If a pensioner continues to work: pros and cons, benefits and indexation

Grounds for providing tax benefits

The following categories of taxpayers are entitled to tax benefits:

• Heroes of the Soviet Union and Heroes of the Russian Federation, as well as persons awarded the Order of Glory of three degrees;
• disabled people of disability groups I and II;
• disabled since childhood, disabled children;
• participants in the Civil War and the Great Patriotic War, other military operations to defend the USSR from among military personnel who served in military units, headquarters and institutions that were part of the active army, and former partisans, as well as combat veterans;
• civilian personnel of the Soviet Army, Navy, internal affairs and state security bodies who held regular positions in military units, headquarters and institutions that were part of the active army during the Great Patriotic War, or persons who were in cities during this period, participation in the defense of which these persons are counted towards their length of service for the purpose of granting a pension on preferential terms established for military personnel of active army units;
• persons entitled to receive social support in accordance with the Law of the Russian Federation of May 15, 1991 N 1244-1 “On the social protection of citizens exposed to radiation as a result of the disaster at the Chernobyl nuclear power plant”, in accordance with the Federal Law of November 26, 1998 N 175-FZ “On the social protection of citizens of the Russian Federation exposed to radiation as a result of the accident in 1957 at the Mayak production association and the discharge of radioactive waste into the Techa River” and Federal Law of January 10, 2002 N 2-FZ “On social guarantees to citizens , exposed to radiation as a result of nuclear tests at the Semipalatinsk test site”;
• military personnel, as well as citizens discharged from military service upon reaching the age limit for military service, health conditions or in connection with organizational and staffing events, having a total duration of military service of 20 years or more;
• persons who were directly involved as part of special risk units in testing nuclear and thermonuclear weapons, eliminating accidents of nuclear installations at weapons and military facilities;
• family members of military personnel who have lost their breadwinner, recognized as such in accordance with Federal Law No. 76-FZ of May 27, 1998 “On the status of military personnel”;
• pensioners receiving pensions assigned in the manner established by pension legislation, as well as persons who have reached the ages of 60 and 55 years (men and women, respectively), who, in accordance with the legislation of the Russian Federation, are paid a monthly lifelong allowance;
• individuals who meet the conditions necessary for granting a pension in accordance with the legislation of the Russian Federation in force on December 31, 2020 (from January 1, 2019);
• citizens discharged from military service or called up for military training who performed international duty in Afghanistan and other countries in which hostilities took place;
• individuals who received or suffered radiation sickness or became disabled as a result of tests, exercises and other work related to any types of nuclear installations, including nuclear weapons and space technology;
• parents and spouses of military personnel and government employees killed in the line of duty;
• individuals carrying out professional creative activities - in relation to specially equipped premises, structures used by them exclusively as creative workshops, ateliers, studios, as well as residential premises used to organize non-state museums, galleries, libraries open to the public - for the period such use;
• individuals - in relation to economic buildings or structures, the area of ​​each of which does not exceed 50 square meters and which are located on land plots provided for personal subsidiary farming, dacha farming, vegetable gardening, horticulture or individual housing construction.

A tax deduction is also provided for individuals with three or more minor children.

A tax benefit is provided in the amount of the amount of tax payable by the taxpayer in relation to an object of taxation that is owned by the taxpayer and is not used by the taxpayer in business activities.

When determining the amount of tax payable by a taxpayer, a tax benefit is provided in respect of one taxable item of each type at the taxpayer's choice, regardless of the number of grounds for applying tax benefits.

Tax benefits are provided for the following types of taxable items:

1. apartment, part of an apartment or room;
2. residential building or part of a residential building;
3. premises or structures specified in subparagraph 14 of paragraph 1 of Article 407 of the Tax Code of the Russian Federation;
4. economic building or structure specified in subparagraph 15 of paragraph 1 of Article 407 of the Tax Code of the Russian Federation;
5. garage or parking space.

Tax benefits are not provided in respect of taxable objects specified in subparagraph 2 of paragraph 2 of Article 406 of the Tax Code of the Russian Federation, with the exception of garages and parking spaces located in such taxable objects.

