In accordance with the law, when calculating income tax, some individuals may receive a benefit in the form of a standard tax deduction. Due to the fact that the size of the salary depends on the amount of such deduction, quite often many employees have questions about what certificates and documents must be submitted in order to obtain such a right. In turn, accountants are required to correctly enter code 114 in the 2-NDFL certificate to reflect the deduction provided.
What is the deduction mechanism?
The employer acts as a tax agent for income tax. In this regard, the tax authorities closely monitor the correctness of the calculation of such deductions. Certificate 2-NDFL is the main tax register, which reflects all accruals and benefits.
Child tax deductions are made for all parents raising children under the age of eighteen. The privilege reduces the tax base by 1.4 thousand rubles. for the first and second child, and 3 thousand rubles for the third. If the child is educated in a government agency, such a deduction can be granted up to 24 years.
Tax return, deduction code 114
The form by which the organization reports to the tax authorities is a certificate with detailed information about the employee and the accrued amounts. Due to the fact that different types of deductions are used when calculating the value added tax, the legislators invented a special system of codes. Thus, the code 114 in the certificate 2-NDFL displays a child deduction provided in the amount of 1.4 thousand rubles. Encoding 115 and 116 is used to record benefits received for the second and third child, respectively. A complete list of codes used in the declaration can be found in a special directory.
What documents confirm the child deduction
The tax code clearly regulates the workflow, which confirms code 114 in the certificate 2-NDFL. To confirm the right to benefit, parents who have children under the age of eighteen must write a request for a child deduction and attach copies of all birth certificates to it. After reaching the age of eighteen, you need to submit to the accounting department an additional certificate from the educational institution, which will serve as confirmation that the child is studying and is dependent on parents. Only if all these documents are available, the tax agent has the right to reflect the code 114 in the certificate 2-NDFL. An annual update of documents is not required.
Why you might need an income tax certificate
A tax document such as 2-personal income tax has a fairly wide application. The main task of the registry is to confirm the income received and the accrued tax. In addition, it reflects all the employee benefits laid down and the amount of the payment transferred by the tax agent.
Certificate 2-NDFL is available upon request to various credit institutions, as well as to receive social subsidies and benefits. In this regard, citizens who have received such a certificate on their hands quite often ask the question: “What does code 114 mean?”
A certificate of income tax is provided by the accountant of the company at the first request of the employee, as well as annually after the annual reporting. 2-PIT must be completed in accordance with the tax accounting of the enterprise. Corrections and postscripts are not allowed in it. Such a document is signed by the director of the company, at the end a stamp is put. Only in this way the issued certificate has full legal force and can be submitted even in court.