Budget Law 2020: news, bonuses, incentives and deductions for families

The 2020 Budget Law in force on 1 January 2020 was published in the Official Gazette of 30 December 2019.

The children who will be born this year are very lucky as families will have plenty to indulge in bonuses and incentives and father leave. And these are just some of the important innovations that embrace 2020. But let’s go in order and see in detail the provisions of greatest interest to families and consumers.

News for Mums, Dads and Children

GOOD NURSERY

The 2020 Budget Law structuralises and increases (from 2020) the voucher envisaged for those born on or after 1 January 2016, relating to the payment of fees for attending public and private nursery schools, as well as for the introduction of forms of support at home for children under the age of three, suffering from serious chronic diseases.

In particular, the value of the voucher amounts, starting from 2020, to:
– 3,000 euros for households with an ISEE value not exceeding 25,000 euros;
– 2,500 euros for households with an EEA value between 25,001 and 40,000 euros.

Please note that the voucher in question is paid monthly by INPS, within the limit of the resources allocated, to the requesting parent, upon presentation of suitable documentation relating to enrollment and payment of the fee to public or private structures.

BABY BONUS

The 2020 Budget Law also extends the childbirth allowance to children born or adopted between 1 January 2020 and 31 December 2020.
This amount, with reference to children born or adopted during 2020,
– is disbursed directly by INPS in monthly installments, starting from the month of birth or adoption (upon request by the person concerned);
– does not contribute to the formation of the total income;
– is paid exclusively up to the completion of the first year of age or the first year of entry into the family nucleus following the adoption.

The amount of the grant is equal to:
– 1,920 euros, if the family unit to which the requesting parent belongs is in an economic condition corresponding to an ISEE value not exceeding 7,000 euros per year;
– 1,440 euros, if the family unit to which the requesting parent belongs is in an economic condition corresponding to an ISEE value of more than 7,000 euros and not more than 40,000 euros;
– 960 euros, if the family unit to which the requesting parent belongs is in an economic condition corresponding to an ISEE value of more than 40,000 euros.

In the case of a child following the first, born or adopted between 1 January 2020 and 31 December 2020, the amount of the allowance is increased by 20%.

MANDATORY LEAVE OF THE WORKING FATHER

Compulsory paid leave (daily allowance paid by INPS equal to 100% of the average global daily salary), to be used within 5 months of the birth of the child (or of the entry into the family of the minor, or of entry into Italy in case of international adoption), in favor of the employed father is also extended for the year 2020, in relation to children born or adopted from 1 January 2020 to 31 December 2020, to the extent of 7 days (increased compared to the previous 5, in force until 31 December 2019).

It should be remembered that the leave can also be taken on a non-continuous basis. Also for the year 2020, moreover, the worker is entitled to take an additional day of leave, subject to agreement with the mother and in lieu of a day of compulsory abstention due to the latter.

REFUND FOR THE PURCHASE OF ANTI-ABANDONMENT DEVICES

From 20 February it is possible to request a purchase contribution by registering on the Sogei platform directly on the website of the Ministry of Infrastructure ( www.mit.gov.it ). The device must be purchased within one month of requesting  the contribution, otherwise it will be necessary to make a new request.

The Ministry’s website reads:

“The contribution is paid through the release of an electronic shopping voucher of 30 euros for the purchase of the anti-abandonment device associated with a minor’s tax code”.

If you have already purchased a device in recent months, the Ministry provides a refund. You must request it within sixty days starting from 20 February 2020, attaching a copy of the expense receipts, receipt or invoice.

The 30 euros will be credited within 15 days of the request on the site.

News for women and pensions

WOMEN’S OPTION

The so-called “woman option” is recognized in favor of female employees born in 1961 and self-employed female workers born in 1960 who have accrued 35 years of contributions by 31 December 2019. Nothing changes regarding the application of the exit windows, set at 12 months for employees and 18 months for the self-employed. Furthermore, it is envisaged that permanent staff in the school and AFAM sector, by 29 February 2020, may submit an application for termination of service with effects from the beginning of the school or academic year respectively.

Shopping: preferably by debit or credit card

REWARD MEASURES TO PROMOTE ELECTRONIC PAYMENTS

In order to encourage the use of electronic means of payment, the 2020 Budget Law introduces a measure aimed at rewarding natural persons of legal age, residing in Italy, who, as private subjects, habitually use electronic payment instruments for the purchase of goods or services. This measure takes the form of a cash refund, which will be governed by the Ministry of Economy and Finance with a specific decree to be issued by 30 April 2020.

Deductions (medical expenses, school expenses, etc.)

TRACEABILITY OF DEDUCTIONS

The IRPEF deduction of 19% of the charges pursuant to art. 15 TUIR is recognized only if the expense is incurred by bank, postal or other traceable payment systems. The provision is not applicable to the deduction due for the purchase of medicines, medical devices as well as for healthcare services rendered by public or private structures accredited to the NHS.

DEDUCTION FOR VETERINARY EXPENSES

With reference to the regulation of deductions for charges pursuant to art. 15 of the TUIR, the threshold subject to deduction is raised, which now concerns “veterinary expenses, up to the amount of 500 euros, limited to the part that exceeds 129.11 euros”.

DEDUCTION FOR THE STUDY OF MUSIC

In order to combat child educational poverty, from the 2021 tax period, each taxpayer will be able to deduct from the gross tax an amount equal to 19% of the “expenses, for an amount not exceeding 1,000 euros, incurred by taxpayers with total income not more than 36,000 euros for the annual enrollment and subscription of children aged between 5 and 18 to music conservatories, to legally recognized higher education institutions of art, music and dance (AFAM), to music schools registered in regional registers as well as choirs, bands and music schools recognized by a public administration, for the study and practice of music.

REMODULATION OF DEDUCTIBLE CHARGES BASED ON INCOME

The Budget Law for the year 2020 provides for the reformulation of the deduction for charges based on the taxpayer’s income, assumed net of the income of the main residence and related appurtenances. In particular, it is envisaged that the aforesaid deduction is due:
– for the entire amount, if the total income does not exceed 120,000 euros;
– for the part corresponding to the ratio between 240,000 euros, reduced by the total income and 120,000 euros, if the total income is greater than 120,000 euros.
The deduction applies for the entire amount, regardless of the amount of total income, for the following expenses:
– interest expense on agricultural loans/mortgages (within the limit of land income);
– interest expense on mortgage loans for the purchase/construction of the main residence;
– healthcare expenses incurred for pathologies that give the right to exemption from participation in healthcare expenses.

Women and Sports

PROFESSIONAL WOMEN’S SPORT CONTRIBUTION EXEMPTION

In order to promote professionalism in women’s sport and extend the protections provided by the legislation on sports work performance to female athletes, the 2020 Budget Law establishes a contribution exemption of 100% of social security and welfare contributions, within the limit of 8,000 euros per year, for each of the years 2020, 2021 and 2022.
Premiums for compulsory accident insurance are excluded from this exemption.