How much you can deduct of the cost of life insurance and accidents in the model 730?
Among the tax deductions, which allow the taxpayer to reduce the income tax (income tax) to be paid and to declare the Form 730 or Unico, there are income tax deductions of 19% of the costs for some costs incurred during the year . Among the 19% of the tax deductions are those for insurance, as required by art. 15 of the Tax Code.
The income tax deduction on the life insurance and accident insurance allows you to deduct from the gross income tax calculated on total income, 19% of the costs incurred for insurance premiums pertaining to:
• the risk of death;
• permanent disability of not less than 5%, resulting from any cause;
• the risk of long-term care in the performance of acts of daily life.
The deduction provided that the insurance company can not cancel the contract. And the amount of the deduction, which in 730 is to indicate in line E12, should not be higher than € 1,291.14.
In the insurance contract the contractor is the person who enters into the contract with the insurer and bearing the costs, the insured is the person whose life or disability is the subject of insurance, the beneficiary is the person to whom is due the insurance benefit. In general contractor and insured are the same person, but the right of deduction available even if the taxpayer enters into an insurance and pays the premiums on behalf of a dependent. The various circulars specify the Inland Revenue.
The circular 137 / E 1997 of the Revenue states that can be deducted the premiums paid to foreign insurers. The resolution n. 391 of 2007 also allows you to consider, fringe benefit competitors to employment income and deductible as insurance premiums, also the contributions paid by insurance companies to fund the Single National Long Term Care (LTC) insurance of employees, for hedge against the risk of failure of acts of daily life due to illness or injury.
Insurance policies taken out after 2001
The premiums for contracts entered into or renewed from 1 January 2001 entitle to deduct income tax only if they are subject to having insurance, as already listed, the risk of death, the risk of permanent disability is not less than 5%, resulting from any due to the risk of long-term care in the performance of acts of daily life. And without the right to withdraw from the insurance company.
The deduction in particular for the following insurance policies:
• "mixed" (relating to the risk of death);
• SO-CALLED lifetime risk of death;
• the risk of permanent disability resulting from "any cause"
• risk of dependency in the fulfillment of acts of daily life.
The insurance contracts whose object the risk of death in "mixed" provide for the payment of benefits both in case of death and in case of stay in the life of the insured at the end of the contract or in the event of early redemption. In this case the mixed-deductible premium is attributable to only one risk death. The SO-CALLED lifetime risk of death, however, provides for the payment only in the event of death.
The insurance contract having as its object the risk of permanent disability resulting from "any cause" to qualify for the tax deduction on premiums, must include a disability not less than 5% but can derive from injuries that disease. E 'can also entering into insurance policies that cover the risk of disability less than 5%, but in this case the prize is not deductible. It is deductible only for the part as to the invalidity of not less than 5%.
For the insurance contract having as its object the risk of long-term care in the performance of acts of daily life, the tax deduction on premiums if it contracts to hedge the risk on long-term care of the following acts: food intake, walking, carrying out physiological functions and personal hygiene, wear clothing.
Insurance policies taken out before 2001
The premiums for contracts entered into or renewed until December 31, 2000 entitle to deduct income tax if attributable to life insurance and accident insurance. The deduction is allowed provided that:
• the contract has a duration of not less than 5 years;
• does not allow the granting of loans in the period of minimum duration (5 years);
If there are these two requirements the right to deduct remains until the contract expires.
Redemption and death before the age of five. If the insurance is redeemed during the period of minimum duration of 5 years, the amount of the awards for which it was taken advantage of the tax deduction constitutes income subject to separate taxation. The death instead does not constitute redemption (circular 95 / E, 2000).
Life insurance and accident insurance in the model 730
In order to qualify for the deduction of 19% for business paid for the life insurance against the risk of death, compared to the risk of injury and the risk of dependency is necessary to fill in the Form 730 (or even in the model Act), the 'special line dedicated to the deduction.
730 In 2011, the line is to be completed in the Framework And on the Costs and Expenses subject sull'Irpef tax deduction of 19%. This is the line E12. The amount to be specified, taking into account the indications of this Article, shall not exceed € 1,291.14 deduction.
Please note that the non-statutory social security contributions are fully deductible and therefore to indicate in line E22. The amount indicated in line E12 must also include insurance premiums marked with the code 12 in the records of the CUD, 2011 and / or CUD 2010.
06/06/2011
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Translated via software
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Source:
Italian version of CercaGeometra.it