions related to dependent family members, especially relating to their dependent children (The condition of dependent family is related to the non-possession of an income in excess of € 2840.52) . There is a tax deduction, of course, dependent child but there are also deductions due to several charges and expenses incurred, generally indicated as part of the E 730 form, for example. These are the deductions for medical expenses, for rent, for education, etc.. All these costs if incurred for dependent family members (in this case children) shall entitle the parents to the use of deductions.

So for dependent children, the parents are entitled to the deduction for dependent children, to tax deductions for charges and expenses. The question arises as to divide between the two parents tax deductions related to their children, it is possible that both are taxed as personal income of owners of taxable income (eg income from employment or self-employed). The question becomes particularly important in cases such as legal separation between spouses or even cases of parenting without being married.

In these cases, the deduction main object of regulation regarding the mode of apportionment between parents, is the deduction for dependent children. With the law of 2013, the amount of deductions Stability theoretical (Article 12 of the Tax Code) has been increased:

 950 euro for each child dependents for tax purposes (in 2012 it was 800 euro);

 € 1,220 for each child under the age of three years (in 2012 it was 900 euro);

 Increase of € 400 for each child with a disability under the Act 104 of 1992 (until 2012 the amount was 220 EUR);

 Increase of € 200 for each child from the first, for taxpayers with more than 3 dependent children (this amount is the same as in 2012, no increase).

These amounts are only theoretical, for the actual amount of the deduction due to the parents must relate the amounts to their income, according to the provisions of the Income Tax Code, ie to consider the income owned by the taxpayer applicant and relate them to the parameters established by the Tax Code. For further information on the calculation see the deduction for dependent children.

The deduction for dependent children, just mentioned, it is regardless of the age of the child and from living with parents and whether the fact that the child has a disability.

The question arises concerning the allocation between the parents of this tax deduction due for the children, but also for other deductions for charges and expenses. And that in various cases, such as the case of married spouses, parents are not married, the case of the separation of parents. The Income Tax Code relating to deductions for dependent children discipline precisely these cases. Let's see them all.

SUMMARY:

Deduction for dependent children married and not separated spouses

Deduction dependent children in case of separation

Unmarried parents

Fiscally dependent spouse or missing

Deductions for charges and expenses

 

Breakdown of the deduction for dependent children of parents not legally and effectively separated

The deduction for dependent children is shared by 50 percent between parents and actually not legally separated or, by agreement between them, it is up to the parent who has a higher amount of total income. Thus the amount of the deduction theory, with any increases for children with disabilities or the presence of more than three children, to be divided equally between the parents.

The theoretical deduction and the allocation of 50%. Clear that the theoretical deduction may be spread to 50%, the Inland Revenue has clarified that the distribution can also be done on the final result of the deduction calculated using the formulas provided by the Tax Code, in relation to the income of each spouse.

Derogation to avoid cases of insufficiency. As a rule, then 50% each, but may be waived in favor of the spouse with the higher income, with an agreement between the parents. This derogation in favor of the spouse with the higher income has been introduced in art. 12 of the Tax Code, in order to avoid cases of insufficiency of the tax payable by a parent. That is the case where the parent recipient of 50% of the deduction should not have to pay a personal income tax that they can qualify for the deduction.

Through the provision of this agreement, the legislature intended, in principle, to avoid that, because dell'incapienza tax payable by one of the parents, the family loses all or part of the tax benefit provided for the children to load. It is possible, however, to proceed with the agreement even in the absence of such a state of "insufficiency" as the norm, to allow the attribution of the entire deduction to the parent with the highest income, there is express reference.

Recall that tax deductions fell the gross tax payable, but if the tax calculated is lower than the deduction for dependent children are entitled, then it is the case dell'incapienza. And the consequent loss of the deduction. In this case, however, the legislature allows you to transfer to your spouse 50% of the deduction for dependent children, in order to allow a tax savings to your spouse, and then to the household.

Breakdown of the deduction of all children. It has also been clarified by the Ministerial Circular 20 / E of 13 May 2011, that any allocation of the deduction to the parent with higher income should necessarily affect all children of the same parents and only in the presence of children born not from the same parents deduction can be applied in varying degrees.

The form of the agreement for the deduction to the spouse with the higher income. The circular no. 15 / It has specified that does not require any particular form. However, if requested by the tax authorities, then an office of the Revenue, however, parents must provide proof of the agreement under which they have taken advantage of the deduction to the extent agreed, or in favor of the spouse with the higher income.

Parents separated and allocation of deductions for dependent children

And 'one of the most frequent cases, namely the case of legal separation, ordered by the judge. Tax deductions for dependent children in case of separation follow some rules established by the Consolidated Income taxes (Tax Code), which provides precisely the case of separation.

Article. 12 of the Tax Code, in regard to the allocation of deductions for dependent children in case of separation, provides:

 "In the event of legal and effective separation or annulment, dissolution or termination of the civil effects of marriage, the deduction is, in the absence of agreement, the custodial parent."

 "In the case of joint custody or shared the deduction is shared, in the absence of agreement, to the extent of 50 per cent between the parents."

 "Where the custodial parent or, in the case of joint custody, one of the foster parents can not claim all or part of the deduction for income limits (insufficiency), the deduction is allocated in full to the second parent. The latter, unless otherwise agreed between the parties, must remit to the other custodial parent an amount equal to the entire deduction or, in the case of joint custody, accounting for 50 percent of the deduction itself. "

On the basis of this tax law, the Internal Revenue Service has provided a set of rules for the allocation of the deduction between the parents effectively and legally separated, especially regarding the case dell'incapienza and agreements between the parties for the use of the deduction. For more information see the deduction for dependent children in case of separation.

