Insurance premiums are among the most frequent types of expenses that taxpayers deduct in a statement. However, the maximum amounts of expenditure that can be deducte have decrease significantly in recent years.
Below is a summary of the premiums currently deductible in the tax return.s
New for 2020 is the increase in the deduction on insurance premiums against seismic events. Since 2018, the insurance premiums for seismic events are always deductible at 19%, however, for the insurance premiums paid to an insurance company to which the tax credit of the 110% deduction due for the execution of anti-seismic interventions in areas has been assigned highly dangerous, the deduction due for them is high to 90 percent.
Another novelty for 2020 concerns the payment methods, the deduction from the gross tax to the extent of 19 percent of the charges, is up to the condition that the charge is borne by bank or postal payment or through other traceable payment systems. The provision does not apply to deductions due in relation to expenses incurred for the purchase of medicines and medical devices, as well as to deductions for health services provided by public structures or private structures accredited to the National Health Service.
From the tax year 2020 the tax deduction for
- Premiums for life and accident insurance
- Insurance premiums for the protection of people with severe disabilities
- Premiums for the risk of non-self-sufficiency
- Insurance premiums for the risk of calamitous events
- Premiums for the risk of disasters for insurance contracts stipulated at the same time as the transfer of the tax credit relating to earthquake interventions 110% bonus to an insurance company
varies according to the total income amount. In particular, it is entirely up to the holders of a total income of up to 120,000 euros. If the limit exceeds, the credit decreases until it reaches zero when a total income of 240,000 euros is reached. In order to verify the income limit, income subject to a flat rate tax is also taken into account.
1) Deductible insurance prxemiums: life and accidents
2) Insurance premiums for people with severe disabilities
3) Insurance premiums: risk of non-self-sufficiency in daily life
4) Insurance premiums: who is entitled to the deduction
5) Insurance premiums: indications in the form. 730/2021 and in the Income model
1) Deductible insurance premiums: life and accidents
The expenses incurred for life and accident insurance premiums are deductible in the tax return at the rate of 19% – art. 15, paragraph 1, lett. f), TUIR.
The deduction is due to the premiums paid for:
- the insurance policies on the life and accident insurance entered into or renewed by 31.12.2000, provided that:
- the duration of the contract is at least 5 years ;
- the granting of loans is not allow for this period ;
- The contracts entered into or renewed since 2001, provided that they relate to:
- the risk of death ;
- or permanent disability of not less than 5%.
The deduction is also due to the premiums paid for accident insurance relating to the car driver, usually stipulated in addition to the ordinary car liability policy (Circular 95/2000 answer 1.4.1).
The deduction sums up to a maximum amount of 530 Euros, even in the presence of a plurality of contracts. This amount must also include the expenses indicated in CU 2019 (points 341 to 352) with code 36.
2) Insurance premiums for people with severe disabilities
Since 2016, premiums paid for insurance contracts relating to the risk of death, aimed at protecting people with severe disabilities, are deductible to the extent of 19% (as defined by art.3 paragraph 3 of Law 104/92, ascertained in the manner referred to in Article 4 of Law 104/92).
The maximum spending limit on which to calculate the deduction is 750 euros. This amount must include the expenses indicated in CU 2019, points 341 to 352, with code 38.
3) Insurance premiums: risk of non-self-sufficiency in daily life
Insurance premiums relating to contracts that cover the risk of non-self-sufficiency in carrying out daily activities, as defined by Ministerial Decree 22.12.2000, are deductible at 19%, provided that the insurance company does not have the right to withdraw from the contract.
The maximum amount on which to calculate the deduction is equal to 1,291.14 Euros, net of insurance premiums relating to the risk of death or permanent disability (code 36) and premiums for insurance aimed at protecting individuals. with severe disability (code 38)
As an insurance agent, I facilitate the relationship between insurers and those interested in purchasing an insurance policy. My services consist of marketing products of insurance companies, advising the client during the term of the contract, and safeguarding the client portfolio and their loyalty to the insurer. Family life insurance, as the name implies, provides coverage for the couple, of all types. In this case, the children will be even more protected, since they know that, in case something happens to one of their parents, they will have the necessary resources to avoid difficulties. The possible coverage of family insurance varies according to the needs of the contractor.
You always have to be ready for all kinds of consequences. And so, by buying life insurance, you are providing the best security for your family.
With life insurance for family members, we organized exactly with the focus on protecting all the recipients, whoever they are, and which ones you choose. This makes it the best option for those who want to guarantee security and welcome to those you love, no matter what.
The death of one parent (or both parents) is always a personal catastrophe. But with the help of life insurance for parents, at least the family’s financial existence is safe and secure. You have provided sufficient protective padding in advance.
4) Insurance premiums: who is entitled to the deduction
Paragraph 2 of art. 15 of the TUIR establishes that the deduction is due even if the expenses for the insurance premiums were incurred in the interest of a fiscally dependent family member, without prejudice to the overall limit on which to calculate the deduction.
In this regard, the clarification offered by the Revenue Agency with Circular 17 / E of 18.05.2006 in which:
- reiterates the concept according to which if the insured is a fiscally dependent family member of the contracting declarant, the latter is in any case entitled to deduct the premium;x
- affirms that if the family member who is fiscally dependent on the declarant is both insured and contracting party, the declarant still has the right to deduct the premium.
The deduction, therefore, grants when:
- the declarant is both the policyholder and the insured;
- the declarant is the policyholder, but the insured is a dependent family member;
- the dependent family member of the policyholder is both the policyholder and the insured.
5) Insurance premiums: indications in the Income model
Within the income model, the deductible spending limit is equal to:
- € 530 for bonuses relating to the risk of death or permanent disability of not less than 5 percent.
- € 1,291.14 for insurance premiums relating to the ” risk of non-self-sufficiency in carrying out acts of daily life”.
- no limit for premiums relating to insurance relating to the risk of disasters stipulated starting from 1 January 2018 and relating to residential real estate units.
- € 750 for bonuses relating to the risk of death, aimed at protecting people with severe disabilities.
- Premiums for the risk of disasters for insurance stipulated at the same time as the transfer of the tax credit relating to earthquake interventions bonus of 110% to an insurance company.
There are various definitions for “Market”. It may be a physical marketplace or a virtual market. Learn more at Marketing Mix of Motor Insurance…..