In addition, in accordance with paragraph 3 of Article 346.1, paragraph 3 of Article 346.11, paragraph 4 of Article 346.26 and paragraph 10 of Article 346.23 of the Tax Code of the Russian Federation, the use by individual entrepreneurs of a taxation system for agricultural producers, a simplified taxation system, a taxation system in the form of a single tax on imputed income for certain types of activities, the patent taxation system provides for their exemption from payment of property tax for individuals in relation to property used in business activities, with the exception of objects of taxation with property tax for individuals included in the list of administrative, business and shopping centers determined in in accordance with Article 378.2 of the Tax Code.

Individuals entitled to tax benefits established by the legislation on taxes and fees submit an application for a tax benefit to the tax authority of their choice, and also have the right to submit documents confirming the taxpayer’s right to a tax benefit.

If a taxpayer belonging to one of the categories of persons specified in subparagraphs 2, 3, 10, 101, 12, 15 of paragraph 1 of Article 407 of the Tax Code of the Russian Federation, and entitled to a tax benefit, has not submitted to the tax authority an application for provision of a tax benefit or did not inform about the refusal to apply a tax benefit, the tax benefit is provided on the basis of information received by the tax authority in accordance with the Tax Code of the Russian Federation and other federal laws.

Local governments and the relevant authorities of the federal cities of Moscow, St. Petersburg and Sevastopol have the right to establish additional tax benefits for personal property tax not provided for by federal legislation.

Information on tax benefits (for all types of property taxes in all municipalities) can be found in the section “Reference information on rates and benefits for property taxes”, or by contacting the tax inspectorates or the contact center of the Federal Tax Service of Russia (tel. 8 800 – 222-22-22).

A notification about selected taxable items in respect of which a tax benefit is granted is submitted by the taxpayer to the tax authority of his choice before December 31 of the year, which is the tax period from which the tax benefit is applied to these items.

Notification of selected tax objects can be submitted through the MFC, with which the tax authority has entered into an agreement on the possibility of providing the corresponding service.

Why do pensioners need tax breaks?

Social guarantees are a privilege that the state provides to socially vulnerable sections of society. This also includes pensioners. In 2020, a new round of pension reform took place, according to which women aged 56.5 years and men aged 61.5 years became pensioners.

To take advantage of the benefits, you need to know about this right and declare it. Some tax discounts are recorded automatically, for others you need to write an application to the Federal Tax Service once, and others need to be confirmed annually. Therefore, pensioners should know what they can count on in 2020 and regularly take an interest in updates in legislation.

Before you retire, check out Comedy Club

The main advice: in order to complete everything successfully and on time, but at the same time literally live until your long-awaited retirement, watch the sketch from the Comedy Club about the passport office. My husband and I had a lot of fun when we saw it on TV, assuming that it was grotesque after all. Well, here we are: we were wrong. This is reality.

It seems that people working in pension departments have the task of doing everything possible so that a person gives up, without submitting a certificate for a certificate of reference, without making a million requests to the archives, without explaining “Why is it, in fact, that your seal is hard to see here?” ?. (And the fact that she was put into labor 30 years ago is nothing? During this time, having been touched by the hands of all your many predecessors in various government bodies, she should have already annihilated.)

Yes, special school number 17 no longer exists. Have you heard anything about the reorganization of schools? Okay, I won’t explain to you when and why. Yes, I would like you to scan (or at least manually copy) what I did before 2001, because simple arithmetic tells me that I started working when I was 17 years old, and I work all the time without a break, and yes, I 55 years. How did you find out in your computer that I have 17.5 years of experience?

Yes, I want to write an application and receive my money from the funded part of the pension right now. Why? Why does everyone receive their first pension payment in six months, but I now? But because: a) I want it that way and b) that’s what’s written in the law and commented on on your website.

At this dramatic moment of intense passion, a loud cry was heard from the next office of a desperate woman: “Who are you that I should tell you these details of my life? Am I going to confession with a priest or with an inspector of the pension department?

But I was lucky, no one tried to drag the intimate issues of my long professional life out of me, but they also didn’t want to part with my money easily and quickly.

