Car Insurance Deduction in the 730/2024 or Income Tax Return, When Can You Do It?

Can Auto Insurance be Tax Deductible?

In the past, it was possible to deduct car insurance from taxes, specifically the contribution to the National Health Service.
However, since 2015, this type of tax deduction from personal income tax has been discontinued.

What Can Be Deducted from Car Insurance in the Tax Return?

Currently, it is still possible to deduct some portions of car insurance, but only for non-compulsory items unrelated to basic auto liability insurance, which everyone is required to pay.

Expenses that can be deducted at 19% from the 730/2024 form or the Redditi model include:

• Life and accident insurance policies with agreements or renewals predating 2001;
• Death or disability insurance contracts entered into or renewed after December 31, 2000;
• Insurance against the risk of impairments and disabilities with conditions of non-self-sufficiency in performing normal daily life activities.

It’s important to note that basic auto liability insurance cannot be deducted from the tax return.
However, choosing to enrich one’s insurance with additional coverages may qualify for the 19% deduction.
This deduction applies only to the specified additional policies eligible for deduction and not the entire premium paid for auto insurance.

Limitations on Deductible Amounts

There are spending limits for the additional coverages eligible for the 19% deduction:

• Up to €760 for life and accident insurance policies with agreements or renewals predating 2001;
• Up to €1,291.14 for insurance against the risk of impairments and disabilities with conditions of non-self-sufficiency in performing normal daily life activities.

How to Benefit from the Deduction?

To qualify for the tax relief, the policyholder and the insured person must be the same individual, regardless of who the beneficiary is.
The deduction can also be claimed if the policy is taken out for a dependent family member.

The deduction can be indicated in both the 730/2024 form and the Redditi Pf 2024 model.
In the 730 form, it should be reported in rows E8 to E12 using the following codes:

• Code 37 for non-self-sufficiency risk policies;
• Code 36 for death or permanent disability risk policies;
• Code 36 for life and accident policies.