Personal income tax 2020: deductions

Who can claim deductions

All individuals can exercise the right to receive a personal income tax refund if the following conditions are met:

The applicant has tax resident status: citizens of the Russian Federation and other states living in Russia for more than 183 consecutive days during the year.
Has an official source of income from which personal income tax is withheld and transferred to the budget.

If there are several sources of income and a part-time job, the applicant can use information about withholdings from only one employer of his choice to calculate the tax deduction.

Additional requirements are determined by the conditions of the tax benefit category.

Reasons for receiving the standard deduction

Standard deductions in the amount of 3,000 rubles are provided monthly directly to the employee if he participated in the liquidation of the consequences of the accident at the Chernobyl nuclear power plant, Mayak, or performed other work associated with the risk of radioactive contamination. As well as disabled military personnel (groups I, II and III) who received injuries (wounds) while on duty.

Heroes of Russia or the Soviet Union, participants in the Second World War, the Afghan War and some other categories of military personnel have the right to receive a tax benefit in the amount of 500 rubles monthly (a full list of categories of citizens is presented in Article 218 of the Tax Code of the Russian Federation).

Parents, adoptive parents and guardians of children under the age of majority can also exercise the right to a personal income tax refund. If there are two children in a family, for each child the tax base is reduced by 1,400 rubles. If the family has many children, a benefit of 3,000 rubles is provided for the third and each subsequent child. If there is a disability of groups I or II, parents and adoptive parents receive a deduction of 12,000; for guardians and adoptive parents the limit is less - 6,000 rubles. If children have only one parent who raises them independently, the amount increases by 100%.

When determining the right to a benefit, the age of the child is taken into account: benefits are provided for children under 18 or 24 years of age, subject to full-time study.

Example

Svetlana and Vladimir Nikiforov are the parents of three children:

Pavel, 23 years old, is a full-time student at the university;
Yulia, 19 years old, correspondence student at the same university;
Maria, 12 years old, studies at school.

Svetlana is a housewife, so only her husband can apply for deductions for her two children: Pavel (RUB 1,400) and Maria (RUB 3,000). If Svetlana goes to work, both parents will receive benefits when calculating personal income tax. Yulia is not entitled to deductions - she earns money on her own and is a correspondence student.

Example

Tereshchenko Ekaterina is raising two children on her own:

Nadezhda, 9 years old, schoolgirl;
Egor, 13 years old, disabled group I.

Ekaterina can apply for a deduction from the employer in the amount of 2,800 rubles for Nadezhda and 24,000 for Yegor. The right to increased benefits for a single mother will remain until she remarries.

Standard tax deductions for personal income tax in 2020

The categories of citizens who are entitled to receive these deductions are indicated in Art. 218 Tax Code of the Russian Federation. Deductions are provided for the employee and children.

Standard tax deductions for personal income tax in 2020 per employee:

500.00 rubles per month - for Heroes of the USSR and Russia, holders of all degrees of the Order of Glory, minors with childhood disabilities and other categories of taxpayers.
3000.00 rubles per month - for disabled people of the Second World War, liquidators of the Chernobyl Nuclear Power Plant, liquidators of nuclear accidents and other individuals.

The second type of standard deductions for personal income tax is for children. The following categories of taxpayers are entitled to take advantage of the deduction:

parents (including adoptive parents);
guardians;
trustees;
adoptive parents.

That is, individuals who support children. Deductions are provided until the child reaches 18 years of age or 24 years of age if he is a full-time student and is a cadet, intern, resident, undergraduate, or graduate student.

Deduction amount:

for the first child - 1400.00 rubles;
for the second child - 1400.00 rubles;
for the third child and subsequent - 3000.00 rubles;
for a disabled child - 6000.00 and 12000.00 rubles.

Only parents, guardians, trustees, and adoptive parents have the right to claim a double deduction.

The peculiarity of standard deductions: by their amount you can reduce the tax base for calculating personal income tax.

