How to get Tax Deduction - Amounts and% (Examples), Documents
What is a tax deduction and how to get it. Amounts,% and examples of calculating the tax deduction when buying an apartment, for children, for treatment, for a mortgage and not only.
Tax legislation provides each citizen of the Russian Federation with the return of personal income tax paid to the budget from his income. Tax deduction - compensation to a person from the state for the costs of treatment, education, purchase of housing, insurance, child support, investments.
In what cases and who has the right to take advantage of the deduction, how to draw up a declaration and receive compensation on a monthly basis, we will consider examples and provide available instructions.
What is tax deduction
According to the Tax Code of the Russian Federation, an individual is obliged to pay personal income tax from all incomes in the amount of 13% . Officially employed citizens receive a salary minus the tax, which was calculated and transferred to the budget by the company's accountant. Budget revenues are aimed at solving strategic tasks of the state, implementing social policy, paying benefits, maintaining the management apparatus.
A tax deduction is the amount of income from which no tax is paid or a refund of previously withheld tax, if there are expenses that are subject to compensation by law.
The tax deduction, in simple words, is the refund of the amount of tax from the salary that the accountant transferred to the budget for the year. Most often, information about tax is found in job advertisements when salary is indicated, for example, 50,000 before tax. This means that the employee will receive 44,247 rubles “on hand” or on the card.
The provision of deductions motivates citizens to want to work for hire and receive official "white" wages.
Deductions are classified into 6 types:
Losses from operations with securities.
For each type of deduction, a package of documents is provided, and the money will be returned subject to the conditions of the Tax Code of the Russian Federation.
Standard tax deductions (taxpayer and children)
Deduction from income for children and until a certain level of income is reached, is governed by Art. 218 of the Tax Code of the Russian Federation.
Standard tax deductions are provided:
Liquidators of the consequences of the explosion of a nuclear power plant ("Chernobyl victims");
Children with disabilities;
Parents and spouses of servicemen killed in the line of duty.
A complete list of categories is given in the code. If the taxpayer is entitled to several deductions, they are not summed up, but the maximum possible is provided.
The standard child tax deduction is always provided, regardless of whether the parent is eligible for other types of standard deductions.
Victims of the Chernobyl accident, liquidators of the consequences of nuclear tests, invalids of the Great Patriotic War and those injured while on duty today receive a deduction of 3,000 rubles. This means that this amount will be deducted from the tax base and an additional 390 rubles (3,000 x 13%) will not be transferred to the budget.
Persons holding state awards and the title of Hero of the SSR or the Russian Federation, combatants, children with disabilities from childhood, groups 1 or 2 receive a monthly deduction of 500 rubles, and savings - 65 rubles.
A deduction for minor children, as well as full-time students, cadets or residents, as well as disabled people - up to 24 years old, is provided to parents until the total income of each of them is 350,000 rubles. For example, with a salary of 35,000, it will take 10 months to reach a certain TC threshold. During this period, no tax will be calculated on the deducted amounts.
Deduction amounts :
The first and second child - 1,400, tax savings 195 rubles.
The third and subsequent ones - 3,000, the payer's benefit is 390 rubles.
The disabled person or is studying full-time, the adopted child - 12,000, the savings are 1,560 rubles.
Guardians and trustees receive a deduction of 6,000 rubles, which saves 780 rubles in case of non-payment of tax.
The sole parent or caregiver receives a double deduction. When registering a marriage, the tax deduction is reduced.
In addition, any parent can receive a double tax deduction for children if the other parent waives this right.
Consider an example of calculating savings if you are eligible for a standard deduction.
There is 1 child in the Ivanov family. The salary of each of the spouses is 45,000 rubles. The amount of personal income tax transferred to the budget from one salary on a monthly basis is 5,850 rubles.
The income of each spouse, by summing up payments from the beginning of the year, will amount to 350,000 rubles in August. The right to a standard spouse deduction will save: (1,400 x 2) x 7 = 19,600 x 13% = 2,548 rubles.
Social deduction for all transfers by an individual to charitable purposes during the year is compensated if the transfers were made to non-profit organizations.
The amount of the tax deduction must not exceed 25% of the total amount of income received in 12 months.
Enumerations can be directed :
Non-profit organizations working in the field of education, culture, sports, health care, social support of citizens, protection of animals and nature.
