Italian retirees can take advantage of tax breaks that allow them to deduct some expenses from taxes. But what are these expenses and how does the tax deduction work for retirees? In this article, we will find out what deductible expenses are, how to apply for a tax deduction and what documents are needed. If you are a retiree curious to know how to save on taxes, read
on!
Table of Contents:
How does the tax deduction work for retirees
First of all, it is important to know that the tax deduction for pensioners is regulated by Italian law. In particular, Law 104/92 provides for some tax breaks for retirees who need assistance or who have particularly onerous health expenses. The tax deduction is calculated as a percentage of the expenses incurred and can reach up to 19%. In addition, there is a spending threshold beyond which a tax deduction can be requested. For health expenses, for example, the threshold is 10% of the pensioner’s total income, while for home care expenses the threshold is 2,100 euros per
year.
What can be deducted from retirees’ taxes
But what can be deducted from retirees’ taxes? In general, health expenses and those for home care are among those deductible. For health expenses, you can deduct the expenses incurred for medical visits, therapies, medications, prostheses, etc. For the expenses for home care, on the other hand, you can deduct the expenses incurred for hiring specialized personnel or for the purchase of mobility or communication aids. It is important to know that deductible expenses must be incurred during the calendar year and must be documented with regular invoices or tax receipts. In addition, it is possible to deduct only the expenses actually incurred, without being able to exceed the statutory spending threshold.
Deductable medical expenses for retirees
Medical expenses are among the most common ones for which retirees request a tax deduction. Deductable medical expenses include specialized medical visits, dental care, surgery, the purchase of medications, the purchase or rental of medical devices, such as wheelchairs or crutches. It is also possible to deduct the expenses for the purchase of glasses, hearing aids, electrical appliances, dietary products and dietary supplements. In addition, if the retiree needs treatment at foreign facilities, these expenses can also be deducted, as long as they are documented by regular invoices and receipts. Finally, medical expenses incurred for the dependent spouse or dependent children may be deducted, as long as they meet the statutory spending thresholds
.
Deductable home care expenses for retirees
Home care expenses are another category of expenses for which retirees can claim a tax deduction. In particular, the expenses incurred for hiring specialized personnel, such as caregivers or nurses, for the purchase or rental of mobility aids, for communication or for personal hygiene, are deductible. The expenses incurred for adapting the home to the needs of the retiree, such as the construction of ramps or handles, are also deductible. It is important to know that home care expenses can only be deducted if borne by retirees who are not self-sufficient or not completely self-sufficient, and that the statutory spending threshold is 2,100 euros per year
.
How to claim a tax deduction for retirees
To request a tax deduction for expenses incurred, retirees must file the tax return, filling out the 730 model or the PF Income model. In the model, it is necessary to indicate the expenses incurred and their amount, and attach the related invoices or receipts. In case of checks, it is important to keep invoices and receipts for at least 5 years. In addition, it is possible to request a tax deduction even in the case of expenses incurred abroad, as long as these are documented by invoices or receipts issued according to the tax legislation of the country in which they were incurred. Finally, it is possible to request a tax deduction even in the case of expenses incurred for the dependent spouse or for dependent children, indicating the related information in the tax return model.
In conclusion, the tax deduction for retirees can represent significant savings on taxes. Knowing what the deductible expenses are, how the tax deduction works and how to request it is essential to be able to take advantage of this benefit. If you are a retiree, do not hesitate to find out about the tax breaks to which you are entitled and to ask for assistance from a professional in the sector
.