The tax base refers to the taxpayer’s income received as a result of work, as well as other payments due to the employee.

What social deductions can you get?

You can receive social benefits as compensation for the costs of training, paid treatment, donations, contributions to a non-state pension fund and additional contributions to the funded part of a future pension.

Art. 219 of the Tax Code of the Russian Federation provides for the following maximum amounts of tax deductions:

when paying for one’s own education, training of sisters and brothers, paid medical services, deduction of contributions to the funded part of a pension or transfer of contributions to a non-state pension fund, the maximum deduction amount is 120,000 rubles;
if payment is made for the education of children or wards - no more than 50,000 rubles;
the costs of expensive treatment are taken into account when determining the tax base in full.

When calculating social tax benefits, it is necessary to take into account the age of the children and the calculation period. If a child is under 18 years of age, you can receive a personal income tax refund for both education and paid treatment. It is possible to compensate for the costs of education for children under 24 years of age if they study full-time, but deductions for payment of medical services will no longer be denied. The tax base can only be reduced for the year in which the payment was actually made.

Example

In 2020, Irina paid for her tuition in the amount of 50,000 rubles. During the year, her expenses for the dentist and treatment of two children amounted to 80,000. In 2020, she will be able to apply for a tax deduction of 120,000 rubles, because such expenses are cumulative. In total, the state will return 15,600 rubles to Irina.

Social deductions for personal income tax in 2020

The execution of these deductions is regulated by Art. 219 of the Tax Code of the Russian Federation. Circumstances that allow you to issue a personal income tax refund:

Payment of contributions to charity. These include donations to non-profit and religious organizations. The deduction is provided in the amount of incurred and confirmed expenses, but not more than 25% of the amount of income received.
Payment for treatment of yourself, your spouse, children under 18 years of age, and parents. The deduction is provided in the amount of incurred and confirmed expenses, but not more than 120,000.00 rubles.
Pay for the education of your own, sisters, brothers, children under the age of 24. They provide the amount of expenses incurred, but not more than 120,000.00 rubles.
Payment of insurance premiums. They provide the amount of expenses incurred, but not more than 120,000.00 rubles.
Payment for conducting an independent qualification assessment. The limit is 120,000.00 rubles.

Refunds for education and treatment are issued for the tax period, which is considered a calendar year.

Property deductions

Property tax breaks are very popular among taxpayers. Both buyers and sellers of real estate can exercise this right. The main difference between this category of payments is the ability to carry over the balance to the next tax period.

The deduction is provided for the full cost of expenses, but not more than 2 million rubles, when purchasing or constructing housing with your own funds. If the property was purchased under a mortgage lending program, actual expenses are taken into account when repaying interest in an amount not exceeding 3 million rubles. Relatives or spouses cannot be parties to the purchase and sale agreement.

Calculating the amount of tax deductions when purchasing or constructing real estate also has a peculiarity: you can take into account not only the cost of an apartment or house, but also the costs of construction, finishing materials and payment for work.

The procedure for applying tax deductions differs for purchase and sale. Thus, in the case of the sale of movable or immovable property, the applicant does not receive a refund from the state, but the opportunity to reduce the tax base (income from the sale).

When selling real estate (apartment, land, cottage, garden or residential building), the taxpayer can submit documents and reduce his income from the sale by the amount of expenses he incurred in acquiring it. If financial documents were lost or the property was owned for less than the period prescribed by law, you can receive a deduction in the amount of 1,000,000 rubles.

When selling a car, garage, non-residential premises and other property, the owner can also reduce his income by the amount of confirmed expenses. If the documents have not been preserved or the minimum period of ownership has not been exceeded, a property deduction in the amount of 250,000 rubles is provided.

When determining the minimum period of ownership, the type of property, method and date of registration of ownership should be taken into account:

if the property was registered as ownership before 01/01/2016, the minimum period is 3 years;
if the property was received under a gift agreement from a close relative, as an inheritance, under an annuity agreement or as a result of privatization after 01/01/2016, the minimum period is 3 years;
in other cases, to obtain the right to a property deduction, the minimum period is 5 years.

