Filing Tax Form 730/2024: How to Report Education Contribution Redemption

Tax Benefits for University Degree Redemption Contributions

Tax benefits are available for contributions made for the redemption of university degrees.
These contributions can be indicated in the tax return form 730/2024 in order to increase the years of paid social security contributions.

How University Degree Redemption Works

University degree redemption allows graduates to pay INPS contributions for their years of study for pension purposes.
The years that can be redeemed include various academic degrees such as bachelor’s, master’s, and post-graduate degrees, provided they are part of the official educational path.

It is important to note that only years within the standard duration of the course can be redeemed, and not those exceeding the regular period.
Additionally, individuals can choose to redeem only specific years if they are close to retirement age.

Declaring Redemption Contributions in Form 730/2024

The procedure to declare university degree redemption contributions in the 730/2024 form varies depending on whether the contributor is the graduate, a dependent person (e.g., a parent), or the employer facilitating the process.
Deductions or tax credits can be obtained based on these different scenarios.

Deducting Contributions in Form 730/2024

University degree redemption contributions can be deducted from the total income, following the guidelines provided by the Italian Revenue Agency (Agenzia delle Entrate).
These deductible amounts should be included in section E21 of the form, named “Contributi previdenziali e assistenziali,” and are deductible up to the total income.

The deduction lowers the taxable base and may affect the applicable tax rate.
It is crucial to accurately report these contributions to benefit from the tax advantages.

Redemption Contributions for Dependents and Employers

If the degree redemption contributions are made by a third party on behalf of a dependent individual, such as a parent, the deductibility rules change slightly.
The person who made the payments can claim a tax credit of 19% of the total amount for that tax year.

In cases where the contributions are made by an employer to support an employee’s degree redemption, the situation differs, as these expenses are deductible for IRES purposes and not for IRPEF.

Considerations for Foreign Degrees

Degree redemption for degrees obtained abroad follows the same principles, provided that the degrees are recognized in Italy.
The redemption process can only be carried out for degrees that are valid in the Italian educational system.

Calculating Redemption Costs with INPS Simulator

INPS offers a convenient simulator on its website to help individuals calculate the costs of degree redemption based on various factors such as the period of redemption and employment status.
This tool guides users in estimating the redemption expenses accurately.