Americans in Italy: Your US Tax Return Checklist 🇮🇹
What documents do US taxpayers in Italy need to file? You’ll need your Certificazione Unica (CU), Italian tax return (Modello 730 or Modello REDDITI PF) if filed, proof of taxes paid to Agenzia delle Entrate, travel records showing time in each country, and foreign account information if balances exceeded $10,000 USD at any time during the tax year.
Key facts for US taxpayers in Italy:
- Both countries tax worldwide income; the US-Italy tax treaty prevents double taxation but doesn’t eliminate filing requirements
- June 15 automatic filing extension applies if you live outside the US on the regular April deadline
- Italian tax year aligns with the US calendar year (January 1 – December 31)
- FBAR required if total foreign accounts (including Italian bank accounts, pension funds, investment accounts) exceeded $10,000 USD at any point during the tax year
- Italian retirement accounts (fondi pensione, previdenza complementare) have special treaty treatment
- Italian social security contributions (INPS) do NOT qualify for US tax credits
- Foreign Tax Credit often provides better results due to Italian tax rates, though this requires analysis of each individual specific situation
📋 Filing Status & Household Information
Your filing status affects tax rates, deductions, credits, and multiple downstream decisions.
What you need:
- Full legal names (must match Social Security cards exactly)
- SSN or ITIN for you, your spouse, and dependents
- Dates of birth
- Filing status (Single, Married Filing Jointly, Married Filing Separately, Head of Household)
- Dependent relationship details
✈️ Travel Calendar & Addresses
Critical for reporting requirements and for determining eligibility for provisions such as the Foreign Earned Income Exclusion.
What you need:
- Dates of entry to and exit from the US and Italy
- Workdays vs non-workdays (if tracking physical presence)
- All addresses during the tax year, with move-in and move-out dates
More information on maintaining a Travel Calendar
💼 Employment & Income Information
For Employees:
- Certificazione Unica (CU) (Single Certification) (Italian equivalent of US W-2)
- Payslips (buste paga) from January to December showing cumulative totals
- Bonus (tredicesima, quattordicesima), or supplemental compensation statements (if any)
- Benefits documentation (buoni pasto, auto aziendale, etc.)
For Self-Employed / Freelancers (Partita IVA):
- Modello REDDITI PF (Personal Income Tax Return) with relevant quadri (sections)
- Records of gross income and expenses
- Fatture elettroniche (electronic invoices) issued
- Home office details (if applicable)
- IVA (VAT) records if registered
- Quarterly advance payment records (acconti d’imposta)
Note for Self-Employed Individuals:
If you’re self-employed, you may need a Certificate of Coverage from INPS to avoid paying US self-employment tax in addition to Italian social security contributions. This certificate proves you pay social security and Medicare taxes to Italy, making your self-employment income exempt from self-employment tax in the US under the US-Italy totalization agreement. You can obtain it from:
- Istituto Nazionale della Previdenza Sociale (INPS)
- For more information, visit the Social Security Administration’s international programs page.
Other Income:
- Interest and dividend statements (Italian and US sources)
- Rental income and expenses
- Pension income (pensione)
- Capital gains or losses
- Cryptocurrency transactions
Common mistake: Non-US income is still generally reportable on a US return.
🌍 Foreign Taxes Paid
Required to evaluate and calculate the Foreign Tax Credit.
What you need:
- Modello 730 (Simplified Tax Return) or Modello REDDITI PF (Personal Income Tax Return) (if filed)
- Certificazione Unica (CU) (Single Certification)
- Ricevuta di Versamento (Payment Receipt) or F24 payment forms showing taxes paid to Agenzia delle Entrate
- Records of advance payments (acconti d’imposta) if applicable
- Regional and municipal tax records (addizionale regionale/comunale)
Important decision: Foreign Tax Credit, Foreign Earned Income Exclusion, or a combination. For most Italy residents, Foreign Tax Credit provides better results due to Italian tax rates, though this requires analysis of each individual specific situation.
Timing note: You can claim taxes paid or accrued. This choice affects which year’s Italian taxes offset which year’s US taxes.
💰 Deductions & Credits
Common deductions:
- Foreign housing costs (rent, utilities, insurance)
- Student loan interest (US loans only)
- Retirement contributions (401k, IRA – Italian pension contributions may have treaty benefits)
- Charitable contributions to US-qualified organizations (Italian charities generally don’t qualify)
Common credits:
- Child Tax Credit / Credit for Other Dependents
- Foreign Tax Credit (Italian IRPEF and regional/municipal taxes)
- Education credits (if applicable for US institutions)
What you need:
- Receipts and supporting documentation
- Rental agreements (contratto di locazione) and housing expense records
- Pension contribution statements (fondi pensione)
- Charitable donation receipts (verify US qualification)
🏦 Foreign Bank & Financial Accounts (FBAR)
An FBAR is required if the aggregate value of all foreign accounts exceeded $10,000 USD at any time during the year.
