Every year, many Italians find themselves having to pay the rent for their home, which often represents a considerable item of expenditure in the family budget. But do you know that there is a tax deduction for rent that allows you to offload part of this expense from taxes? In this article we will explain how this deduction works, who can take advantage of it, how to calculate it and how to fill out the tax return.
In addition, we will also give you some tips on what to do if there is an error in the statement. Let’s find out together how to save on rent costs
!
Table of Contents:
How does the rent tax deduction work
The rent tax deduction is a tax benefit that allows you to subtract part of the rent paid during the year from income tax. In practice, this is a reduction in the taxable amount that translates into tax savings for the taxpayer. The mechanism is very simple: 19% of the annual fee, up to a maximum of 4,000 euros, can be deducted from taxes. For example, if you pay an annual fee of 10,000 euros, the tax deduction will be equal to 1,900 euros. This means that the tax to be paid will be calculated on a taxable income of 8,100 euros, instead of 10,000 euros
.
Who can take advantage of the tax deduction for rent
The tax deduction for rent is intended for all those who have a current lease agreement for the house in which they reside, provided that the rent has been regularly paid during the reference year. There is no income requirement to access the tax deduction. However, it is important to point out that those who own the rented property or who have a kinship relationship with the owner of the property itself cannot take advantage of the deduction. Furthermore, it is not possible to benefit from the deduction if you take advantage of a free loan agreement, that is, if you live in a house that was lent without paying any
rent.
How to calculate the tax deduction for rent
To calculate the tax deduction for rent, it is necessary to have available the documentation relating to the lease agreement and the payments made during the reference year. In particular, it is necessary to know the annual fee paid and the number of months in which the payment was made. The calculation of the tax deduction is carried out by multiplying the annual fee by 19% and then dividing the result by 12. The value obtained corresponds to the monthly deduction that can be reported in the tax return. It is important to remember that the maximum annual deduction is 4,000 euros, so if the annual fee exceeds this amount, the maximum deduction will always be 760
euros.
How to fill out the tax return for rent tax deduction
In order to take advantage of the tax deduction for rent, it is necessary to fill out the tax return correctly. In the 730 model or in the Single model, it is necessary to indicate the tax code of the owner of the property, the cadastral code of the property itself and the annual rent paid. In addition, it is necessary to report the amount of the deduction calculated based on the annual rent paid and the rental period. If you have more than one rental agreement, you must fill out a declaration for each rental property. It is important to carefully check the data entered and keep the documentation relating to the lease and the payments made, so that you can possibly show it in case of checks.
What to do if there is an error in the tax return for the rent tax deduction
If there is an error in the tax return for the tax deduction for rent, it is possible to file an adjustment. It is possible to make the correction by submitting a supplementary statement or, if the statement has already been sent, by submitting the correction model. It is important to pay attention to the times and methods for submitting the amendment, which may vary from case to case. In case of failure to rectify, there is a risk of being sanctioned by the Revenue Agency. It is therefore important to check the tax return carefully to avoid errors and, if any inconsistency is found, to correct it immediately.
In conclusion, the tax deduction for rent represents an opportunity to save on rental costs. Knowing the calculation methods and the requirements to access the deduction is essential in order not to lose this tax benefit. Remember to check your tax return carefully and to correct any errors in good time to avoid penalties
.
