How to return honestly earned 13% personal income tax: deduction for children

Amount of deduction per child

The amount of the tax deduction directly depends on the number of children supported by the taxpayer:

In order to correctly determine the amount of the deduction, it is necessary to line up the children according to their dates of birth (the oldest will be considered first, etc.). Moreover, even if the eldest child is already over 24 years old and a deduction is not provided for him, he will still be considered the first.

Note

: if spouses already have one child from previous marriages for which they pay alimony, then their common child will be considered the third.

In what cases can you get a deduction?

Deductions for children belong to the standard category and are regulated by Art. 218 of the Tax Code of the Russian Federation and are submitted monthly. Parents, adoptive parents, guardians, trustees and adoptive parents who have one or more children in their care or custody have the right to receive them.

A deduction is assigned if the child is under 18 years of age or if he is a full-time student. In this case, a deduction is also due for those months when students had an academic leave.

Svetlana can claim a deduction for each child, since Mikhail is under 18 years old, and Anna and Sergey are full-time students and are under 24 years old.

Calculation examples

Example 1. Standard deduction for one child

Conditions for receiving a deduction

From an employee of Fialka LLC, Petrova I.A. There is a child aged 5 years. At the same time, the monthly salary of Petrova I.A. is 40,000 rubles.

Tax deduction calculation

Since the child of Petrova I.A. a minor, she can take advantage of the standard tax deduction.

The amount of the deduction in 2020 is: 1,400 rubles.

Therefore, the income tax of Petrova I.A. will be withheld not from 40,000 rubles, but from 38,600 rubles. (40,000 rubles – 1,400 rubles).

Monthly Petrova I.A. will pay personal income tax in the amount of: RUB 5,018.

(RUB 38,600 x 13%) instead of RUB 5,200. (RUB 40,000 x 13%).

Consequently, she will save: 182 rubles.

(5,200 rub. – 5,018 rub.).

Deduction of Petrov I.A. will receive until September because it is in this month that her taxable income from the beginning of the year will reach the threshold of 350,000 rubles.

(40,000 x 9 months).

Thus, in the period from January to August 2020, Petrova I.A. can save: RUB 1,456.

(RUB 182 x 8 months).

Example 2. Standard deduction for several children (one of whom is over 24 years old)

Conditions for receiving a deduction

From an employee of Fialka LLC, Petrova I.A. there are four children aged 5, 9, 16 and 25 years old. At the same time, the monthly salary of Petrova I.A. is 40,000 rubles.

Tax deduction calculation

Deduction of Petrov I.A. has the right to receive only for three

minor children, but her eldest 25-year-old child will still be considered first.

The total amount of the deduction will be equal to: 7,400 rubles.

(1400 rubles (for the second) + 3000 rubles each (for the third and fourth)).

Thus, income tax will be calculated not from 40,000 rubles, but from 32,600 rubles.

(40,000 rubles – 7,400 rubles).

Consequently, monthly Petrova I.A. will pay income tax in the amount of: RUB 4,238.

(RUB 32,600 13%) instead of RUB 5,200.
(40,000 rub. x 13%) and save at the same time: 962 rub.
(5,200 rubles – 4,238 rubles).

Deduction of Petrov I.A. will receive until September, since it is in this month that her taxable income from the beginning of the year will reach the threshold of 350,000 rubles.

(40,000 x 9 months).

Thus, in the period from January to August 2020, Petrova I.A. will be able to save: RUB 7,696.

(962 RUR x 8 months).

Registration procedure

The very first basis for calculating a tax deduction when buying an apartment is the paid property tax. It must be paid before the end of the reporting period. Then you can return part of the income tax immediately after purchasing a home. The state provides the right to receive a tax refund within 3 years from the date of purchase of the apartment.

The procedure for receiving money is quite simple. There are two ways to get money:

• through the tax office;
• through the employer.