What you need for each account:
- Account number and IBAN
- Financial institution name and address
- Account type (conto corrente, conto deposito, fondo pensione, conto titoli)
- Maximum value during the year in EUR (converted to USD using Treasury rates)
Notes:
- Joint accounts and signature authority still count
- Pension funds (fondi pensione) must be reported
- Investment accounts (conti titoli) must be reported
- Business accounts where you have signing authority must be reported
- PostePay and similar prepaid cards may need reporting if balances are significant
More information on FBAR requirements
📊 Foreign Financial Assets (Form 8938)
Separate from FBAR, with higher thresholds and overlapping but distinct rules.
What you need:
- Bank and investment account details (similar to FBAR)
- Foreign stock or securities held outside accounts
- Italian pension fund statements (fondi pensione)
- Foreign partnership interests
- Foreign-issued life insurance or annuities (polizze vita)
More information on Form 8938 requirements
🏠 Foreign Rental Real Estate
What you need:
- Purchase date and price (in EUR and USD)
- Current fair market value
- Rental income and expenses (if applicable)
- Sale details (if sold): proceeds, adjusted cost base, capital gain calculation
- Mortgage and financing information
- Atto di compravendita (purchase deed) or rogito notarile
- IMU (Imposta Municipale Unica – municipal property tax) records
- Condominium fees (spese condominiali)
Reminder: US depreciation and capital gains rules differ from Italian rules.
🇮🇹 Italian Retirement Accounts & Social Security (Special Treatment)
Italian retirement accounts have unique US tax treatment:
What you need:
- Annual pension fund contribution statements (fondi pensione complementare)
- Pension account balances (December 31)
- INPS contribution records (contributi previdenziali)
- Pension distribution statements (if receiving payments)
- Employer pension scheme details (previdenza complementare aziendale)
- TFR (Trattamento di Fine Rapporto – severance pay) documentation
Key points:
- Italian pension fund growth can be tax-deferred in the US if proper treaty elections are made
- Employee contributions may be deductible on US return under treaty provisions
- Employer contributions are generally not taxable income in the US
- Italian state pension is taxable on both US and Italian returns
- INPS contributions do NOT qualify for US tax credits
- TFR (severance pay) has special US tax treatment when received
👶 Dependents & Education
For each dependent:
- SSN or ITIN
- Months lived with you
- Childcare provider details (name, address, Codice Fiscale)
- Education expense records (Form 1098-T from US institutions)
- International or private school tuition records
- Assegni familiari (family allowance) information (Italian benefit is not taxable in the US)
Note: Italian university or international school tuition does NOT qualify for US education credits in most cases.
🏥 Health Insurance
What you need:
- Proof of health insurance coverage (Servizio Sanitario Nazionale or private insurance)
- Private health insurance details (if applicable)
- Premium amounts paid
💳 Other Important Items
- Prior year US tax return
- IRS notices or correspondence
- Estimated tax payments made to IRS
- US state tax information (if you maintained state residency)
- Pension fund statements (fondi pensione)
- Codice Fiscale (Italian Tax ID)
- Permesso di soggiorno (residence permit) documentation
- Record of any tax treaty elections made in prior years
- RW quadro documentation (foreign asset reporting on Italian return)
✅ Ready to File?
Organizing these items upfront saves time and reduces the risk of missed reporting or penalties, even in years with little or no tax due. The US-Italy tax relationship involves complex treaty provisions that require professional expertise, particularly for retirement accounts, real estate, and the unique TFR system.
🔎 Quick Reference
- Italy Tax Year: January 1 – December 31
- Italian Tax Filing Deadline: June 30 (Modello 730) or November 30 (Modello REDDITI PF)
- US Tax Year: January 1 – December 31
- US Filing Deadline: June 15 (automatic extension for taxpayers abroad)
- Extended US Deadline: October 15 (with extension)
- FBAR Deadline: April 15 (automatic extension to October 15)
- USD/EUR conversion: Use Treasury Department rates or year-end rates consistently
Documents specific to Italy:
- Certificazione Unica (CU) (Single Certification)
- Modello 730 (Simplified Tax Return)
- Modello REDDITI PF (Personal Income Tax Return)
- Busta Paga (Payslip)
- F24 (Unified Payment Form)
- Atto di Compravendita/Rogito Notarile (Purchase Deed)
- Fattura Elettronica (Electronic Invoice)
- Ricevuta di Versamento (Payment Receipt)
⚠️ Every individual income tax situation is unique and may involve nuances that are not obvious from general guidance. You should review your specific facts with a qualified tax professional before making filing decisions or taking action based on this information.