The deduction procedure is regulated by Art. 219 NK FR.
A deduction will not be granted if :
The transfer was made not to the organization specified in the Tax Code, but to the foundation established by it;
The expenses assumed a selfish purpose (advertising, “buy-out” of property, provision of non-core services);
Assistance was provided to an individual - an employee or founder of a charitable organization.
Expenses must meet the criteria specified in Federal Law No. 135-FZ "On Charitable Activities and Charitable Organizations", the Constitution of the Russian Federation (Article 39), and the Civil Code (Article 582).
An example of calculating the amount of compensation for charity .
For example, AV Vasilkov received an income of 450,000 rubles per year. The amount of personal income tax transferred by the employer is 58,500 rubles.
Transferred to a religious organization - 150,000 rubles.
The maximum possible deduction of 25% of income: 450,000 x 25% = 112,500 rubles.
Expenses exceeded the limit by 150,000 - 112,500 = 37,500
Personal income tax deducted will be calculated: 450,000 - 112,500 = 337,500 x 13% = 43,875
58,500 - 43,875 = 14,625 rubles. will return Vasilkov A.V.
Deduction for treatment
Social tax deduction includes reimbursement of part of the cost of treatment or consultations of specialized specialists. 120,000 rubles are not taxed annually, which are allowed to be spent on treatment, if personal income tax has already been transferred, a declaration is submitted and the money is returned.
The health care deduction can be used to offset the costs of your own wellness activities, your children, and your parents.
It is allowed to receive a tax deduction for treatment if the money is directed to :
Treatment in private medical institutions;
Stay in a private and public hospital;
Paid services in municipal clinics and emergency hospitals;
Dental services, including dental prosthetics, except for cosmetic procedures;
Sanatorium treatment, paid for with own funds;
Purchase of medicines prescribed by a doctor (it is necessary to have a prescription issued on form No. 107 / y);
Buying a voluntary health insurance policy.
The full list of services subject to compensation is presented in the Government Decision No. 201 of 19.03.2001.
The requirement of the Federal Tax Service Inspectorate - the organization must have a license and registration on the territory of our country.
A contract must be concluded for each service, and payment for services must be confirmed by receipts.
The cost of expensive drugs is compensated in full, which distinguishes the social deduction from others, where a limit is set on the refund of only part of the taxpayer's costs.
Deduction for tuition
standard tax deductions
The cost of education rises annually.
As of 2020/2021, the minimum cost of the service
1 month in a private school - 25,000 rubles;
1 semester in college 26,000 rubles;
1 semester at the university 70,000 - full-time education, 50,000 - part-time.
Prices are approximate and their range by region is quite large. Reimbursement of part of the costs will allow the parents or relatives of the student or student to raise money to pay for subsequent years of study.
The deduction is provided only for services provided by organizations licensed for educational activities, including those located abroad.
The tuition deduction is provided in the following cases:
Own training . Any form of study - secondary, additional, evening, correspondence, distance learning, refresher or retraining courses, etc.
Teaching a child or guardian under the age of 24 . Restriction on the form of education - only full-time education at a university or secondary school, private school, preparatory courses, additional education. In the declaration, when paying for tuition by the guardian, after the child reaches 18 years of age, indicate the "former guardian".
Education of full or incomplete brothers and sisters, until they reach 24 years of age . Legal requirements - full-time education only.
A deduction of no more than 120,000 rubles for one's own education or payment for services for a brother / sister. The education of own and adopted children is compensated from a deduction of 50,000.
For example, the Petrovs' child entered the university. The cost of training is 100,000, with a one-time payment for 4.5 years - 400,000 rubles. (50,000 discount).
Officially, a mother works in the family, the salary is 50,000, personal income tax per year is 78,000.
If you pay every year, compensation for expenses: 100,000 x 13% = 13,000 x 4.5 = 58,500
With a one-time payment of 400,000, the refund amount will be calculated from the limit of 120,000 x 13% = 15,600. Taking into account the discount, savings are 50,000 + 15,600 = 65,600 .
The difference is small, so if you have your own funds, you can choose any method of payment, if you pay from borrowed sources, the benefit from paying the entire cost of training will be canceled by the interest charged. In this case, it is better to pay annually without attracting credit resources.