First way

If you decide to receive money through the tax office:

• you submit the entire package of documents along with the tax return to your territorial tax authority;
• write a statement that you want to receive money into your bank account.

The amount of charges will depend on the already repaid loan amount when purchasing an apartment and, if this process is extended over several years, then every year it is necessary to provide the tax service with all documents from the creditor bank about payments already made. Then the amount is gradually transferred as the mortgage loan is paid off.

Getting money through the tax authority is faster, but more troublesome, since you have to collect a full package of necessary documents and wait for their resolution.

Second way

If you decide to receive money at your place of work in the form of an additional payment to your salary. To do this, you need to receive a notification from the tax authority to your employer that you are entitled to an additional payment for the amount of return of the money paid when purchasing an apartment and provide it to your employer (to the accounting department). This must also be done every year until the full cost of housing is paid off. Then 13% is added to the salary, which was previously transferred to the budget as income tax.

The attractive thing about this method is that you receive an increased amount of salary every month, but this payment process is more drawn out in time. With a small salary, the money is returned very slowly and does not always make sense, so consider the size of your official salary before requesting a tax deduction. However, if you want to change your job, then you will have to receive the balance of the amount underpaid through your employer for the tax period through the tax authority, and for this you will also have to submit the appropriate documents.

Also remember that if you choose to receive money through your employer, you will not be able to take advantage of deductions for other purposes (for medical services, training, etc.).

If the property is common, then the amount of the deduction is distributed in appropriate shares among the payers who own the apartment. This also applies to married couples. Moreover, it is impossible to transfer your share of the deduction to another owner. However, you can write a statement that you want to transfer the entire deduction amount to the account of one of the owners. This is permitted by law. That is, in fact, you can refuse your share of the deduction in favor of another co-owner of the purchased apartment.

How to get a deduction through your employer

The procedure for obtaining a standard child tax deduction occurs in 2 stages:

The first stage is collecting the necessary documents

To receive a deduction for a child, the following documents are required:

1. Application addressed to the employer.
2. Child's birth certificate.
3. A document confirming marriage registration (Russian passport or marriage registration certificate).
4. Certificate from the educational institution, if the child is a student.
5. Certificate of disability, if the child is disabled.

If the employee is the only parent

Additionally you must provide:

• death certificate of the second parent.
• a document confirming that the parent is not married (usually a passport).

If the child has one parent

, then the tax deduction can be
doubled
, but only in cases where the paternity of the child has not been legally established, the second parent has died or is missing.

At the same time, the fact that the parents are divorced or fail to pay child support does not mean that the parent is the only one and, accordingly, does not give the right to receive a double deduction.

The second stage is the transfer of collected documents to the employer

The collected documents must be handed over to the employer at the place of work. After their consideration, the employee will be provided with a standard deduction for the child.

If you work for several employers at the same time, then the deduction can only be obtained from one of them.

How does the tax deduction work?

The amount of the deduction depends on the number of children. The first and second children are entitled to a deduction of 1,400 rubles each. The third and subsequent children allow you to deduct another 3,000 rubles from the amount of earnings withheld by tax.

The tax benefit continues until the child reaches adulthood. Moreover, if the child turns 18 at the beginning of the year, the deduction stops only after the end of the calendar year.

It is worth noting that the deduction is extended for the entire period of study if the child continues to receive education at a secondary or higher educational institution. But the maximum is up to 24 years old.

Moreover, even if the deduction is no longer provided for children over 18 or 24 years of age, they are still taken into account when calculating benefits for others. For example, if there are three children in a family, and one of them is 25, and the other two are under 18, then for the second they will give a deduction of 1,400 rubles, and for the third, already for 3,000 rubles.

For disabled children, the authorities provide a deduction at a higher rate. If a child is being raised by his own parents - 12 thousand rubles, and if he is being raised by adoptive parents or guardians - 6,000 rubles.

How much can you save with a tax deduction?

