"NEWS May 20, 2016-health expenses on mod. 730/2016 "

Posted by on May 20, 2016

With regard to recurrent models 730 precompiled, an alert must be carefully managed is that relating to communications made by local welfare cases relating to refunds/health care costs.

The stability law 2016, paragraph 950, determined that for the purposes of the processing of tax returns and checks on expenses deductible and deductible charges, starting with the tax year 2015, and by 28 February of each year, institutions, and mutual aid societies having as their sole end welfare and supplementary NHS funds than in the previous year have obtained the certificate of inscription in the register of matching funds of the national health service must send to the IRS:

  • a communication containing data related to health expenses reimbursed as a result of contributions paid;
  • data related to health expenses reimbursed were not borne by the taxpayer.

Analyzing the information given in the Declaration of the year 2015 precompiled in the example section of the charges and their are, besides communications provided by the medical card System on the data of the health care provided in institutions ' communications 2015/speakers NHS or supplementary funds relating to refunds paid during the year.

For example from the precompiled statement might be the following situation:


Health expenses

MEDICAL CARD SYSTEM REPORTED EXPENSES for TICKET: € 202.00 amount

MEDICAL CARD SYSTEM REPORTED EXPENSES for visits or SPECIALIZED INTERVENTIONS: 1,087.00 amount €

The FUND _ _ _ _ _ _ _ CASH ASSISTANCE ASSISTANCE DIP AZ CONV (CF: _ _ _ _ _ _ _) ANNOUNCED a REFUND: 317.00 amount €


His precompiled statement is therefore proposed under item (rigo E1 – health expenses) the amount of the health expenses incurred NET than refunded during 2015, nondeductible by the taxpayer: the sample then euro 972.

As indicated in resolution No. 35/E/2007, based on the general principle of tax law that the burden is not deductible that has not actually incurred, the taxpayer is not entitled to deduct expenses reimbursed and may choose to act in two ways:

  1. subtract the amount of the health expenses the amount disbursed by the Fund in relation to the same;
  2. deduct the full amount of the health expenses, only to declare taxable income between separated the amount received.

The first solution is in line with what is proposed in the precompiled statement, while the second solution would be deductible expenses, including mileage in rigo E1, the entire healthcare expenditures incurred for then subject to taxation, in the model 730, D7 the amount reimbursed staff.

The instructions to build the model 730 include the indication under D, section II, (taxable income) rigo D7, taxes and charges refunded in 2015.

In particular, with the code "4" will be shown:

  • the amounts obtained as reimbursement of charges given right to a deduction and, in the year 2015, were subject to refund or restitution by third parties including the employer or institution.

For example, fall into such sums, as well as health expenses reimbursed the contributions, not capital expenditures compared with mortgages, paid in a tax year after the year in which the taxpayer has taken advantage of the deduction in relation to interest expenses without taking into account these contributions; Additionally, these sums are also the share of interest expenses for which the taxpayer has taken advantage of the deduction in preceding years, compared to loans for building restoration, referring to the amount of the loan not used to cover the expenses relating to the restoration.

Further situation to which you should pay special attention relates to the provision of refunds of charges deducted in previous years, such as in the case of health expenses incurred in the year 2014 and refunded even partially in 2015.

In the model 730 staff proposal is directly compiling precompiled D7, code "4" and the reference year 2014 with the refund amount provided by the assistance fund:


Taxes and charges refunded in 2015 and other incomes to separate taxation

PRESS RELEASE FROM _ _ _ _ _ _ _ _ _ CASH ASSISTANCE DIP AZ CONV (CF: _ _ _ _ _ _ _ _ _ _)-reimbursement for HEALTH CARE COSTS INCURRED in 2014:90.00 €

PRESS RELEASE FROM _ _ _ _ _ _ _ _ _ CASH ASSISTANCE DIP AZ CONV (CF: _ _ _ _ _ _ _ _ _ _)-reimbursement for HEALTH CARE COSTS INCURRED in 2014: amount 133.00 €


In this case the taxpayer should actually declare the amount of the refund received only if your model year 2014/2015, 730, brought in deduction entirely health expenditure incurred, gross then refund, received only in 2015.

In the event that the taxpayer has already taken into account the repayment in the Declaration model 730/2015, and deducted the expense already net of refunds, he shall not impose taxation the amount, "unwrapping" the proposal in the precompiled template.

by Sudha M

DA-PROFESS