Tax return 2019 and 730

• Tax return 2019 and 730
• What is the tax return?
• What is the 730 Model?
• How to fill in the 730
• Who can submit a 730
• Who does not have to do a 730
• Deadline of the 730
• Documents for the 730
• Who to contact for the 730 Model

The tax return is considered one of the most feared duties of the fiscal calendar, that without fail, during the 365 day period, always punishes taxpayers’ obligations.

What is the tax return?

The tax return is considered one of the most feared duties of the fiscal calendar, that without fail, during the 365 day period, always punishes taxpayers’ obligations.

The tax return is mandatory for:

• All holders of a VAT number, even if during the preceding year their activity did not bring any gain;
• All those in the previous year who have changed jobs and therefore received unique certifications (including income supplements such as mobility, unemployment, … disbursed by institutions such as INPS and others);
• Subjects who have had income taxed separate;
• I lavoratori che hanno percepito retribuzioni da parte di privati non obbligati per legge ad effettuare le ritenute d’acconto;
• Workers who have received pay from private individuals who are not obliged by law to make tax withholding;
• Subjects with dependent jobs who have mistakenly deducted.Taxpayers who have made gains (from online trading or capital gains to be subject to substitute tax).

Furthermore, it is advisable to submit a tax return, even if it’s not compulsory, in the case that the tax payer may benefit from some deductions (ex: to be able to deduct medical expenses incurred).

Individuals can submit their tax returns in two ways: the Income Model (formerly the Unico model) and 730, the first of which is the most complete document. Given the complication of the Income Model, it is advisable to seek the advice of a qualified professional who knows how to correctly fill out the document, thus avoiding incurring even very slight penalties.

Specifically, those who do not have the requisites to use the 730 Model must complete the 2018 Physical People Income model, ie all those who during the previous year have accrued income from one of these sources:

• Business income;
• Participation income;
• Self-employment income with VAT number;
• Other income that can not be declared with 730;
• Taxpayers who did not reside in Italy during the previous year;
• Taxpayers who are obliged to submit the VAT return, Model 770 or the IRAP declaration;
• Taxpayers who must submit the declaration on behalf of deceased relatives.

The natural persons 2018 income tax return form is divided into several frameworks within each of which a particular source of income is described. The following are the main ones:

• Framework A: land income;
• Quadro B: redditi dei fabbricati con la sezione II dedicata ai dati relativi ai contratti di locazione;
• RC Framework: employee and similar income;
• CR framework: tax credits;
• RP framework: charges and expenses. This is one of the most important items because it concerns deductible expenses or all the amounts that the tax payer, both in the first person and through dependents, can deduct from his tax base, with the aim of reducing the personal income tax. This includes, by way of example, healthcare costs, expenses for university education, costs for nursery and funeral expenses;
• RN Framework: this is the framework related to the settlement of the IRPEF tax which is the Income Tax of the Physical Persons on the basis of progressive rates and is divided into five sections, each relating to a different income brackets, from 23% to 43%. This is a direct and progressive taxation, therefore proportional to the income received during the year which establishes that percentage of income the tax payer must pay to the Tax Office.

Below are the rates provided depending on the taxable income:

• RV Framework: this is the framework relating to the liquidation of the regional and municipal add-on. These are taxes to be paid to local authorities (Municipalities and Regions) on the basis of residence: the Region can set a percentage up to 3.3%, while the Municipality must be limited to 0.8% – except for Rome which reaches 0.9%.

What is the 730 Model?

The 730 Model is a tax return model reserved for certain categories of tax payers, which was introduced in 1993. It differs from the Income Model (formerly the Single Model) in the following aspects:

• You do not have to perform calculations;
• It can only be completed by employees or retired employees;
• It has faster repayment terms: you get your tax refund directly in your pay-check or in your pension payment starting in July (starting in August for pensions);
• In the event of a debit, the amount is retained directly in the pay slip (starting from July – August for pensions) without forcing the tax payer to make payments into the bank.

The Inland Revenue on its website provides taxpayers with a pre-compiled 730 model, which contains numerous information, such as:

• The data of the Unica Certification given to the employee or retired employee by the substitute tax (employer, pension institution);
• The occasional self-employment fees certified and indicated in the single;
• Certification data on short leases;
• Interest expense on mortgages, insurance premiums and social security contributions;
• Deductible contributions paid to institutions or funds for welfare purposes or to mutual aid companies;
• Health expenses and related reimbursements communicated by doctors, pharmacies, accredited healthcare facilities for healthcare services, authorised and non-accredited healthcare facilities, parapharmacies (chemist/drugstore), opticians, psychologists, nurses, midwives, medical technicians of medical radiology, as well as institutions and funds for welfare purposes with regard to repayments;
• Veterinary expenses;
• University expenses and related reimbursements, funeral expenses and contributions paid to supplementary social security;
• Expenses for the attendance of nursery schools; 
• The credit transfers regarding the expenses for the recovery of the building stock, for the renovation of the renovated buildings and for the energy requalification of the buildings;
• Some data contained in the income tax return of the previous year: for example, land and building data, charges giving entitlement to a deduction to be divided into several annual instalments (such as expenses incurred in previous years for building heritage, refurbished buildings and energy requalification of buildings).

