Income Tax Declaration: Choosing Between Form 730/2024 and Income Tax Return, Understanding the Differences

Income Tax Declaration 2024: Choosing Between Form 730 and Form Redditi PF

The 2024 income tax declaration has been in full swing since May 20th, when it became possible to submit Form 730 or Form Redditi to the Revenue Agency.
But which of the two forms is better to choose? What is the convenience in one case or the other?

In general, Form 730 is intended for employees and retirees.
These are individuals who have a tax substitute, which is why the Revenue Agency recommends Form 730 for them (the tax substitute can directly adjust the tax balance in the paycheck, whether it is a debt or a credit).

On the other hand, Form Redditi PF (formerly known as Unico) is usually used by VAT holders or those who have to declare incomes and other proceeds that cannot be declared with Form 730.

Every taxpayer who is a fiscal resident in Italy is obliged to annually file a declaration of the incomes received in the previous tax year.
With the 2024 declaration, incomes earned in 2023 will be declared.

Who Should Use Form 730

Form 730 is commonly referred to as the income tax declaration for employees and retirees.
In 2024, the possibility of using pre-filled or regular Form 730 applies to subjects who are:
– Pensioners or employees (including Italian workers operating abroad, whose income is based on the annually defined conventional remuneration).
– Individuals who receive substitute income for dependent work (e.g., wage integrations, mobility allowances).
– Members of production and labor cooperatives, service cooperatives, agricultural cooperatives, first-stage agricultural transformation cooperatives, and small fishing cooperatives.
– Catholic Church priests.
– Constitutional judges, national parliamentarians, and other elected public officials (regional, provincial, municipal councilors, etc.).
– Individuals engaged in socially useful work.
– Workers with fixed-term contracts for less than a year.
– School staff with fixed-term contracts, who can turn to the tax substitute or a tax assistance center (Caf) or an authorized professional.
– Workers with only coordinated and continuous collaboration incomes.
– Agricultural producers exempt from submitting the substitute tax declaration (Form 770), Irap, and VAT.

Read also [Who has to file the 2024 income tax return?](https://examplelink.com)

One can use Form 730, either pre-filled or regular, if in 2023 they received:
– Income from employment or similar sources.
– Income from land or buildings.
– Capital income.
– Self-employment income not requiring a VAT number.
– Other incomes subject to separate taxation.

Filing the 2024 Form 730 on the Revenue Agency’s portal or through Caf and accountants has several significant advantages, including the possibility of receiving Irpef refunds directly in the paycheck or pension payment.

Likewise, if a tax debt arises from the income tax declaration, the due taxes will be directly withheld from the salary or pension.
For those with a high tax debt, to avoid the withholding in the paycheck, they can opt for installment payments, or submit Form Redditi PF and pay the taxes using Form F24 without unpleasant surprises in the paycheck.

Read also [Income tax declaration starts with the new simplified 730 for 2024, here’s what changes](https://examplelink.com)

Who Should Use Form Redditi PF 2024 (formerly Unico)

Form Redditi PF is more complex compared to Form 730/2024 (however, this year, for the first time, it is also available in pre-filled mode).
This form becomes residual this year, as it is now mandatory only for VAT holders, while Form 730 has been enriched with the W section to declare incomes that previously required the RW section of the Redditi form.

Form Redditi PF can be used by almost all taxpayers, but in some cases, its use is optional, while in others, it’s mandatory.
One disadvantage is that for those who have a credit from the Treasury, the times to obtain refunds are generally longer compared to those using Form 730/2024.
However, this drawback is offset if the accrued credits are used for offsetting.

Unlike Form 730, taxpayers required to use Form Redditi PF 2024 – usually called the income tax declaration for VAT holders – are those who in 2023 received:
– Business incomes, including participatory forms.
– Self-employment incomes.
– Various incomes (listed in article 67 of the Tuir, including those declarable with Form 730).
– Capital gains from the sale of qualified and unqualified participations or from the sale of unqualified participations in companies or entities located in countries or territories with privileged taxation, whose securities are not traded on regulated markets.
– Incomes from trusts as beneficiaries.
– Land incomes from land and buildings owned in Italy.
– Capital incomes.
– Employment incomes (including assimilated incomes and pension incomes).

For deceased individuals, a distinction must be made.
For those whose death occurred before September 30, 2024, Form 730/2024 can be submitted.
For those who died after this date without submitting the income tax declaration for incomes earned in 2023, heirs can proceed with submitting Form Redditi PF 2024.

When Submitters of Form 730 Must Also Submit Form Redditi PF

There are cases where taxpayers submitting Form 730/2024 are required to also submit specific sections of the 2023 Redditi form.

Remember, the taxpayer can choose to submit only Form Redditi PF 2023, indicating all incomes, deductions, and tax reliefs they intend to claim.

Three added sections can be integrated:
– RM for incomes subject to separate taxation.
– RT for capital gains and incomes.
– RW for fiscal monitoring, Ivie, and Ivafe.

Taxpayers who received in 2023 interests, prizes, and other proceeds from bonds and similar securities, as well as end-of-service benefits and profits from occasional boat rental subject to a 20% substitute tax, should also submit the RM section of the 2023 Redditi PF form.

Additionally, those declaring compensation from private lessons and tutoring received by teachers at all school levels who opt out of ordinary taxation should also submit it.

Those who realized capital gains from unqualified participations in 2023 and intend to carry them over to subsequent years can submit the RT section in addition to Form 730/2024.
The RT section must also be submitted to report data concerning the valuation of participations carried out in 2021.

The RM and RT sections of the 2024 Redditi form, along with the cover page, must be electronically filed by the deadline for submitting the declaration.

Deadlines for Form 730 and Form Redditi PF

One of the crucial (if not fundamental) differences between Form 730/2024 and Form Redditi (formerly Unico) concerns the deadlines to be met.

Form 730/2024 can be submitted by September 30, 2023, the same deadline for those using pre-filled or regular Form 730, or relying on the tax substitute for submission.

On the contrary, the deadline for submitting Form Redditi PF 2024 with additional sections (RW, RM, and RT) is set for October 15th, and the submission must be exclusively in electronic format.

Remember that for those who miss the September 30 deadline for submitting Form 730/2024, they can still file the declaration on time by submitting Form Redditi PF by October 15th.