The income campaign has been underway since last April 6, the doubt continues to exist year after year: Can home and life insurance be included in the tax return? And, if so, how much do they deduct?
Insurance expenses can be deducted in the income statement, but only if a series of requirements are met.
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Expenses for contracting insurance can only be deducted in the following cases
- Life insurance with a savings plan. They can be deducted, since they are taxed in the same way as pension plans. Those under 50 years of age may deduct a maximum of 10,000 euros; while those who are over 50 may deduct up to 12,500 euros.
- Conventional life insurance. It cannot be deducted, except in the case of autonomouswhich may be deducted a maximum of 500 euros.
- Life insurance linked to the mortgage. You can deduct up to 15% of the amounts allocated to the purchase of the habitual residence with a maximum limit of 9,040 euros.
- Home insurance. Expenses may only be deducted if the taxpayer contracted the insurance at the same time as signing the mortgage or the restoration of the property and as long as it was done before 2013. If so, the insurance must be associated with the acquisition of the habitual residence.
- Health insurance. In general terms, self-employed workers or entrepreneurs who have contracted policies, both for themselves and for their family, may deduct the total cost. Employed workers will only be able to deduct the insurance if they negotiate it with their company.
- Vehicle insurance. Only those who are self-employed and buy and register the car for work purposes can enter it in the income tax return.
What box should you check on the income statement to deduct this insurance?
In the event that the taxpayer is the owner of a property and a home insurance can be deducted from the income, You must do it as a cost for investment in habitual residence. For it, You will have to go to boxes 547 and 548, where the deduction for investment in habitual residence is entered.
Those who have life insurance linked to the mortgage can deduct it in box ‘0200, called ‘Insurance Premium’which is found in the direct estimation regime section.
When the life insurance is linked to a savings plan, it will go in box 25 of the income statement. In addition, there is a section of the insurance relief linked to the mortgage loan that will depend on each autonomous community.
The self-employed who choose to deduct health insurance must also do so in box 200.
Basic tips for filing your income tax return
- Check the draft carefully.. Check all the personal data contained in the draft what Hacienda makes it easy for you and checks, one by one, that they are okay. Note that if there have been changes in your life, because you have married or divorced, because you have moved flat or because you received the inheritance from your grandmother, they are well collected.
- Check if you can deduct yourself for housing. If you own a flat remember that on January 1, 2013 the deduction for investment in primary residence was abolished but all previous owners can continue to enjoy it under the same existing terms and conditions.
- Subsidies and increases in assets. It is important to remember that the subsidies must be included in the income statement as if they were a capital gain, because if not, the Tax Agency can make a parallel statement and sanction you. And if shares have been sold, the recorded profit or loss must also be reflected.
- Check available deductions. Check the catalog of state and regional deductions to see which ones you are entitled to.
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