Do you have any help? Eat! What about the birth certificate? What about marriage? Here we go. What about the current account? But I printed it today through Sberbank Online! Everything is 100% exactly as it was shown by Demis Karibidis and Andrey Skorokhod. I laughed all the way home. The last phrase that the nice young lady threw after me when she finally accepted the application for payment of the insurance portion seemed especially funny: “And don’t expect that you will get your 60 thousand quickly. Only in three months. Don’t wait any earlier!” Yeah, let’s multiply a million pre-retirement people by 60 thousand, and by three months. Quite a “good guy” like that. You can do a lot with them in three months. Well done, Pension Fund! Penny by penny...

Tax benefits for pensioners

Tax benefits for pensioners look very attractive.

Personal income tax

• Exemption from taxation (13%) of certain income - pensions and social supplements to it, as well as other income up to 4,000 rubles. for the year for each reason: gifts, financial assistance from employers;
• payment (compensation) by employers for the cost of medicines to citizens receiving an old-age pension;
• payment by organizations for sanatorium vouchers, treatment for persons receiving an old-age or disability pension.
• Transferring property deductions to previous tax periods when purchasing an apartment, a plot of land for individual residential development, or purchasing/constructing a house (relevant for working pensioners or those who have recently retired).

Property tax

Exemption of all pensioners, non-working and continuing to work, from property tax on one piece of real estate (house, apartment, dacha, outbuilding of a personal subsidiary plot with an area of ​​up to 50 m², garage).

Land tax

It is a regional benefit, so the size of the benefit is determined by local regulations. The state has taken care to ease the burden of this fee for some pensioners. According to the Tax Code, citizens on the list of federal beneficiaries are completely exempt from land taxes. Ordinary pensioners, regardless of their region of residence, do not pay tax on a land plot whose area does not exceed 6 acres. For example, a citizen owns a plot of 8 acres. You only need to pay the treasury for 2 acres. In essence, this is the right to receive a deduction of 10,000 rubles. The amount of mandatory payment for a plot depends on the region.

Exemption from payment of state duty

Pensioners of the Russian Federation may not pay a fee if they go to court on claims related to the assignment and receipt of a pension. An important condition is that the amount of claims should not exceed 1 million rubles. In all other cases, the state duty is paid on a general basis.

Transport

The transport tax benefit for pensioners is also calculated at the regional level, since the tax applies to local ones. For example, in Moscow, veterans, Chernobyl victims, Heroes of the Russian Federation and the USSR have a preference for one car. Federal beneficiaries are completely exempt from paying funds to the treasury for a vehicle. At the state level, the right of a pensioner is prescribed not to pay tax for one vehicle up to 100 liters. With. The total payment amount depends on the type of transport and engine power. Federal law establishes a certain base, but regional authorities have the right to increase the rate.

The following vehicles are subject to transport tax:

• cars;
• motorcycle transport;
• scooters and more.

Exceptions include:

• specially equipped vehicles for disabled people;
• rowing or motor boats up to 5 liters. With.;
• vehicles with power up to 100 hp. pp. received under the social protection program.

How to take advantage of the transport benefit for pensioners?

To receive preferences you must complete the following steps:

1. Collect your pension certificate, Russian passport and documents for the car (PTS and STS).
2. Call the nearest tax office and find out what documents are needed to apply for a transport benefit (each region has its own requirements).
3. Download and print the form for applying for a transport benefit.

In the finished form, you need to put a mark in the third column (“transport tax”), indicate the Federal Tax Service at your place of residence, information from the pension certificate, and car details. You will also have to enter your TIN and full name so that each character is in a separate cell. Finally, you need to specify the telephone number, email address (if any), month and year of expected receipt of the benefit, and then underline the inscription “for an indefinite period.”

Do pensioners pay property taxes?

Russian pensioners may not pay taxes for one of the following objects:

1. House.
2. Garage or parking space.
3. A room or building for professional creative activities.
4. Apartment or room.
5. A utility building on a garden plot of up to 50 square meters.

Important: this benefit only applies to one property. If there are several houses, a pensioner can “exempt from taxes” only one of them.

Tax-free income

Payments received upon assignment of a pension (pension benefit, fixed portion, funded pension) are not subject to taxes. Pensioners do not pay income tax for the cost of vouchers to health resorts located in the country.

Unpaid taxes include medical services provided to working retirees. This is due to the fact that medical care is paid for by the employer. The benefit is provided not only to working pensioners, but also to their immediate relatives.

Also, payment for treatment of former employees who quit due to reaching retirement age or acquiring the status of “disabled” is not taxed.