Example

Stanislav and Natalya bought an apartment in an old building for 1.8 million rubles. To renovate their home, the young family purchased finishing materials worth 600,000. Having invited a team of builders to carry out the finishing work, the couple entered into an agreement in the amount of 400,000 rubles. Actual expenses amounted to 2.8 million. Only Stanislav works in the family; Natalya has no official income, so only her husband can apply for a deduction in the amount of 2 million rubles. If the wife had gotten an official job a year earlier, the couple would have been able to receive the benefit in full - 2.8 million rubles.

Example

Already acquaintances Stanislav and Natalya decided to sell the apartment after 2 years for 3.2 million rubles. In the process of preparing the declaration, it turned out that documents confirming the costs of purchasing materials and paying for finishing work were lost. Spouses can confirm expenses only in the amount of 1.8 million rubles. In this case, they can use three calculation options:

(3,200,000 – 1,000,000) × 13% = 286,000 - this is exactly the amount a married couple will have to pay as personal income tax to the state budget if they take advantage of a property deduction in the amount of 1 million rubles;
(3,200,000 – 1,800,000) × 13% = 182,000 – the amount to be paid to the budget if the spouses do not find documents confirming the costs of repairing the apartment;
(3,200,000 – 2,800,000) × 13% = 52,000 – the amount to be paid to the budget if the spouses find documents confirming the costs of repairs.

If the apartment was registered as shared ownership and sold under one contract as a single object, the property deduction will be divided between the spouses in proportion to the size of the shares. If 2 contracts are drawn up, each owner will be able to take advantage of a benefit in the amount of 1 million rubles.

Example

Stepan Rogozov purchased a garage in 2020 for 450,000 rubles. In 2019, he put it up for sale at a price of 540,000 rubles. Due to the loss of the purchase agreement, he is unable to confirm his purchase expenses. In this case, to calculate the tax base, Stepan can take advantage of the right to a tax deduction in the amount of 250,000 rubles. After selling the garage and filing a declaration, he will have to pay personal income tax in the amount of 37,700 rubles:

(540 000 – 250 000) × 13% = 37 700

Taxpayer Stepan would have to act in a similar way if instead of a garage there was a car.

Property tax deduction for personal income tax in 2020

The execution of these deductions is regulated by Art. 220 of the Tax Code of the Russian Federation. The deductions themselves are divided into two categories:

deductions for expenses for the purchase of property;
deductions upon sale of property.

If a taxpayer sells property, for example, an apartment, which was purchased less than 3 years ago, he must pay income tax on the income received to the state treasury. But if he has documents that confirm the amount of expenses for the purchase of the object being sold, personal income tax is paid precisely from the amount of income received.

Let's give an example.

Sakharov V.V. purchased an apartment in 2020 for 1,500,000.00 rubles. In 2020, he sells it for 1,800,000.00 rubles. He has documents confirming that he purchased the property for 1,500,000.00 rubles. Accordingly, he must pay tax on the amount of 300,000.00 rubles (1800000-1500000).

If there are no documents confirming the fact of purchase of the object being sold, the state provides a deduction in the amount of 1,000,000.00 rubles.

When purchasing real estate (apartment, room, house, land plot, shares/shares in these objects), the state provides a tax deduction in the amount of 2,000,000.00 rubles. Of this amount, the taxpayer has the right to return 13%. That is, 260,000.00 rubles. This amount is received immediately if personal income tax was paid in the same amount on the taxpayer’s income during the tax period. In practice, such cases are rare. As a rule, tax deductions for purchasing property are received over several years.

Let's give an example.

From the salary of S.V. Ivanov, income tax in the amount of 3,500.00 rubles is withheld monthly and transferred to the state treasury. For the tax period, the amount of personal income tax transferred amounted to 42,000.00 rubles. This is the amount he will receive as a tax deduction for the tax period. The balance of the property deduction is carried over to the following periods.

