Tax considerations: Which Bonuses and Benefits are Tax-Free and Which Should be Reported on Your 2024 Tax Return?

Are State aids and bonuses always tax-free?

Are State aids and bonuses always tax-free? Should they be included in the 2024 tax return for the payment of Personal Income Tax (PIT)? Taxpayers who have had incomes during 2023 are required to file the 2024 tax return, including all sums received on which taxes are due.

What is the purpose of the 730/2024 form?

With the 730 form or the Redditi PF form, the taxpayer declares to the Tax Office all the incomes received in the previous tax year (in the case of the 2024 730 form, incomes received in the 2023 tax year).
Through the tax return, the PIT (or the substitute tax in the case of flat-rate taxpayers) is recalculated on the total income.

Usually, the PIT is withheld from the paycheck, pension, or any allowances provided by INPS.
However, it may happen that the withholding agent does not apply the correct tax rate as they may not be aware of the total income.
In any case, any taxes already paid during the year are deducted from the due PIT.

Bonuses and State aids

Often, the bonuses and aids provided by the State are not taxable.
This is precisely due to their nature as “aids”.
When these tax-free bonuses are received, they do not need to be reported in the tax return because PIT is not due on them.

For example, this applies to disability pensions and care allowances which, due to their supportive nature, do not contribute to the taxable income and, therefore, are non-taxable.
Hence, they should not be reported in the tax return.

On the other hand, the ordinary disability allowance is different: it is considered a benefit equivalent to a pension, it contributes to the income, is subject to PIT, and therefore must be declared in the tax return.

Is the supplemental treatment tax-free?

The supplemental treatment granted to employees and similar workers with annual incomes up to €15,000 (in some cases up to €28,000) is not taxable and therefore, tax-free.

However, being a bonus aimed at reducing the tax burden and being granted only under certain conditions, its adjustment is made in the tax return with the 730 form.
Therefore, although the received amount is not taxed, it must be indicated in section C14 of the 730 form.

Naspi and Dis Coll subject to PIT

Naspi and Dis Coll are unemployment benefits granted respectively to employees and collaborators who have involuntarily lost their jobs.

Both benefits, in addition to the monthly allowance, also include contributory coverage.
Both are subject to PIT.
In this case, INPS acts as a withholding agent deducting PIT directly before the payment (as with the paycheck).

The amounts received as unemployment benefits must be included in the 730 form since INPS issues a regular Single Certification at the beginning of the year.

Does the single allowance count as income?

The single allowance is an economic benefit to support families with minor and young adult children up to 21 years of age.
The amount paid depends on the family’s ISEE and is disbursed directly by INPS to the beneficiary.

The amount received as a single allowance does not affect the calculation of the taxable income and is, in fact, tax-free, similar to family allowances.
Therefore, they should not be included in the tax return.
The Single Certification provided annually by INPS for these amounts clearly states that they are exempt income and is for informative purposes only, not for declaration.