Tax deductions are a kind of privilege that the state provides to parents. Depending on the number of dependents, the employee may pay a smaller amount to the tax service, leaving himself “cash”. Each deduction has its own number, a kind of code. It is he who is reflected in the certificate in the form 2-NDFL, and is also taken into account when filing a tax return. Also, this code is indicated in the tax return. One of the most common is the deduction for the 114th.
What is the essence of the tax deduction?
A tax deduction is a specific figure, which, as the name implies, is deducted from the employee’s total salary. That is, this is the amount of money that is not taxed. These amounts vary and depend on a number of factors. For example, the number of children, as well as the degree of relationship. That is, for foster children, provided that they are disabled, the amount may be different. Also, increased deduction amounts apply to those with widow or single mother status.
In a particular case, a parent accounts for 182 rubles of benefit per child. That is, it is this amount that goes into the pocket of the employee, not the tax service. However, it makes sense to consider each case separately, since it is possible to identify any fundamental nuances.
What relies on the first child? Deduction Code - 114
The first child relies on a deduction in the amount of 1,400 rubles. Of course, if the child is not brought up by a widow or a single mother. By the way, a document in form 25, which is received by single mothers in the registry office, may also be present with the father, who himself is raising a child. However, this is an isolated case that many employers forget about.
Thus, if the employee has provided all the necessary documents, the accountant must indicate in the program 1C “Salary and personnel management” the required deduction code –114. Thanks to this, the employee will use this benefit every month. It is worth noting that the deduction is granted from the month when all documents are submitted. By the way, they stop if the total employee income for the year exceeded three hundred and fifty thousand rubles.
What documents do accounting need?
To receive the deduction for code 114, the employee must provide the accountant with the following documentation:
- Application in the form established by the enterprise or in free form, if there is no regulated sample. Here you need to indicate your data, last name, first name and patronymic of the child, as well as his date of birth. It also makes sense to write which documents are provided.
- Copy of the birth certificate of the child. The mistake is to provide a copy of the passport. Even if the child is already 14 years old and he has an identity document, in order to receive a deduction for 114 or another code, it is necessary to provide a birth certificate. This is due to the fact that it indicates who exactly is the parent.
- Certificate from the educational institution. This document is provided if the child is already 18 years old, and he is studying full-time. For "correspondence students" personal income tax deduction (114 code) is not provided.
- Certificate in the form 2-NDFL, if the employee gets a new job. This helps to track the total amount of income for the year, and also does not give the employee the opportunity to receive a deduction for one month twice, but from different employers.
Change history
It is worth noting that in personal income tax the deduction code 114 has changed its name more than once. For example, the described number was assigned to him only in 2012, when it was decided to separate the first and second children with different codes, despite the fact that the sum on them relies on the same.
So from the end of 2016, new changes have occurred. In 2-NDFL, the deduction code 114 changed its number to 126. This is exactly what the code provided for the first child to parents looks like now.
It is not always possible to see the deduction code and its amount in the pay slip provided by the employer. Therefore, the employee has the right to independently calculate the amount of tax. To do this, it is necessary to subtract the deduction from the total payroll. In the case of code 114, this is one thousand four hundred rubles. And the result must be multiplied by thirteen percent. That is how much an employee must pay the tax service.
Deduction codes in certificates and declarations
In the certificate on the 2-NDFL form, which is accepted by the tax inspectorate and most credit organizations, much is built on codes. Here you can find digital signs of the employee’s income, and, of course, all deductions for children. Code 114 is located immediately below the employee income columns. It is worth noting that this certificate does not indicate in which month the deduction was provided, only the amount is indicated on an accrual basis from the beginning of the calendar year or from the moment the company began to work.
In the tax return, which is also called 3-NDFL, you can also indicate these codes that the employee uses. However, a program that can be downloaded from the official website of the tax service will help to do this competently.