This deduction was introduced on January 1, 2015 and allows you to receive a benefit in the payment of personal income tax (Article 219 of the Tax Code of the Russian Federation).
Voluntary insurance costs are reimbursed if the insurance object is approved by law.
A taxpayer can be insured to reimburse personal income tax:
Your own life;
The life of parents (including adoptive ones);
Children (relatives, adopted children, fosterlings).
You can conclude an agreement in any company whose activities are regulated by Federal Law No. 4015-1 "On the organization of insurance business in the Russian Federation"
The contract must state :
Information about the insured;
The subject of the contract and the risks at which the payment occurs;
An important condition is that the term of the policy must be at least 5 years.
The deduction can be obtained under contracts concluded before 2015, but only in the amount of taxes transferred or paid from the moment this deduction was introduced.
For example, the contract was concluded in 2013. The expiration date is 2018. The declaration can be submitted for a tax refund listed from 01.01.2015. The maximum amount of the deduction is 120,000 rubles. in year.
Deduction for the funded part of the pension
To maintain the welfare of pensioners and increase the amount of pension payments, Article 214 of the Tax Code provides for a deduction for citizens who form payments to non-state pension funds and draw up voluntary pension and life insurance policies for more than 5 years.
The deduction limit is 120,000 rubles.
Please note that 120,000 is the limit on social benefits, which also includes reimbursement of expenses for training and treatment.
The maximum amount that the IFTS will return is 120,000 x 13% = 15,600 rubles.
You can draw up agreements for financing a pension in your own name, spouse, parents, disabled children.
For example, there is a deduction of 50,000 for the treatment of a child, which means that the deduction for the formation of the funded part of the pension will be 120,000. If there are medical expenses and expensive medications with the deduction of 120,000, you cannot get a benefit for voluntary life insurance.
Deductions on securities
how to get tax deduction
Since 2017, it provides the right to receive compensation for personal income tax when selling securities, if the investor fulfills the conditions:
The securities were traded on an organized market and were held for at least 3 years.
The maximum amount for calculating the deduction is equal to the product - the number of years of ownership of the paper and the amount of 3,000,000 rubles.
The holding period is determined using the FIFO sales method - redemption of the security purchased first.
There will be no compensation for sold securities, which were recorded on an individual investment account.
When buying securities, it is impossible to reliably predict their yield; when carrying forward losses, you can get a deduction.
Based on the results of the financial year, if the amount of expenses is greater than income. The amount of the difference received can be saved on the payment of personal income tax. If the loss is large and tax cannot be calculated, then the deduction can be used in another period.
Limitations in determining the amount of deduction:
Transactions that are not related to the circulation of securities or financial instruments of futures transactions in the organized market cannot be attributed to deferred losses
A loss can only be attributed to the type of activity from which it was received, a decrease in the tax base not related to the organized securities market is prohibited
The negative difference in transactions with financial instruments reduces the tax base formed only for profitable futures transactions carried out in the organized market.
For example, N.I. Tsvetkov at the end of 2018 received a loss of 50,000 on transactions in the organized market and 10,000, in securities, outside the market. In 2019, I earned 70,000 from transactions in the organized market.
The amount of tax at the end of 2019 (70,000 - 50,000) x 13% = 2,600 rubles.
The loss can be taken into account . When determining the taxable base 10 years from the date of its receipt. If several periods were with "negative" financial results - they are deducted in chronological order.
Documents confirming the right to deduction must be kept for several years until the loss is compensated.
When conducting investment activities through an individual account, a deduction is applied in the amount of its replenishment, but not more than 400,000 per year. The right to compensation has been realized since 2015.
The deduction will be granted if the taxpayer had only one investment account during the tax period. A new account can be opened only upon termination of the previous agreement and transfer of all assets.
If the term of account management is less than 3 years from the date of opening, the compensation which the payer received for the periods preceding the termination of the contract, is subject to return to the budget.
The investor receives tax relief on income from operations on an investment account. The right to compensation can be exercised if no more than 3 years have passed since the date of the IIS opening.
Deductions for income and the amount deposited on the IIS are not cumulative and are provided only once. If the investor has received compensation for the replenishment of the account, there will be no income benefit.
Investors receive a deduction for income on an individual account from 2018.
