The time is approaching to receive the State cashback refund, in which the beneficiaries of the Basic income (but not with the purchase card on which they receive the monthly recharge, as this is not enabled for cashback on the IO platform).
In detail, from July there will be the reimbursement of up to 150 euros for each member of the family unit, without limits as regards the single family. If there are three people in the household with three different cards enabled for cashback, then, you are entitled to three different refunds (as long as each has reached the required 50 transitions).
In this regard, those who are waiting for the reimbursement of the cashback are wondering if this will have repercussions on Citizenship Income. As is known, in fact, the amount of monthly support is calculated taking into account the income of the family unit.
Every income – except in some cases – must be declared and contributes to lower the amount of the Citizenship Income. Will this also be the case for the cashback refund? Let’s be clear.
State Cashback compatible with Citizenship Income (but not with the purchase card)
First of all it is good to clarify that who takes the Citizenship Income it can also join the state cashback initiative. There are, in fact, reasons for incompatibility between the two measures.
However, while at first it could be used also the purchase card of Poste Italiane, the one on which the beneficiaries receive the top-up every month, in order to participate in the cashback, today this is no longer the case. Going to the official website of the initiative, in fact, we read that the Postamat MasterCard Card (Citizenship Income Card) it cannot be used to pay on the IO app nor can it be activated for cashback.
Families, therefore, will have to use other cards if they want to participate in the cashback.
In fact, this is a novelty that greatly limits participation in the state cashback for those who take the Citizenship Income, considering that these – given the card withdrawal limit – mostly use this card for daily purchases.
State Cashback: the refund does not lower the Citizenship Income
For those who despite the above have still managed to reach the 50 transactions necessary to be entitled to the cashback refund it is good to clarify the possibility for this to weigh on the family income thus going to reduce the amount of the Citizenship Income.
Well, you can rest assured: the refund – up to a maximum of 150 euros per person – it will not go to lower the Citizenship Income. As stated in the 2021 Budget Law, article 1 paragraph 288, “the refunds attributed do not contribute to forming the income of the recipient for the entire amount paid in the tax period and are not subject to any tax levy.”
The reimbursement, therefore, does not generate income: it must not be declared, as it is not subject to taxation e it should not even be declared in the ISEE. It is also not necessary to communicate it for the purposes of Citizenship Income and this means that it will not even lower the amount.