Thank you for this! Question - are you paying your taxes just to Italy or also some to the US? Or do you just have to file in the US while only paying Italy? Grazie.
All US citizens must file a tax return even if they don't live in the US. So, yes, I always file both countries. Italy and US have a treaty preventing double taxation but its benefits can be limited. You can read more about it here: https://www.cpasforexpats.com/post/us-italy-tax-treaty
I love how Taxes was number one. I guess because it's tax season?! I'm generally a pretty anxiety-free person but the Italian taxes, HOO BOY! For the first time in my life I hired an accountant and even then it was a nightmare to navigate. It's been 4 months of back and forth and they're still not filed. And let's see if the Agency actually agrees with the accountant, apparently they come back asking for more quite often.
Thank God I live in Milan and I can bike around instead of drive. It's surprising that the exam is so strict because nobody actually follows what they've studied as illustrated by their driving lol.
Yeah, the tax thing is a rompicoglioni 😟 My Commercialista told me a few years ago that I am owed a tax refund from 2021 of a few thousand euro. He's been telling me for a few years that I will get it "any day". HA! No sign of it so far.
You are so right about the need for the driver's license here. For one year almost, I drove illegally to my driving school (with their knowledge of the law and having a photo copy of my local ID, thus missing the opportunity to inform me that I was driving illegally before I started). After I discovered the law, I asked my instructors and they both said, "I know." um, thanks. One even said, "do not worry, police do not give fines to Americans." WT? But when I retorted, "ok, so if I am stopped, I should tell the officer that my driving instructor said that Americans are exempt from the laws in Italy?" um, no... he said, and I said, "please do not take risks on my life for me."
In any event, the driver's test has now become more difficult. It is no longer 40 questions, missing 4 max to pass. It is now 30 questions, missing 3 max to pass! There is a Facebook group to help people "Help! I need my Foglio Rosa" and when I took the test in 2018 (still 40 questions then), the best tool I used was the free app "Guida e Vai" The school mostly helped me with explaining questions I had about words that Google translate did not understand the differences. But I also suspect it helped to know them so that I was given a kinder judge on the driving part. It is not easy, in fact, be ready on the driving part for the instructor and the judge to start having conversations in Italian. I was confused wondering if I was doing something wrong or missing some instruction. After I passed, I realized that this was another test, to see if I could drive with distractions.
Mostly, I spent time telling my friend in Firenze (who gave me the bad advice about the International license out of ignorance) and any other stranieri that many people believed that living in the Renaissance City (or any place near good public transportation) avoided the need to drive. True. Great. The problem is when that resident wants to have a car to drive around Chianti, for example. Many do not know that you cannot apply for the International license and rent a car to do that. You are simply out of luck, unless you know someone willing to be your taxi. Penalties are serious. A reato.
Exactly. If you live in Firenze for example, and have had residency longer than a year, and don't have the Italian license, you can no longer rent a car and drive it in Italy. So if you have friends from back home come to visit, and you all want to go to Chianti for a day by rental car, you cannot be the driver.
I did learn recently that NY state passed a law allowing the commissioner of motor vehicles to make agreements for a license exchange with other countries, so if any of your reader hold NYS driver's licenses, please petition NY Commissioner of the DMV to make an agreement with Italy for a license exchange. In the meantime, I will continue to get around on my bici and by foot. You can email him here... executiveoffice@dmv.ny.gov. It is such a shame that people who have been driving for 40+ years have to go through this process. Italy would be smart to make the test available in English again or just charge a fee to licensed drivers who are willing to make the exchange.
I had known about the taxes in both countries but.. that chart of actual percentages by income level is quite informative. It is much more than I thought.
I totally understand you not knowing about the driving license thing... I have rarely encountered anyone who knows this ahead of time. Most don't realize until they've moved to Italy. And then they're often quite upset about it!
Thank you for this! Question - are you paying your taxes just to Italy or also some to the US? Or do you just have to file in the US while only paying Italy? Grazie.
Hi Kim,
All US citizens must file a tax return even if they don't live in the US. So, yes, I always file both countries. Italy and US have a treaty preventing double taxation but its benefits can be limited. You can read more about it here: https://www.cpasforexpats.com/post/us-italy-tax-treaty
I love how Taxes was number one. I guess because it's tax season?! I'm generally a pretty anxiety-free person but the Italian taxes, HOO BOY! For the first time in my life I hired an accountant and even then it was a nightmare to navigate. It's been 4 months of back and forth and they're still not filed. And let's see if the Agency actually agrees with the accountant, apparently they come back asking for more quite often.
