Start requesting for invoices with your childs fiscal number on all invoices relating to educational costs. Why is this? By doing this you receive tax benefits on the upcoming IRS (Tax Return). Understand what expenses can be written off as well as the deduction's caps.
It is undeniable and well acknowledged that family budgets are significantly impacted by educational costs. You should keep in mind that you can get reimbursed for some of these costs. How? via you IRS return. Many school-related expenses can be written off on your next statement, from textbooks to private consultations.
Know all of the educational expenses that are tax deductible and what to do to protect the tax benefit.
What is the maximum amount that can be deducted from the IRS?
The regulations and the cap on deductions for education and training costs remain in effect in 2022.
You may deduct 30% of your expenses up to a maximum of 800€.
The household's expenses must total 2,500€ (30% of this sum is 800€) in order to qualify for this deduction. The cap is set at 400€ in the case of separate taxation.
The maximum deductible ceiling may rise to 1000€ for students under the age of 25 who are enrolled in educational institutions more than 50 kilometers from their place of residence. But take care this only occurs if the 200€ difference is due to rental costs.
You may deduct up to 300€ annually in total expenses related to real estate rents.
Families with children enrolled in institutions in the interior of the country or in the Autonomous Regions benefit from an increase of 10% in the amount spent on education.
What expenses can be deducted from the IRS?
Any eligible educational expenses must be VAT-free or subject to a minimum rate of 6%. Additionally, the establishment's Codes of Economic Activity (CAE), which include education, the retail sale of books in specialized establishments, childcare activities without housing, real estate rental, tutores, teachers, and nannies must be covered by the IRS Code.
Therefore, the list of school-related expenses that can be written off includes:
Costs for daycare facilities, pre-schools, schools, educational institutions, and other educational services, as well as fees and costs;
Textbooks;
Rent for rooms or houses for displaced students;
School meals.
The IRS also considers expenses related to the study rooms, private tutoring, and teaching of music, languages, singing, and theater to be educational costs that are deductible.
With regard to sports activities, a maximum deduction of 250€ per household is now allowed for all sports-related expenses.
Non-deductible expenses
Even though they are related to education, some costs fall within the categories of education and training that are not eligible for an IRS deduction. With the exception of textbooks, this is true for items or services subject to a 23% VAT and bought outside of educational institutions, such as:
Textbooks;
Laptops;
Musical Instruments;
School Transportation;
Clothing and footwear for physical education.
With the above expenses they are omitted.
It is crucial that you constantly request an invoice with the taxpayer identification number, such as the parent or the student, in order to receive these tax benefits.
Verify invoices on the e-invoice portal throughout the year to make sure they are entered in the correct category. Since some invoices automatically fall into the General And Family Expenses category, it is critical to often ensure that they are entered accurately. Simply modify the category manually if this occurs.