From child care credits to university benefits, the Indicatore della Situazione Economica Equivalente (ISEE) is a fundamental tool used in Italy to assess the economic situation of families for the purpose of granting access to social benefits and services. The ISEE takes into account household income, assets, and the overall family situation, giving a comprehensive view of the financial standing of applicants. Understanding how to calculate the ISEE and gather the necessary documents can be complex. This guide aims to break down the process and provide a clear understanding of what is needed to successfully file for an ISEE in 2024.
What is the ISEE?
The ISEE, or Indicatore della Situazione Economica Equivalente, is an indicator that measures the financial situation of a household. It is used by the Italian government and other institutions to determine eligibility for various forms of social assistance, such as reduced tuition for universities, social housing, discounts on utilities, and access to healthcare services.
The calculation of the ISEE is based on both income and assets, with consideration given to the size and composition of the family. Each family member adds a certain “weight” to the calculation, meaning larger families may be eligible for more assistance even with the same income as a smaller family.
What is the DSU?
To calculate the ISEE, a Dichiarazione Sostitutiva Unica (DSU) must be submitted. The DSU is a comprehensive document that declares the household’s income, assets, and personal situation. Once submitted, the DSU is processed to calculate the ISEE.
Why is the ISEE Important?
The ISEE is essential for accessing a wide range of social benefits and public services, including:
- University Benefits: Reduced tuition fees based on family income.
- Healthcare Assistance: Discounts or exemptions on healthcare services.
- Social Housing: Eligibility for subsidized housing programs.
- Childcare and School Support: Access to reduced fees for daycare and other educational support services.
- Utility Bill Discounts: Reduced payments for electricity, gas, and water bills.
Now that we understand what the ISEE is and why it is important, let’s dive into the details of how to gather the required documents and submit the DSU for 2024.
Required Documents for the ISEE in 2024
When applying for an ISEE, the documents listed in the DSU provide the foundation for accurately calculating your financial situation. Below is a comprehensive list of the documents you’ll need to prepare.
Household Composition
You must provide information about the household composition at the time of submitting the DSU. This includes all the members who make up your family unit, such as parents, children, and other dependents. The ISEE calculation is influenced by the number of people in the household, as more members typically increase the eligibility for social benefits.
Valid Identification Documents
The dichiarant, or the person submitting the DSU, must have a valid ID at the time of submission. This can be a national ID card or passport.
Health Insurance Card
For each family member listed in the household composition, you will need to provide their tessera sanitaria, or health insurance card. This document is important for verifying the identity and status of each household member.
Residence Permit for Foreign Nationals
If you are a foreign national living in Italy and applying for maternity benefits or other types of assistance, you will need to provide a valid residence permit. This ensures that you are eligible for social benefits even if you are not an Italian citizen.
Registered Rental Contract
If your family lives in a rented property, you must provide a registered rental contract. This is necessary to account for the expenses related to housing, which can affect your overall financial situation. Make sure the contract is officially registered with the authorities and reflects your current living situation.
Financial Assets
To calculate the ISEE, you need to declare all financial assets held by household members. This includes:
- Bank account balances and other forms of investment as of December 31, 2022.
- The average annual balance for 2022, which is calculated based on the sum of annual credits divided by 365 days.
- If you hold financial assets abroad, you must provide the foreign intermediary’s identification code and tax code. For foreign assets, include the character “E” to signify external assets.
- If you are a business owner, you must declare your net assets as of the latest financial year.
Real Estate Assets
You are required to submit a property report for any real estate owned by household members, both in Italy and abroad, as of December 31, 2022. This includes any real estate properties you or your family own, which will be factored into your overall financial situation.
Outstanding Mortgage
If you own property and have a mortgage, you will need to declare the outstanding balance on the mortgage as of December 31, 2022. This reduces the overall value of your property holdings and may help lower your ISEE score.
Non-taxable Income
In addition to declaring taxable income, you must also report any non-taxable income received in 2022. This includes any income that was not subject to personal income tax (IRPEF), such as certain social security benefits or stipends.
CU 2023 (Income for 2022)
If you are exempt from filing a tax return, you need to submit the Certificazione Unica (CU) 2023, which details your income for the year 2022. This document is issued by your employer and provides a summary of all income received during the year.
Other Types of Income
If applicable, report any other types of income, referred to as fc4, that were received by household members as of December 31, 2022. These could include rental income, pensions, or other financial support.
Legal Separation or Child Support
If you are legally separated or divorced, you must provide a court ruling detailing the terms of the separation, as well as evidence of child or spousal support payments. These payments will be factored into the ISEE calculation, potentially lowering your overall score.
Vehicle Information
If your household owns vehicles, you need to provide details on each vehicle, including the license plate number and the type of vehicle. This includes:
- Cars
- Motorcycles with an engine capacity of 500cc or higher
- Boats and yachts
Disability Certificate
If any household members are disabled, you must provide a disability certificate to include this information in the ISEE calculation. Certain social benefits are available specifically for households with disabled members, and this documentation is required to access those benefits.
ISEE for University Students
Students applying for university-specific benefits must provide additional documentation, including:
- Matriculation number
- Course of study
- If applicable, the personal and financial details of a non-resident parent
Submitting Your DSU
Once you have gathered all the required documents, the next step is to submit the DSU. This can be done at a CAF (Centro di Assistenza Fiscale), which is a tax assistance center, or through the INPS (Istituto Nazionale della Previdenza Sociale) website.
How the ISEE is Calculated
After submission, the ISEE is calculated based on a combination of your income, assets, and household composition. The calculation is meant to give a comprehensive view of the household’s financial situation, which will determine eligibility for various benefits.
Common Mistakes to Avoid
When applying for the ISEE, it is crucial to avoid common mistakes that could delay or negatively impact your application. One of the most important aspects is ensuring that all financial information, especially income and assets, is accurately updated as of the required dates. Additionally, make sure to include all household members, as the ISEE calculation takes the entire household into account, and omitting any members can lead to incorrect results. Finally, submitting incomplete documentation is another frequent error, so double-check that all required documents are complete and valid at the time of submission to avoid complications.
Over to you
The ISEE is a crucial tool for accessing social benefits in Italy, and understanding the required documentation is key to successfully submitting your DSU. By following this guide and gathering the appropriate documents, you can ensure that your application is processed smoothly and that you receive the benefits you are eligible for in 2024.