The amount of savings depends not only on the tax deduction limit, but also on the amount of salary. For example, a parent earns 40 thousand rubles a month and has two minor children. Thus, personal income tax will not be calculated on the full amount of the salary, but with a deduction of 2,800 rubles. The following is the method for calculating taxation:

(40000 – 2800)*13% = 4836 rubles.

As a result, the parent will receive the following amount:

40000 – 4836 = 35164 rubles

Without the benefit, the tax would be calculated from the full amount of the salary and would not be 4836 rubles, but 5200. It turns out that the deduction allows you to save 364 rubles per month, or 4368 rubles per year.

At the same time, it is worth making a reservation that 350 thousand rubles is the maximum amount of annual income at which a parent has the right to a deduction.

What documents do you need to collect to receive a tax deduction?

You can fill out an application for a tax deduction directly at work in the accounting department. The following documents will need to be attached to the application:

• a copy of the child’s birth or adoption certificate;
• a copy of a passport with a marriage mark or a marriage registration certificate (if the parents are married);
• a certificate from an educational institution confirming full-time education (if the child is a student or undergraduate).
• certificate of disability (if the child is disabled).

After submitting the documents, the accountant must calculate the deduction. If you did not submit documents immediately after the birth of the child, but after a few months or six months, the accountant will also recalculate the personal income tax for this period.

The deduction can be returned for up to three years, if you did not receive it previously. To do this, you will have to contact the tax office and prepare a standard set of documents, as well as a 2-NDFL certificate from work about income for previous years and a self-completed 3-NDFL declaration.

The tax office will check the documents for about three months, and if everything is in order with the documents, it will transfer the money to your account within a month.

How to get a deduction through the Federal Tax Service

If during the year deductions for the child were not provided or were not received in full, then they can be obtained at the end of the year through the tax service. To do this you need:

1. Fill out the 3-NDFL declaration.
2. Obtain a 2-NDFL certificate from the accounting department at your place of work.
3. Write an application for a deduction.
4. Prepare copies of documents confirming the right to receive a deduction (see above).
5. Submit the above documents to the territorial tax authority at your place of residence.

The verification of the 3-NDFL declaration and the documents attached to it is carried out within 3 months from the date of their submission to the Federal Tax Service.

Within 10 days after the end of the audit, the tax service must send a written notification to the taxpayer with the results of the audit (grant or refusal to provide a tax deduction).

After receiving the notification, you must come to the Federal Tax Service and write an application for a personal income tax refund indicating the bank details by which the money transfer will be made.

The funds must be transferred within 1 month from the date of filing the application for a personal income tax refund, but not earlier than the end of the document verification (desk audit).

Conditions for filing a tax deduction

It is important to remember the conditions that allow you to receive a tax deduction:

• a person who buys real estate with a mortgage in the country and wants to receive money is a citizen of the Russian Federation or lives and works in Russia for more than 183 days a year and is a resident according to official documents;
• a citizen has official income on which he pays taxes. If you receive unofficial income, it will be impossible to issue a tax deduction. Also, this is not always possible with a small official salary , then they may not return the entire amount. In such cases, it does not always make sense to apply for a deduction of taxes paid because the amount is too small;
• a citizen is purchasing real estate for the first time in his life (and the purchase is made with the help of a mortgage loan) and has never received a tax deduction before. The tax office is obliged to check this fact and give appropriate permission;
• the citizen pays the cost of the apartment and interest on the mortgage from his own funds. That is, it is impossible to get a refund in cases where the apartment is obtained from any enterprise or is purchased from relatives, colleagues, or a boss;
• The citizen-taxpayer has collected all the necessary documents that confirm the payment of interest on the mortgage loan through the bank, as well as documents confirming the registration of the mortgage.