Deduction on the sale of property
tax deduction application
When selling a dwelling or its share, as well as the land plot located under it, the deduction is calculated from the limit of 1,000,000, which will be deducted from the sale price, and personal income tax must be paid from the difference.
For example, they sold an apartment for 3,000,000 rubles. The amount of tax without property deduction is 3,000,000 x 13% = 390,000, and after applying the deduction (3,000,000 - 1,000,000) x 13% = 260,000.
Often sellers are asked to indicate in the contract the "nominal" value of the apartment 1,000,000 - 1,200,000, but such transactions are carefully checked by the Federal Tax Service Inspectorate.
A deduction of 250,000 rubles is established for non-residential premises and vehicles, which applies to transactions carried out during the year.
Sold 1 car for 500,000, pay 32,500, and if 3 cars for 800,000 per year, then personal income tax 71,500 = (800,000 - 250,000) x 13%.
If the property is owned for more than 3 years, you do not need to pay personal income tax. Residential real estate can be sold tax-free after 5 years, except for donation, dependents and privatization agreements, they are subject to a 3-year moratorium.
Home purchase deduction
Property tax deduction is provided for items of expenditure:
Purchase or construction of housing (shares in it), a land plot under a private house.
Interest compensation on targeted loans is a tax deduction for a mortgage, building loan, or home improvement.
Repayment of interest on loans. Drawn up to refinance current targeted loans issued for the construction or purchase of housing.
Expenses for completion and finishing, if there is information in the sales contract that construction is not completed or that pre-finishing has been completed.
The maximum amount of expenses for the calculation is 2,000,000 rubles.
The requirement for a property is to be located on the territory of the Russian Federation.
When buying a home before January 1, 2014, it was possible to get a deduction only for a single object, after that, you can use a deduction for several objects if their value is less than 2,000,000.
Limiting the cost of building or buying a home when paying off interest on a mortgage - 3,000,000.
Until January 1, 2014, no restrictions were established and the deduction was calculated from the amount of interest actually paid to the bank.
There is no time limit for the refund of the tax deduction for the apartment. If the entire amount of the deduction was not received in the reporting period, the owner can file a declaration in the next, and so on until the full reimbursement.
The tax deduction for the purchase of an apartment will not be taken into account if:
Payment for the construction or purchase of housing came from the employer, the municipal or federal budget;
The sale and purchase agreement is concluded with a person who is in kinship with the taxpayer (Article 105 of the Tax Code of the Russian Federation).
The cost of real estate for calculating the deduction will be reduced by the amount of maternity capital if it was transferred to pay the seller or repayment of the debt to the bank.
Who is eligible for the deduction
Citizens who are officially employed, from whose income the deductions to the budget were made, can receive a deduction.
The Tax Code states that the following are entitled to compensation:
Tax residents who are in the country for at least 183 calendar days within 12 months and who work under an employment contract or GPC
Foreign citizens who receive income on the territory of the Russian Federation and pay it to the budget, with a stay of 180 days per year
Persons who have sold movable and immovable property that has been in ownership for less than 3 or 5 years, depending on the method of its acquisition.
What documents are needed to receive a tax deduction
The taxpayer must prepare
A copy of your passport;
Certificates of income from the main job and part-time;
Application for a refund, indicating the details.
To receive a tax deduction for education, they provide:
Agreement with annexes and additional agreements, if any
A copy of the license, if the agreement does not contain information with the number and date of its issue
A receipt with a cash register check or a payment order, when paying by bank transfer, a receipt for payment with a bank mark.
When paying for education for a child, brother or sister, you will additionally need:
Certificate from the educational institution about the form of study (if the information is not specified in the contract);
Guardianship or guardianship agreement, foster family agreement;
Documents confirming relationship with a brother or sister.
To receive compensation from the sale of securities - Broker's report, which will confirm the correctness of the amount indicated in 3-NDFL and the period of holding the securities.
To confirm the data in 3-NDFL for replenishment of the IIA:
Documents confirming the right to return personal income tax (account management agreement / brokerage service or trust management / application for joining the brokerage service or trust agreement);
Money transfer documents (payment order or cash receipt order)
When making a deduction from income on IIS - broker's report.
How to get a tax deduction (two instructions: through the tax office and through the employer)
Submission of a tax return is available at any time during the year.
Tax deduction can be obtained in 2 ways:
Once a year through the IFTS;
Once a year or monthly with the employer.
