📘 What are tax deductions?
Tax deductions are amounts that can be directly subtracted from the calculated tax, reducing the IRS payable or increasing the refund.
These deductions arise from household expenses in essential areas, but they are subject to legal limits.
💰 Main categories and their limits
🧾 General household expenses
- Deduction of 35% of everyday expenses
- Limit: €250 per taxpayer (or €500 per couple)
Includes groceries, fuel, utilities and other regular expenses.
🏥 Health expenses
- Deduction of 15% of expenses
- Limit: €1,000 per household
Includes medical consultations, medication, health insurance and other healthcare services. Expenses taxed at 23% VAT require a medical prescription.
🎓 Education and training expenses
- Deduction of 30% of expenses
- Limit: €800 per household
May increase:
- Up to €1,000 or €1,100 in specific cases (displaced students or inland areas)
Includes tuition fees, schoolbooks and certain student accommodation costs.
🏠 Housing expenses
- Rent: 15% deductible up to approximately €600
- Mortgage interest (older contracts): limit up to €296
Increases may apply in specific situations, such as relocation to inland areas.
👵 Care home expenses
- Deduction of 25% of expenses
- Limit: €403.75
Applies to home care, nursing homes and elderly support institutions.
👨👩👧 Other relevant benefits
- Alimony: 20% with no limit
- Benefits for dependants and disability with fixed legal amounts
⚠️ Overall deduction limit
In addition to category-specific limits, there is an overall cap on tax deductions, which varies according to taxable income. This means that even with significant expenses, you may not be able to deduct the full amount.
📈 Strategies to maximise your tax benefit
- Validate all invoices on e-Fatura within the deadline
- Ensure expenses are correctly classified
- Plan expenses throughout the year
- Monitor the overall deduction cap
✅ Conclusion
Understanding deduction limits is essential for efficient tax management. Small details —such as proper invoice validation and correct expense classification— can make a significant difference in your final tax outcome.
🤝 How Nominaurea can help
Nominaurea supports individuals and businesses in tax optimisation by providing:
- Personalised analysis of applicable deductions
- Validation and correct classification of expenses
- Strategic tax planning
- Full IRS support
With a professional and results-driven approach, we help maximise your tax benefits with complete confidence.
