instructions, income limits and news

Rent deduction in the 730/2022 model: the amount of the IRPEF refund due is determined in relation to specific income limits, but also based on the type of contract and the subjective characteristics of the tenant. In the instructions of the Revenue Agency the specific rules for benefiting from it.

Deduction of the rent in the model 730/2022: who is entitled to the personal income tax refund?

In light of the start of the tax return season, let’s focus on instructions, income limits and news relating to the reimbursement of rents relating to properties used as a main residence.

L’amount of the rent deduction is calibrated on the basis of the total income of the contributor who presents the 730/2022 model. Different rules are also provided for rentals a agreed feefor the workers who transfer their residence for work reasons and for i young people aged 20 to 30.

The specific rules for benefiting from the rent deduction relating to the rents paid in 2021 are provided by the instructions for the compilation of the model 730.

Let us dwell below on the conditions provided, case by case.

Rent deduction in the 730/2022 model: instructions, income limits and news

Rent deduction in the 730/2022 model: beneficiaries and instructions

The deduction of the rent is recognized to taxpayers holders or joint holders of a lease agreement relating tomain residenceunderstood as the one in which the declarant or his family members usually reside.

From 23 May 2022 the Revenue Agency will make the pre-filled 730 form available to taxpayers, and it is therefore good to take stock of the instructions to keep in mind.

There are different types of concessions due, and in the first place to determine the amount recognized it will be necessary to take into account the type of rental contract:

  • free of charge;
  • with conventional fee;
  • stipulated by young people aged between 20 and 30;
  • stipulated by employees on the occasion of transfers for work reasons.

As indicated in the instructions of the Inland Revenue for the compilation of form 730/2022, the deductions are recognized and calculated on the basis of the total income amount and in relation to the number of days in which the property was used.

The taxpayer will have to fill in the line E71 or E72 from the “SECTION V – Deduction for tenants with a lease“, Using the code relating to the specific case.

The deductions are not cumulative, but the taxpayer has the right to choose the one most favorable to him. If, on the other hand, during the year the taxpayer finds himself in different situations, he can benefit from more deductions.

As anticipated at the beginning, the rent deduction is calculated on the basis of the total income.

If the refund due is greater than the tax due by the taxpayer, a credit equal to the deduction which has not found capacity in the IRPEF.

Type of contract Specific requirements Deduction amount and income limit Instructions 730/2022
Main residence (free rent) 300 euros up to 15,493.71 euros of income; 150 euros up to 30,987.41 euros of income line E71, cod. 1
Main home (with agreed rent) 495.80 euros up to 15,493.71 euros of income; € 247.90 up to € 30,987.41 of income line E71, cod. 2
Main residence for young people aged 20 to 30 First three years from the signing of the contract, home other than that of parents or foster carers 991 euros up to 15,493.71 euros of income line E71, cod. 3
Main residence for workers transferred outside the region (for the first three years of the transfer) Ownership of an employment contract, having transferred residence to the municipality of work or to a neighboring one (at least 100 km away from the previous one) and in a region other than that of origin 991.60 euros up to 15,493.71 euros of income, 495.80 euros up to 30,987.41 euros of income line E72
Off-site university students University at least 100 km from the Municipality of residence and located in a different province 19 percent within the spending limit of 2,633 euros Line E8 / E10, cod. 18

Now let’s go into detail by analyzing the following instructions for the rent deduction in the 730/2022 model provided by the Revenue Agency.

Rent deduction 730/2022 for the main house

The tenants of housing used as main residence (so-called first house) can deduct the rent by filling in the line E71, cod. 1 of model 730/2022.

As established byarticle 16 of the Tuirthe deduction of the rent for the main residence is due as a lump sum based on the duration of the lease and for the following amount:

  • 300 euros if the total income (including income subject to the coupon regime) does not exceed 15,493.71 euros;
  • 150 euros if the total income (including income subject to the coupon regime) is greater than 15,493.71 euros but not 30,987.41 euros.

There rent deduction in the 730/2022 model is divided on the basis of contestants of the lease.

For example in the case of husband and wife joint holders of the leasethe deduction is due to the extent of 50 per cent each in relation to their income.