Let's consider step by step how to get a deduction in each case, so that everyone can determine the option that suits them.
The most common way to obtain an annual deduction from the Federal Tax Service includes the following steps:
Collecting documents to confirm the amount of the deduction - receiving from the employer 2-NDFL, a certificate from the bank about the interest paid (if the deduction is submitted for their return), preparation of documents justifying expenses (checks, receipts, contracts, receipts, etc.).
Registration on the website of the IFTS.
Online filling out the declaration and attaching photos or screen images of documents confirming the amount of the deduction.
Filling out an application with details for transferring money, with a positive decision of the tax authority, immediately after sending the declaration.
Waiting for the results of a desk audit.
Crediting money, after confirming the right to deduction.
The submission of the declaration is remotely available only for citizens who have a confirmed record on the State Service portal!
If you want to receive a deduction at the place of work, you must:
Write an application for a tax deduction to the Federal Tax Service Inspectorate in order to confirm the amount to be refunded at the end of the current year.
Get a decision on the application.
With a positive decision, provide a notification to the IFTS to the accounting department of the enterprise and write a statement.
Starting next month, after the submission of documents, personal income tax of 13% will not be withheld from the salary, the taxpayer will receive a full salary with tax.
For example, the salary is 47,000 rubles, net of tax, 41,593 rubles. "On hand". If there is a certificate, the salary will be paid in full.
Duration of the deduction
The refund of the deduction through the employer is made on the next date of payment of wages - the withholding of personal income tax is terminated until the entire amount specified in the notification of the tax authority is paid.
In the accounting department of the enterprise, the deduction will be applied from the moment of receipt of the application and notification, the recalculation will be made from the beginning of the year.
To receive money through the Federal Tax Service Inspectorate, you need to take into account that the maximum period of a desk audit is 90 calendar days. The decision can be made earlier, but not a day later. If there is a tax debt, part of the deduction will be sent to pay it off.
The term for transferring money upon application from the date of receipt of the decision is 30 calendar days.
It is fashionable to find out the decision based on the results of the check in your personal account on the inspection website or a notification by mail.
If it is necessary to make a correction, the declaration will be sent for revision, after which the verification period will begin to be calculated anew.
Submit your 3-NDFL tax return at the beginning of the year. Sometimes the decision comes in 14 days less.
To speed up the deadlines for obtaining a deduction, write in September an application for a certificate of the amount of the deduction, for a return through the employer. A response will be received within 30 days. In November, it will not wake up personal income tax from wages and will additionally return the tax that was transferred to the budget from January to October.
Keep your income statements and tax returns for previous periods. The data in the declaration is indicated cumulatively, so it is important to know what was filled in earlier in order for the data to match. For example, a share in an apartment, the value of interest received and deduction for previous periods, etc.
Carefully fill in the fields and tabs in the declaration, attach supporting documents. Please note that after filling out the declaration, you need to look at the version generated by the program, make sure that the amount to be returned is indicated correctly, since if there is at least one error, it will be equal to 0 (zero).
If after 4 months (120 days) the money has not been credited to the account, and the declaration has passed the verification, call the number of the free "hot" line of the INFS and leave a complaint. From the author's personal experience - an effective way, the problem is solved within 1-2 days.
Do not contact the "contractors" at the INFS or consultants, because filling out the declaration is quite simple. You will save from 1,500 to 5,000, because many set the tariff as a percentage of the deduction amount. Promises to get money faster will remain words, there is no way to get a tax deduction faster than the deadlines provided for by law. The minimum period is 30 days if the declaration is checked within 10 days and bank transfer is 10 days, but this is an exception that occurs 1 time per 1,000 requests, since the automatic routing of documents and time control will not allow specialists to selectively check declarations.
The IFTS employs competent employees, professionals who are ready to help. When reviewing documents, having discovered an error, the applicant will be contacted, explaining how to make corrections correctly and reviewing the corrected document as soon as possible.
A tax deduction is a significant financial aid in solving current household or housing problems. Choosing a convenient way for yourself, remember that the amount of the state "bonus" depends on the size of the official salary.
Do not forget to receive personal income tax annually when planning the costs of treatment, education or purchase of housing and always keep documents confirming payment for goods or services until the money is credited to the bank account.
Enjoy your shopping and compensation!