Deductions for dependent children in the case of unmarried parents

This is the case, more and more frequent, the de facto families, with children and the parents are not married, cohabiting or not cohabiting. Also in this case both parents entitled to tax deductions for dependent children in art. 12 of the Tax Code. The question arises regarding the distribution being neither married nor separated.

The law n. 54 of 2006, which governs the provisions relating to parental separation and shared custody of their children, provides for art. 4, paragraph 2: "The provisions of this Act shall also apply in the event of dissolution, termination or invalidity of the civil effects of marriage, as well as the proceedings relating to the children of unmarried parents."

Therefore, as also pointed out by the Inland Revenue with the Ministerial Circular no. 15 / E of 2007, in the case of children of unmarried parents, to deductions for dependent children, are subject to the same provisions as in the case of separated parents, which we discussed earlier, if there are measures relating to custody sons. In the absence of measures, the deduction must be apportioned 50% between the two parents. Again agreement can be reached between the parties to allocate the deduction to the parent with the highest income.

So basically the two unmarried parents are treated as separated parents. That is, as required by the Tax Code, the division is up by 50% for each parent (equating to joint custody or shared). In the separation is established that in the absence of agreement, the deduction is the custodial parent.

In this case there is a "lite" on the children by parents not married, but they're still apply the rules relating to the achievement of an agreement between the parties for the use of the deduction for dependent children, then parents must whether to stay with the deduction for dependent children divided at 50% each or entrust the use of the 100% tax deduction to the parent with the highest income or incapiente (ie the parent who does not produce an income that have of opportunities to reduce their tax personal income tax to be paid with tax deductions, in this case for dependent children).

It is therefore to reach an agreement between the parties to the fruition of the best deductions for dependent children, to prevent insufficiency is lost for the tax break. In the case of disputes between the parties, also for spouses not married, are subject to the rules relating to cases of separation, then the procedure for all'incapienza and agreement. For more information see ledetrazioni tax for dependent children in case of separation.

Fiscally dependent spouse or missing: the rules for the allocation

Article. 12 governing tax deductions for dependents provides that "in case of fiscally dependent on the other spouse, the deduction (for dependent children) competes in the latter for the full amount." So the tax relief regarding the deductible for income tax expenses are allocated to the spouse taxpayer who has paid the other spouse. So the taxpayer is entitled to deductions for dependent spouse, dependent children and those for the other deductions for charges and expenses, being the only parent who is the recipient of a taxable income for income tax.

The case of the missing parent and the deduction for a dependent spouse. Always the art. 12 of the Tax Code provides that "if the other parent is missing or not recognized natural children and the taxpayer is not married or, if married, has subsequently legally and actually separated, or if there are foster children, custody or affiliates of only taxpayer and he is not married or, if married, it subsequently separated legally and actually, for the first child shall, if more convenient, the deductions referred to in subparagraph a) of Art. 12 or deductions for dependent spouse. "

So in fact the first dependent child is treated, for tax purposes, the spouse is missing, getting the deduction for dependent spouse in place of the dependent child, however, that it is for the other children. In the presence of more children, however, if it is cheaper the deduction for dependent spouse than that paid for his son, the deductions for children after the first will be calculated taking into account the number of all dependent children, including the first .

It 'good time to clarify what it means in tax matters, and in this case, the first child and the requirement of cohabitation: means the chronological age greater among those with dependents. To verify the coexistence should be compared with the deduction due reference to the spouse and that paid by reference to the first child.

Tax Deductions for charges and expenses incurred in respect of children

The Consolidated Income Tax (Income Tax Code) also provides other tax deductions on income tax personal income tax. In addition to the deduction for dependent children, there is the deduction for dependent spouse, but also deductions for charges and expenses, which are those generally referred to as part of the E 730 form. Among others, these are the following tax deductions:

 Deductions for medical expenses;

 Deductions for medical expenses or disabled vehicles;

 deductions for mortgage loans;

 Deductions for education expenses, etc..

Taking into account that the following deductions incumbent if the expenses are incurred for dependent family members, including children, this raises the question of how these expenses should be allocated between the parents for the children, both in the condition of spouses not separated, both in case of separation, or in other cases. Guidelines arrive by the Inland Revenue.

As stated in the Circular. 11 / E of 2007, the rules for the allocation of deductions for dependent children are not also apply to the allocation of other deductions for expenses and charges. In such cases, the criteria should be followed to art. 12 paragraph 1 letter c) of the Tax Code, but the following rules:

 when the liability was incurred for dependent family members, the deduction or deduction to which the taxpayer is in the name the document certifying the expenditure;

 If, however, the document is opened in the child dependents for tax purposes, the expenses must be divided between the two parents in relation to their actual consumption;

 If the parents wish to share the costs in varying degrees from 50 percent must log into evidence of spending the distribution percentage;

 If one of the spouses is fiscally dependent on the other, the latter may consider the entire expenditure for the purpose of calculating the deduction or deduction.

So for example, in the case of deductions for medical expenses, the speaker slip with which drugs are purchased for example, if it contains the tax code of one of the parents, then the deduction is shown in speaker slip to the parent, being made out to the latter document certifying the expenditure. In other cases, it should be taken as a reference the actual incurred, so obviously has the opportunity to benefit from those deductions demonstrates that it has actually incurred the expense. It 'clear that it is possible for parents to indicate the evidence of expenditure, for the same dependent family member (in this case children), the distribution percentage.

Taking into account that you do not follow, for other tax deductions or tax expenditures, the rules provided for by art. 12 paragraph 1 of the Income Tax Code for deductions for dependent children, the allocation percentage (50% or 100%) of deductions for dependent children need not necessarily be followed for other expenses incurred for the children.

20/03/2013

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Translated via software

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Source:

Italian version of CercaGeometra.it

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