Payment of a tax deduction is not possible if:

• housing was purchased from relatives, including guardians, adoptive parents, trustees or wards, parents, brothers and sisters. If an apartment is purchased from more distant relatives, then this is not considered a basis or reason for refusing to pay a tax deduction;
• the citizen has already used his right to a tax deduction earlier;
• the citizen who bought the apartment is a pensioner and makes payments only from his pension (officially he has no other income), since pensions are not subject to state personal income tax;
• the citizen is an individual entrepreneur and pays taxes in a special regime;
• The apartment purchased with a mortgage was paid for with budget funds. The same applies to maternity capital. If a tax deduction is still possible, then the amount of maternity capital is subtracted from the deduction amount. Moreover, if a woman applies for a tax deduction while on maternity leave, it can be issued and provided only after she returns to work after the end of her maternity leave. Even if the apartment was purchased before going on maternity leave, the deduction amount is calculated from income received during the period between going on maternity leave and the official purchase of the apartment. If this income is not enough to pay taxes, then the woman will receive the rest of the deduction amount after she returns from maternity leave;
• when purchasing an apartment with a mortgage, it was paid for by another person (an official employer, an enterprise or some third party).

The procedure for obtaining a deduction when registering with an employer

To receive a tax deduction through your employer, you must follow the following procedure:

• Collection of the required package of papers. The main list of documents confirming the right to such a deduction: The application is written directly from the employer.
• Photocopy of passport.
• Copies of documents confirming the right to benefits. Let's say that if an employee is claiming the standard child tax deduction, he needs to bring photocopies of his offspring's birth certificates.

When one legal representative refuses to receive a benefit, the second has the right to use it. Then, as an additional document, it is necessary to bring a certificate from the place of work of the second parent, which states that the standard tax deduction for personal income tax is not provided.

• Take the documents to the employer.
• Already on the payslip for the current month, the applicant will see the deduction provided.

A deduction can be provided solely on the basis of a personal request from the employee. Therefore, the employee must go to the accounting department himself and declare his right to the benefit or send an application by mail. If the application has not been written, the person will not receive a standard personal income tax deduction.

In life, an application for benefits is written immediately upon employment. However, if the beneficiary, for example, has more children, he needs to rewrite the application. After all, he has an additional right to privilege. The organization is not required to track the number of newly born offspring.

Many enterprises require you to write a benefit application annually. That is, in January new applications are collected from all employees. This is done in order to track whether the right to benefits has been lost.

Who is eligible for the standard child deduction?

• parents;
• stepmother and stepfather;
• adoptive parents;
• adoptive parents;
• guardians;
• trustees;
• divorced parents;
• parents deprived of parental rights.

The right arises if certain conditions are met:

The child is supported by someone who claims the standard deduction. Even if the mother or father is deprived of parental rights, but participates in providing for the child, they are entitled to a personal income tax refund.

This is stated in the Letter of the Federal Tax Service dated January 13, 2014 No. BS-2-11 / [email protected] “On the provision of a tax deduction.”

You must be officially employed, receive a white salary and pay income tax at a rate of 13%. Or, as stated above, transfer personal income tax on other income.

Who cannot claim the child tax credit:

• An individual entrepreneur is on the simplified tax system (simplified taxation system), since he pays either 6% or 20%, and not 13%.
• Individual entrepreneur on UTII (single tax on imputed income).
• An employee who bought a patent.
• Stay-at-home mothers, students, pensioners – they have no taxable income.

An individual entrepreneur pays personal income tax under the OSNO (general tax system) and therefore can receive deductions for children.

Super deduction: payment for our services only after receiving the deduction!

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Termination of the “children’s” deduction

Stop giving deductions when one of the following conditions occurs:

Scheme of actions for receiving the amount “in hand”

To calculate the amount of your salary in hand, you must follow the main steps:

• We calculate wages for the month.
• We determine the amount of the deduction and subtract it from the accrued salary.
• We calculate the amount of personal income tax of 13%.
• We subtract the tax received from the accrued salary.

Interesting information: Property tax benefit for pensioners: registration and receipt

The employee will receive the resulting indicator on the day of salary payment.