If the property was purchased with a mortgage, the state provides a property tax deduction for the cost of paying mortgage interest in the amount of 3,000,000.00 rubles. Of this amount, the taxpayer can return no more than 390,000.00 rubles.

Who can take advantage of the professional deduction?

The following persons have the right to receive a deduction or return part of the tax paid:

lawyers, notaries engaged in private practice;
individuals who are not registered as individual entrepreneurs and provide services under a civil contract;
Individual entrepreneurs working on the general taxation system;
individuals receiving royalties.

Representatives of the first two categories can take into account all expenses associated with the provision of services when calculating the amount of tax if they have supporting documents.

Entrepreneurs on OSNO have the opportunity to reduce their income by 20% of the amount of revenue received without collecting documents and keeping records of expenses.

The amount of deduction for the author depends on the type of work performed and can range from 20% to 40% of income (clause 3 of Article 221 of the Tax Code of the Russian Federation).

Example

Two friends decided to make money by hosting wedding events. Sergey is a professional photographer, Dmitry acts as a presenter, comes up with scripts and competitions. Sergei earned 4,000 rubles from the newlyweds’ photo shoot. He has the right to reduce the amount of income by 30% (1200 rubles), and from the difference he will pay 364 rubles as personal income tax:

(4000 – 1200) × 13% = 364

Dmitry earned 8,000 rubles; for creating a script, he can take advantage of a 20% deduction, reduce his income by 1,600 rubles and pay personal income tax in the amount of 832 rubles:

(8000 – 1600) × 13% = 832

Using the professional deduction, Sergey and Dmitry saved 156 and 208 rubles, respectively.

Social tax deductions in 2020: amounts

All indicated amounts of deductions are the values on the basis of which the amount of tax refund from the budget is calculated. The formula for calculating the refund amount is very simple: 13% of the expenses for which a deduction is provided. In this case, the refundable tax cannot exceed the personal income tax paid at a rate of 13% for the corresponding tax period.

For example, for expenses on study and treatment, a person can return a maximum of 15,600 rubles (13% of 120,000) from the budget. For child education expenses - a maximum of 6,500 rubles (13% of 50,000).

If the amount is spent on charity, it is reduced to 25% of the tax base, i.e. from the amount of a person’s taxable income for the year. For example, if a citizen earned 1 million rubles during the reporting year. and of which he gave 350 thousand rubles. for charity, then he can reduce his taxable income to 750 thousand rubles by applying the maximum deduction:

1,000,000 x 25% = 250,000 rub. - the amount of the deduction,

1000000 – 250000 = 750000 rub. – taxable income.

What investment deductions can you get?

Another type of tax deduction is investment. Taxpayers who invest in securities or place them in individual investment accounts (IIA) can take advantage of this right.

When transactions with shares, bills and other types of securities, only the profit received is taken into account to calculate the tax base. In the case of investment accounts, either the positive difference or the investment amount can be chosen as the tax base.

Example

Tatyana Sviridova contacted the bank and opened an individual account, transferring 250,000 rubles to it. According to Art. 219.1 of the Tax Code of the Russian Federation Tatyana has the right to receive a tax deduction 3 years after opening an investment account. The maximum amount is the full amount of profit or up to 400,000 rubles (but not more than the amount of deposited funds), if the investor chooses the amount of investment as the reducing amount.

After preliminary calculations, Tatyana settled on the last option. The amount of the tax deduction was 250,000 × 13% = 32,500 rubles, which the state returned to her bank card.

Transfer of losses on transactions with securities and other financial instruments

If investments in securities or futures transactions have resulted in losses, the taxpayer can carry them forward to a future period within 10 years from the date of their receipt.

When calculating the amount of loss, the following conditions must be met:

transactions must be carried out only on an organized market (stock, currency, trading exchanges);
losses can be carried forward only for the corresponding types of transactions (losses on securities are not taken into account when calculating the tax base for forward transactions and vice versa).