The season of tax declaration has been in full swing for a few weeks now with the possibility of sending the pre-compiled form 730 on May 20th.
There is still time, however, to prepare your declaration so it is better to carefully analyze the expenses that have been incurred and which can be deducted or deducted. Both benefits are provided for by the Tuir, the Consolidated Law on Income Taxes relating to Irpef and Ires and apply to both the income of individuals and companies.
In a previous article by IlGiornale.Itwe talked about tax deductions while today we will analyze the deductions.
What are tax deductions
When we talk about deductions we are referring to the possibility of subtracting from your taxable income a series of expenses that are considered a reason for “reducing” your income. So, unlike the deductible expenses which are subtracted as a percentage (usually 19%) from the gross tax, the deductions lead to a “reduction” of one’s income, simultaneously lowering the possible taxation on the taxpayer’s gross taxable amount.
Furthermore, the calculation of deductions is done upstream of the definition of taxable income while the deductions are inserted at a later stage; therefore, if the taxpayer has both expenses to be deducted and expenses to be deducted, the former are entered first, and once the gross tax has been calculated, the percentage obtainable for the specific deductible expense can be subtracted.
What expenses can be deducted
The list of deductible expenses in the tax return is less long than that of deductions.
We start with the deductions of the costs incurred for the payments of social security and welfare contributions, including those paid for the redemption of the graduation years or the supplementary pension contributions; normally the deductible amount is between 23% and 43% based on income.
Still on the subject of social security contributions, the list also includes social security contributions paid for collaborators involved in domestic and family services, including domestic workers and carers; these expenses are also deductible from 23% to 43%, based on income, up to a maximum of 1549.37 euros.
From a healthcare point of view, however, all general medical expenses and
for specific assistance for people with disabilities and/or with serious disabilities and impairments; therefore, the services of doctors for visits or the purchase of medicines are included.
Other deductible expenses are:
- periodic allowances paid to the ex-spouse;
- contributions paid to the supplementary funds of the National Health Service; C
- contributions to recognized NGOs
- donations to charitable, cultural and scientific bodies/associations.