How to fill in the 730

You can access the pre-filled online 730 Model according to access requirements, similar to what happens with the pre-filled income tax return. It is sufficient to be in possession of:

• Access PIN for the Revenue Agency site;
• Device PIN for the INPS site (which is provided during registration);
• Through the public system for digital identity;
• Access with NOIPA credentials;
• The national services card.

In addition, the tax payer can always delegate, by specific written authorisation, the withholding agent who provides tax assistance to the tax payer, the CAF (Tax Assistance Center) or a qualified professional such as, for example, a trust accountant.

Who can submit a 730

The 730 model can be used by taxpayers who are:

• Employees
• Retirees
• Subjects who receive compensation substitutes for income from employment (eg mobility allowance)
• Members of cooperatives
• Priests of the Catholic Church
• Constitutional judges, parliamentarians and other holders of elective public offices
• Subjects engaged in socially useful jobs
• Agricultural producers (if exempted from submitting tax returns for tax substitutes).
  

Who does not have to do a 730

The exemptions from the 730 occur in the following cases:

• Employee or pensioner whose taxes due have already been withheld by the withholding agent (employer or pension provider);
• Taxpayers who have earned only tax-exempt income such as, for example, disability pensions;
• There are income limits including employee work or pension with an annual gross income of less than € 8,000.00€.

Deadline of the 730

The budget law of 2018 has made important changes to the tax deadlines that now are distributed more equitably during the year in the eyes of the tax authorities. Accordingly to the new indications provided, the deadline for the completion of a 730 is set by July 23 of each year; however, depending on the method of completion and submission, the deadline may vary in the following ways:

• 730 ordinary – deadline of July 7th for those who submit the declaration to the Tax Deputy;
• 730 pre-filled – deadline of July 23rd if the delivery takes place directly on the website of the Revenue Agency;
• 730 with delivery through intermediaries (CAF or others) – if the taxpayer delivers the documentation to the CAF by June 22nd, the institution will transmit the data to the Inland Revenue by June 29th; if instead the taxpayer delivers the 730 between June 23rd and June 30th, the communication will take place before July 7th; finally, if the citizen delivers the 730 by July 23rd, the communication to the Inland Revenue will take place by July 23rd.

Documents for the 730

CAF’s or licensed professionals have the obligation to verify that the data indicated in the 730 model comply with the documents presented by the tax payer and issue a conformity visa for each declaration (ie a certificate of correctness of the data).

Therefore the following documents must be shown:

• Income Certification (CU);
• Invoices, receipts and receipts related to the payment of deductible charges as well as the documentation necessary for their recognition (eg copy deed and loan agreement for the purchase of the building used as a main residence, …);
• Proof of payment of IRPEF advances made directly by the tax payer;
• Declaration of income of the previous year in case of tax surplus;
• In case of interventions of the building Association: invoices relative to the expenses effected and copies of the bank transfers (if the condominium works are concerned, the partial distribution released by the administrator is sufficient);
• In the case of energy saving measures: invoices, wire transfers, receipt of documents sent to ENEA, certification by a qualified design engineer.

For the errors detected by the Revenue Agency in a 730 Model drawn up by a qualified CAF professional, the tax payer is excluded from liability, while the qualified CAF Professional is imposed a penalty equal to the tax, interest and penalty.

If instead, the 730 is submitted directly on the Inland Revenue site, the responsibility of the declaration remains with the tax payer.

Who to contact for the 730 Model

If you decide to want to entrust the completion of your 730 to others, the options available are numerous: first you can refer to a qualified professional (accountant) who is aware of their fiscal and financial situation. A second solution is to contact a CAF, through a tax assistance center present in every city in different locations (branches open to individuals) that are the reference point for any problem with the Tax Office. In this case the cost will be significantly reduced compared to what a professional requires.

Furthermore, a 730 online service offered by Assocaaf – Solari has recently appeared on the market, which allows the completion of the model by the CAF, thanks to the documents previously uploaded by the tax payer in the appropriate personal section. Accessing this service is easy: just access the portal and, after having filled in and signed the request form, provide the required documentation.