The documents to be checked and kept in order to benefit from the deduction are the regularly registered lease and a self-certification certifying the use of the house as a main residence.

Deduction for renting model 730/2022 young people aged between 20 and 30 years

In the case of young people aged between 20 and 30 it is possible to deduct the rent by filling in the line E71, cod. 3 of model 730/2022.

The deduction of the rent for young people is allowed if the rented property is used as a main residence.

In this case, the tax deduction is due to the extent of 991.60 euros only if the total income for 2021 does not exceed 15,493.71 euros.

The possibility of deducting the rent with the 730/2022 model is allowed for i first three years from the signing of the contract and it is only due in the event that the rented home is different from that of the parents or foster parents.

The deduction is also due in the case of joint lease agreement in which only one of the holders complies with the personal requirements.

Also in this case it is necessary to check and keep the following documents:

  • duly registered lease;
  • self-certification in which the young person certifies that the property is used as a main residence and that it is different from that of the parents or those to whom it is entrusted.

With regard to the deduction of rent for young people, please note that the 2022 Budget Law introduced some important changes starting from the 2022 tax year:

  • the personal data requirement passes from 30 to 31 years of age:
  • the deduction is also due in the case of renting a room in the property;
  • the benefit is valid for four years, in compliance with the required income and personal data conditions;
  • the value of the deduction rises, which becomes equal to the higher amount between the lump sum of 99160 euros and 20 percent of the fee, up to a maximum of 2,000 euros.

It is specified that, on the operational front, the innovations will debut on a practical level in the 730/2023 model, while no changes are foreseen in relation to the 2022 tax return.

Deduction for rent model 730/2022 for rented accommodation with agreed rent contract

For lease contracts stipulated in the conventional regime (agreed rent) the tax deduction of the rent must be requested by filling in the line E71, cod. 2 of model 730/2022.

In this case, the deduction on the recognized rent is equal to:

  • 495.80 euros if the total income (including income subject to the dry coupon regime) does not exceed 15,493.71 euros;
  • € 247.90 if the total income (including income subject to the coupon dry regime) exceeds € 15,493.71, but not € 30,987.41.

To benefit from the deduction with the 730/2022 model it is necessary to keep the rental contract, registered, stipulated pursuant to art. 2, paragraph 3 and art. 4, paragraphs 2 and 3 of Law no. 431/98 and the self-certification in which it is certified that the property is used as a main residence.

Deduction for rent model 730/2022 off-site university students

The off-site university students lease holders are entitled to request the rent deduction presenting the 730/2022 model within the total limit of 2,633 euros.

The deduction allows you to recover 19 percent of the amount incurred and, therefore, a maximum of 500 euros.

In addition to the spending limits, the rule provides that the deduction is granted as long as the university where the student is enrolled is at least 100 km away from their municipality of residence.

The deduction of rent in the 730/2022 model for off-site students is recognized as long as they comply with this requirement and that relating to the location of the university, which must be located in a province other than that of residence.

The deduction of the rent must be requested by filling in the Line E8 / E10, cod. 18 of the 730/2022 model.

Deduction for rent model 730/2022 for workers who transfer their residence for work reasons

Employees who have transferred their residence in the municipality of work or in one of the neighboring ones have the right to deduction with model 730/2022 of the rents, according to specific rules.

There deduction of the rent for off-site workers is equal to:

  • 991.60 euros if the total income (including income subject to the dry coupon regime) does not exceed 15,493.71 euros;
  • 495.80 euros if the total income (including income subject to the dry coupon regime) exceeds 15,493.71 euros, but not 30,987.41 euros.

For the purposes of the deduction, line E72 must be completed in form 730/2021.

However, some must be respected requirements to benefit from the deduction, namely:

  • be holders of an employment contract;
  • transfer the residence to the municipality of work or to one of the neighboring ones which is at least 100 km away and in a region other than that of origin.

The deduction can be used in the first three years from the transfer of residence.

To benefit from the rent deduction with the 730/2022 model, the worker must take care to keep the following documentation:

  • Registered lease agreement;
  • Employment contract, or CU 2022 certifying the qualification of employee;
  • Self-certification in which the residence is certified, that the property is used as a main residence and that all the conditions required to benefit from the deduction are met.

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