What happens to my pension after dismissal?

After the dismissal of a pensioner, the Pension Fund must recalculate his pension benefits, taking into account indexation. Payment of pensions, taking into account indexation, will not begin immediately, but three months after dismissal. However, the amount that the pensioner does not receive in these three months will be paid in addition.

REFERENCE : This additional payment did not arise immediately. Until 2017, namely the adoption of Law No. 134-FZ on amendments to Art. 26.1 of the Federal Law “On Insurance Pensions”, retired pensioners did not have the right to receive additional payment for the period during which they were considered unemployed, but their pensions were not indexed.

Why does indexation begin only after three months? The decision to pay the indexed security is made by the Pension Fund the following month after receiving information about the termination of the employment relationship. For example, if a citizen quits his job in August, he will begin to be considered unemployed only in September (this is the first month after termination of employment). In September, the Pension Fund will not receive information about work for September (information is submitted only for working pensioners), so only in October (the third month) will the Pension Fund decide that from November the pensioner will receive a full pension. The pensioner will receive additional payment from September - the month from which he is considered unemployed.

Procedure for granting tax benefits

Having made sure that the taxpayer belongs to the categories of individuals entitled to a tax benefit, but the benefit was not taken into account in the received tax notice or arose for the first time, it is advisable to submit an application to any tax authority for a benefit on transport tax, land tax, and personal property tax. in the prescribed form (letter of the Federal Tax Service of Russia dated May 13, 2020 No. BS-4-21/ [email protected] ).

If an application for a tax benefit was sent to the tax authority and it did not indicate that the benefit would be used for a limited period, there is no need to resubmit the application.

You can submit an application for a tax benefit to the tax authority in any convenient way:

• through the “Taxpayer’s Personal Account” (for users of the Taxpayer’s Personal Account);
• by mail to the tax office;
• by personally contacting any tax office;
• through an authorized MFC, with which the tax authority has entered into an agreement on the possibility of providing the relevant service.

An application for a tax benefit is considered by the tax authority within 30 days from the date of its receipt.

If the tax authority requests information confirming the taxpayer’s right to a tax benefit from authorities and other persons who have this information, then the period for consideration of the application may be extended, but not more than 30 days. In this case, the taxpayer is notified of the extension of the period for consideration of the application.

Based on the results of consideration of the application, the tax authority sends to the taxpayer, in the manner specified in the application, a notice of the provision of a tax benefit or a message of refusal to provide a tax benefit, indicating the grounds for the refusal.

If a taxpayer, an individual entitled to a tax benefit, has not submitted an application for a tax benefit to the tax authority or has not reported a refusal to apply a tax benefit, the tax benefit is provided on the basis of information received by the tax authority in accordance with the Tax Code Russian Federation and other federal laws.

Regional benefits

In the constituent entities of the Russian Federation, there are the following rarely mentioned privileges for citizens of advanced age:

• in Novosibirsk - targeted assistance in the form of providing things and providing the services of a social worker;
• in Nizhny Novgorod - if there are medical indications - a trip to a sanatorium;
• in Krasnodar, significant benefits are provided upon reaching the age of 80 years. This includes free travel, a 50% discount on major repairs, and reimbursement for utilities. Not only age matters, but also family composition. Citizens over 80 years of age are provided with separate benefits at the federal level. For example, doubling the fixed payment as part of the pension under Federal Law-173 dated December 17, 2001;
• in Yekaterinburg there are benefits for transport and land taxes;
• in Irkutsk, surcharges have been indexed since 2020, and the right to free travel on electric trains has been granted since 2020.

Since 2020, Russia has been operating a unified information system called Unified State Information System, where you can find out the latest news about social support measures.

How to take advantage of benefits: where and when to submit applications

Once a man turns 60 and a woman 55, they can apply for a tax rate review. Since they have not yet become pensioners, not a single benefit will be accrued automatically.

An application to the Federal Tax Service can be sent to:

1. Personally;
2. By registered mail;
3. Through MFC;
4. Through the taxpayer's personal account.

The application indicates the circumstances (the occurrence of the appropriate age or other conditions, if such are necessary to receive benefits), as well as the personal data of the applicant. You need to attach documents: passport, documents for property or land, as well as other papers, if any (pension certificate, certificate of disability, certificate of assignment of the status of Chernobyl survivor or hero of the Russian Federation, etc.).

