How the Modello 730 works

The Modello 730 is the income tax return designed for employees and pensioners who have a withholding agent able to carry out the tax adjustment (their employer or pension body). Unlike the Modello Redditi, it does not require you to file with the Agenzia delle Entrate yourself: a CAF or an authorised professional handles it, or the taxpayer does so through the pre-filled return platform. The return gathers the previous year's income and any deductible or allowable expenses incurred (medical costs, mortgage interest, renovation works, social security contributions paid, and so on). If the calculation results in a credit, the refund is paid through the withholding agent in the following months' payslips; if it results in a debt, it is withheld the same way. The main advantage of the 730 over the Modello Redditi is speed: because it is not a 'single balance' form filed directly with the Agenzia delle Entrate, refunds or charges are generally processed more quickly.