Deductible costs are a great way to reduce the money you pay to the state. But what are they?
These are those costs that have been incurred during the year and which can be subtracted, not from the gross tax as in the case of deductible expenses, but directly from the taxable income (i.e. the difference between revenues and costs inherent to the activity turning) before calculating the income tax .
For example, if a deductible cost of 30 euros has been incurred and a gross income of 100 euros is declared, the income on which to calculate the taxes will decrease by 30 euros, thus becoming 70 euros (100-30).
Social security contributions
The main deductible cost is represented by the contributions paid to INPS or to the social security fund to which it belongs. As far as the INPS is concerned, the deduction is possible in full following the “cash” rule, ie the contributions are deductible in the year in which they are paid. Therefore, in the tax return that will be completed in 2015 on the income of 2014, only the contributions that were actually paid from January to December 2014 can be deducted.
These rules apply both to the management of artisans / traders (the cashier to which individual entrepreneurs are registered ) and to the separate management (the cashier to which self-employed workers and those who do not belong to any Order or Register are registered).
On the other hand, members of an Order are required to pay contributions to the specific social security fund every year (for example, Inarcassa for engineers and architects, Inpgi for journalists and so on). In this case the deductible contributions are only those paid to the Order on a subjective basis. The part of the objective contribution, on the other hand, is non-deductible.
Those who have chosen to build a supplementary pension can also deduct the contributions paid to the supplementary pension. In this case, contributions can be downloaded up to a maximum limit of € 5,164.57 .
Donations and home helps
You can deduct from income even donations made during the year 2014 to the non-profit organization (the non-profit organizations of social utility) and the part of insurance policies for liability paid to the National Health Service .
In addition, another expense that can be deducted is the cost for family domestic services (the home helps). In particular, two thirds of the contributions paid during the year can be deducted, since the remaining third is borne by the employee and therefore is already deducted in the pay slip.
Lastly, allowances paid to a separated spouse are also deductible , with the exception of the amounts intended for child support.
As usual, in order to deduct these expenses, all the documentation certifying the payment of costs must be presented to the accountant. Therefore bank receipts, postal bulletins and all forms concerning the expenses incurred must always be kept.