It is better to submit to the Federal Tax Service of the region where the applicant is registered, since most benefits are supported at the regional level. There is only one exclusively federal benefit - for land allotment. In addition, the tax authority in your region can obtain comprehensive information about the rules for providing tax benefits in a specific entity or for you personally.

Supplement to pension

The regional social supplement to the pension is set to the city social standard (from September 1, 2020 in Moscow it is 19,500 rubles per month), if the non-working pensioner has been registered at his place of residence in Moscow for a total of at least 10 years.

In the regions, it is necessary to clarify the city social standard at the place of residence.

If a pensioner has been registered at his place of residence in the capital for less than 10 years or is registered at his place of stay, the regional social supplement to the pension is set to the pensioner’s subsistence level in Moscow (in 2020 it is 12,115 rubles per month).

Any Moscow non-working pensioner receiving a pension or lifelong allowance in the city of Moscow (regardless of the type of pension received and the body to which it is paid) can receive a regional social supplement to their pension.

Pensioners living in Moscow at their place of residence or stay may qualify for one of two main pension supplements:

• non-working pensioners can apply for a regional social supplement to their pension ;
• working pensioners who have lived in Moscow at their place of residence for 10 years or more receive a monthly compensation payment towards their pension .

In addition, some categories of citizens are provided with additional monthly payments towards their pension . Such payments are provided for:

• heroes of the USSR and Russia, full holders of the Order of Glory;
• heroes of Socialist Labor and Labor of Russia, full holders of the Order of Labor Glory;
• disabled people and participants of the Great Patriotic War;
• participants in the defense of Moscow;
• patients with pituitary dwarfism (Lilliputians) and disproportionate dwarfs;
• children whose parents died as a result of terrorist attacks, man-made and other disasters;
• veterans from among the flight test personnel;
• citizens who have merit in the field of physical education and sports;
• citizens who have merits in the field of culture.

Documents can be prepared and submitted to the MFC or on the website mos.ru

Tax refund when buying an apartment

When selling apartments and other residential property, pensioners pay a 13% tax. But they are given a tax deduction. Previously, its size was 1 million rubles. This benefit was provided according to the following principle:

• a pensioner sells an apartment for 2.5 million rubles;
• A tax deduction (1 million rubles) is subtracted from this amount. As a result, 1.5 million rubles remain;
• 13% is calculated from the total amount (in this case, it turns out to be 195 thousand rubles).

As a result, the pensioner saved 40% of the tax amount, paying 195 thousand rubles instead of 325 thousand. Since 2020, the Government has improved the conditions for tax deductions. Instead of a fixed amount (1 million rubles), it returned 30% of the tax amount to citizens. As a result, when selling expensive apartments, citizens of the Russian Federation receive a larger deduction. In some regions of the Russian Federation, there are additional tax refund programs when purchasing an apartment.

Important: if a pensioner owns a dacha, garage or other non-residential property for more than 5 years, he can sell it without paying any taxes.

Free travel to and from your holiday destination (for northerners)

Elderly retired Russians who do not work and live in the Far North (equivalent areas) are additionally provided with compensation for expenses when paying for tickets to their vacation destination and back. Such travel benefits for pensioners are provided once every 2 years and exclusively for movement within the country. There are two options for receiving benefits from the Pension Fund:

• travel payment;
• reimbursement of the cost (price) of purchased tickets.

Vacation benefits extend not only to travel: there are social vouchers to sanatoriums for retirees. To receive them, you must be placed on a special queue with the preliminary submission of a medical certificate about the need for sanatorium-resort recovery and treatment. Labor veterans are usually given preference in the queue.

How does raising the retirement age affect property benefits?

Due to the increase in the retirement age from January 1, 2019, there is no need to worry about property benefits. Pensioners still retain their right not to pay property taxes under the same conditions as before.

For pre-retirees (women over 55 years of age and men over 60 years of age), legislators have provided for the possibility of using property tax benefits provided for pensioners. But this opportunity remains only for a transition period (until 2028). As a result, men born in 1968 and women born in 1973 will be able to be released from the obligation to pay property tax only upon reaching the new retirement age limits (65 and 60 years, respectively).