The role of Corporate Welfare in relation to school expenses is one of the most requested topics today among adults of parental age (with school-age children) and therefore with an age between 40 and 50 years old on average.
With the rising cost of education, many families are looking for ways to reduce the financial burden by taking advantage of tax benefits , such as those offered by Corporate Welfare.
So let's see what school expenses are actually deductible or reimbursable through Welfare for employees with dependent children and what the tax legislation says about it.
Are education expenses deductible or reimbursable by Welfare?
When we talk about school expenses in relation to Corporate Welfare, it is important to make a distinction between tax deductions and refunds.
Deductions are tax benefits recognized by the State, which allow you to lower your taxable income by recovering a percentage of the expenses incurred.
What Corporate Welfare can play a crucial role in, instead, are the direct reimbursements of certain expenses, including costs related to children's education.
Which school expenses are reimbursable by Corporate Welfare and which are not? All areas covered
According to Italian tax law, school expenses incurred for attending nursery schools, primary schools, lower and upper secondary schools are deductible at 19%, up to a maximum of 800 euros for each child.
As we will see better later, this deduction can be requested in the tax return, using the 730 or PF Income form, or by taking advantage of the benefits of the Welfare plan, if provided by the company.
The range of educational expenses that can be reimbursed through Corporate Welfare obviously varies based on the type of plan offered by the company.
However, there are some general guidelines that help distinguish which expenses can be covered and which cannot.
Deductible education expenses include:
- School fees
- School fees , such as enrollment and attendance fees
- Mandatory contributions , requested by educational institutions for additional services
- Voluntary contributions and payments as donations, requested by schools, but which remain within the limits established by the regulations
- Campus
- Textbooks and school supplies
- Attendance at kindergartens and nurseries, nursery schools, primary and secondary schools
- After school
- Babysitter
- Study support
- School canteen
- Extracurricular activities
- University education and post-graduate specializations
- In some cases, language courses or other educational or sports activities related to school
- School trips
However, expenses for stationery, school clothing, books and teaching materials, technological devices (such as computers or tablets) and/or private lessons are not included in the deductions.
Obviously, it is up to each individual company to establish specific conditions and/or expand the range of expenses covered; for this reason, it is essential that employees always check the conditions offered by their Welfare plan.
Corporate Welfare is therefore proposed as a concrete form of parental support , designed for the family in all its aspects and not only from a monetary point of view.
One more opportunity to promote well-being , a correct work-life balance and inclusiveness in the company.
Many Italian companies already offer their employees welfare plans, which include the possibility for parents to obtain reimbursement for a portion of the school expenses incurred for the education of their dependent children, through dedicated platforms or through the company itself, without having to wait for the tax return.
What does the tax law say about the reimbursement of education expenses and what is the role of Welfare?
Italian tax law provides several benefits for families, including the possibility of deducting some school expenses in the tax return.
However, Corporate Welfare offers an additional benefit, allowing employees to obtain immediate reimbursement for certain education-related expenses, with benefits for both the employee and the company .
Corporate Welfare is regulated by specific provisions, set out in the Consolidated Law on Income Tax (TUIR) , which allows companies to offer services or reimbursements exempt from taxation.
In fact, school expenses reimbursed through Welfare do not contribute to the formation of the worker's taxable income, thus offering a significant tax advantage.
School expenses & Welfare: limits and exemption maximums
It is important to remember that, even in the case of reimbursements obtained through Corporate Welfare, there are limits and maximums to be respected , which can be established by companies on an annual basis or depending on the characteristics of the individual Welfare plan offered.
As regards tax deductions, as previously mentioned, the maximum deductible expense limit per child is currently set at €800/year, but it may be subject to continuous changes , so it is advisable to check for any regulatory updates every year.
Can everyone benefit from reimbursement of school expenses by taking advantage of Corporate Welfare?
The reimbursement of school expenses through Corporate Welfare is obviously reserved for employees who work for companies that offer this type of benefit.
In this case, all employees with dependent children who attend nursery schools, primary schools, secondary schools and, in some cases, university can benefit from the reimbursement.
The conditions for accessing reimbursements may vary, but generally it is sufficient to present documentation relating to the expenses incurred (e.g. invoices or payment receipts) to obtain the reimbursement, within the limits established by the Welfare plan.
Corporate Welfare for Schools: Reimbursement Only or Purchase Bonus Also?
Corporate Welfare can be used both for the reimbursement of school expenses already incurred, and for the direct purchase of educational services through the associated platforms.
Some companies may in fact offer the possibility of accessing vouchers or purchase vouchers for school or training services, which employees can use to directly pay school fees or other related services.
This solution allows workers to save on educational costs without having to pay the expenses in advance , representing a further advantage.
Income tax return and 730: how to proceed with educational expenses deductible under Welfare?
School expenses reimbursed through Corporate Welfare cannot be deducted again in the tax return.
The reimbursement obtained through Corporate Welfare cannot in fact be cumulated with the tax deductions provided by the State.
Therefore, the employee will have to choose whether or not to take advantage of the Company Welfare, to obtain the reimbursement, or whether to deduct the school expenses at a later time, within the tax return.
It is therefore essential to keep track of expenses already reimbursed to avoid making mistakes when filling out the 730 form.
Corporate Welfare represents a valuable resource for all employees with children, allowing them to obtain reimbursements for the majority of educational expenses, which would otherwise weigh entirely on the family budget.
Although there are limits and maximums to respect, the correct combination of Welfare and tax breaks can offer families valid support to manage the costs related to education.