Thank God I live in Milan and I can bike around instead of drive. It's surprising that the exam is so strict because nobody actually follows what they've studied as illustrated by their driving lol.
Yeah, the tax thing is a rompicoglioni 😟 My Commercialista told me a few years ago that I am owed a tax refund from 2021 of a few thousand euro. He's been telling me for a few years that I will get it "any day". HA! No sign of it so far.
I love the lack of anxiety over a pending tax refund! Very Italian of you haha, amazing
I will fall over in amazement if it ever shows up in my bank account!
Oooo wait it's early, I misread that as you owing them. No you'll never see that money haha
😤
Good tips! I wish more people would share a balanced view of life here as you do!
Thanks Lolly! Great to hear you appreciate the balance cuz some people give me stink eye for not being 100% gaga romantic! LOL 😂
Uffa - don’t listen to them!! 🙃
👍
You are so right about the need for the driver's license here. For one year almost, I drove illegally to my driving school (with their knowledge of the law and having a photo copy of my local ID, thus missing the opportunity to inform me that I was driving illegally before I started). After I discovered the law, I asked my instructors and they both said, "I know." um, thanks. One even said, "do not worry, police do not give fines to Americans." WT? But when I retorted, "ok, so if I am stopped, I should tell the officer that my driving instructor said that Americans are exempt from the laws in Italy?" um, no... he said, and I said, "please do not take risks on my life for me."
In any event, the driver's test has now become more difficult. It is no longer 40 questions, missing 4 max to pass. It is now 30 questions, missing 3 max to pass! There is a Facebook group to help people "Help! I need my Foglio Rosa" and when I took the test in 2018 (still 40 questions then), the best tool I used was the free app "Guida e Vai" The school mostly helped me with explaining questions I had about words that Google translate did not understand the differences. But I also suspect it helped to know them so that I was given a kinder judge on the driving part. It is not easy, in fact, be ready on the driving part for the instructor and the judge to start having conversations in Italian. I was confused wondering if I was doing something wrong or missing some instruction. After I passed, I realized that this was another test, to see if I could drive with distractions.
The tax chart was helpful and scary. Thank you.
Oh Kelly, I feel your pain with that story about not knowing you were driving illegally and your driving school dude not telling you, etc.
Kudos to you for tackling this and passing! BRAVA 👏
Yeah, the tax chart isn't the most enjoyable thing we've seen all day is it?
Mostly, I spent time telling my friend in Firenze (who gave me the bad advice about the International license out of ignorance) and any other stranieri that many people believed that living in the Renaissance City (or any place near good public transportation) avoided the need to drive. True. Great. The problem is when that resident wants to have a car to drive around Chianti, for example. Many do not know that you cannot apply for the International license and rent a car to do that. You are simply out of luck, unless you know someone willing to be your taxi. Penalties are serious. A reato.
Exactly. If you live in Firenze for example, and have had residency longer than a year, and don't have the Italian license, you can no longer rent a car and drive it in Italy. So if you have friends from back home come to visit, and you all want to go to Chianti for a day by rental car, you cannot be the driver.
I did learn recently that NY state passed a law allowing the commissioner of motor vehicles to make agreements for a license exchange with other countries, so if any of your reader hold NYS driver's licenses, please petition NY Commissioner of the DMV to make an agreement with Italy for a license exchange. In the meantime, I will continue to get around on my bici and by foot. You can email him here... executiveoffice@dmv.ny.gov. It is such a shame that people who have been driving for 40+ years have to go through this process. Italy would be smart to make the test available in English again or just charge a fee to licensed drivers who are willing to make the exchange.
What an interesting development that would be! The NY Commissioner might be a bit put off by the bureaucracy involved 😂
I had known about the taxes in both countries but.. that chart of actual percentages by income level is quite informative. It is much more than I thought.
Yeah, it's a lot. Universal health care and all that. 😉
Wow - I knew taxes would be complicated, but I had no idea about the driver's license. I think I would opt for somewhere I don't need a car. 😄
I totally understand you not knowing about the driving license thing... I have rarely encountered anyone who knows this ahead of time. Most don't realize until they've moved to Italy. And then they're often quite upset about it!
Michele, I forgot about the "infant" driver that you become after passing the exam. I have just added that part. LOL!
Ma dai!! :D
🤦♀️