The possibility of declaring and deducting invoices for expenses with support services is intended to alleviate the burden on families. And, although the maximum deductible amount is not high, it is always a help to the budget in many homes.
However, it is important to know that there are rules. At the E-Invoice: homes and other support provided to ancestors and other family members cannot be declared by anyone at any time. Being aware of the (im)possibility of declaring these invoices can save you from filling errors and repetitions in submitting the IRS declaration.
E-Invoice: homes and beyond
The first thing that is important to know is that expenses do not necessarily have to respect only homes. The law says that you can deduct from the IRS the expenses related to nursing homes, home care and elderly support institutionsso keep all proof of these expenses well.
However, in order to benefit from the deduction, they must correspond to services or purchases of goods exempt from VAT or subject to a reduced rate. And the entity providing the service must communicate the invoices to AT through the E-Fatura.
But for the invoices to be assigned to the right category in E-Fatura, the institution you pay must be duly registered as a provider of these services. Otherwise, Finance will not believe you. That is, the entity issuing the invoices must have the Code of Economic Activity (CAE) for social support for elderly and disabled people, with or without accommodation.
Not only your invoices count
This is, in a way, an exceptional situation for E-Fatura. Homes, home care services and expenses with institutions that support the elderly do not have to be declared by the beneficiary who used them.
In fact, the Tax Authorities are aware that, in many households, the elderly and people with disabilities are dependent on their family members. And that these, among other things, manage the accounts and assume a large part of the expenses.
Therefore, and in accordance with the article 84 of the IRS Codeyou or a family member can declare this type of invoices, even if the beneficiary is not considered dependent on the taxpayer who declares the invoices, but in this case there are conditions that must be met.
In a simple way, it can be said that the NIF to be placed on the invoice will depend on whether or not the beneficiary is part of your household.
If the person you are dependent on is listed in the AT as part of your household, the invoices must include the TIN of the dependent beneficiary. They still count towards the deduction of the taxpayer who declared them.
If, on the other hand, the dependent does not appear in the AT as part of your household, the invoices for the same expenses incurred with the parents, uncles, grandparents or siblings (i.e. with ascendants or collaterals up to the 3rd degree) must include your NIF, but must contain the beneficiary’s name and NIF in the description. However, take note that to be able to declare them in your IRS, beneficiaries cannot have monthly income higher than the national minimum wage.
The imposition of limits on deductions made with invoices happens in practically all E-Fatura categories and households are no exception.
For Finance accounts, only 25% of total expenses that you had last year with home care services, residences for disabled citizens, homes and institutions that support the elderly – with you, with dependents or with close family members – can count towards the deduction.
And the State imposed a maximum deduction limit of 403.75 euros per year. That is, you can deduct 25% of everything you spent and receive up to a maximum of 403.75 euros back.
E-Fatura warning: only one of the children can deduct expenses
The rule may seem unnecessary, but it is essential to prevent the same invoice from being declared over and over again by several taxpayers. The law dictates that each invoice relating to nursing homes, home care or institution for the elderly that is enjoyed by a family member can only be declared once.
Thus, seniors who benefit from these services and have several children will have to choose a single child to declare that invoice. They will not be able to issue the invoice to everyone or ask for the amount to be divided and issue a partial invoice for each child, so that each one declares it to their IRS.
This means that, even if all the children support the expenses, only one of them will be able to declare it for deduction at the IRS. Just as only one of them will receive the benefits resulting from that expense.
How to declare household invoices?
But remember that the entity that provided the service must be registered with the corresponding CAE.
Thus, if you have to pay for any of the services above, the expenses will automatically appear on your pre-filled IRS statement, in Annex H – table 6-C.
If, despite this, you have paid expenses whose value is not considered, you can always add them by hand, but you will need to have all the documents. But don’t forget to pay attention, because if, in the meantime, the merchants / managers of the institutions declare the same invoice, there will be a case of double billing in the E-Fatura.
We return to the categorization of expenses: as with other documents, expenses with nursing homes and similar services may not appear automatically catalogued, so you will have to go to the Portal and authenticate yourself (with your credentials) to have access to pending invoices.
Once on the pending invoices page, select the invoices related to household expenses. Choose the correct option that appears on the right side, under icons.
One last note, do not forget that the deadline for validating pending invoices in E-Fatura ends February 25, 2023.
Article originally published in July 2019. Last updated in December 2022.