Tax deduction through the employer. What it is? How and when can I use it? What needs to be prepared to translate ideas into reality? The answers to all of the above questions and not only will certainly help to deal with tax type deductions. It is not as difficult as it seems.
Description
Making a tax deduction is the process of returning money for some civil expenses. Usually this operation is carried out after the acquisition of large property, payment for treatment or educational services. The person will be returned the money in the account of the transferred income tax.
Today you can get a tax deduction through the employer or on your own at the Federal Tax Service. Let us dwell on the first scenario. It raises the most questions.
Types of Deductions
What exactly are the returns and what can I issue them for? There are a lot of options for the development of events.
Today you can refund for:
- mortgage
- purchase of real estate without a loan;
- payment for educational services (yourself, brother / sister or children);
- medical service.
These are the most common layouts. The first two deductions are called property deductions, the second two - social. Knowing this is extremely important. Otherwise, you may encounter the impossibility of refunding money for taxes.
Refund Limits
Obtaining a tax deduction through the employer, as well as an independent solution to the issue, has certain limitations. The legislation regulates the deduction limit, that is, the amount is determined, exceeding which it is no longer possible to receive a benefit.
First, in general, thirteen percent of the amount of expenses, but no more than the current restrictions, is reimbursed for a transaction or service. You can’t demand more money than a citizen transferred to the state treasury in a given tax period.
Secondly, there are limit amounts of deductions. They look like this:
- property return - 260,000 rubles;
- mortgage - 390,000 rubles;
- social deductions - 120,000 rubles;
- for all social returns per year - 15600 rubles;
- for the training of brothers, children or sisters - 50,000 for one person as a whole.
Costly treatment can circumvent these limitations. It is reimbursed in the amount of 13% of the costs incurred by the citizen.
Basic conditions
It is not so difficult to issue a tax deduction through an employer. Moreover, the citizen will be freed from paperwork, which causes people a lot of trouble. But we'll talk about this later.
First, find out under what conditions a potential recipient of funds can apply for a deduction. The following are the requirements put forward by the state:
- the presence of citizenship of the Russian Federation;
- the person has an official place of employment;
- the potential recipient of the return concluded one of the previously indicated transactions in his name and from his funds;
- a person transfers personal income tax in the amount of thirteen percent.
Accordingly, if a person works informally or pays in the form of taxes on income more / less than the specified interest rate, the right to deduction from him is canceled.
Important: if the previously specified limits are exhausted, a refund cannot be requested. It will simply be refused.
Features of the deduction through the head
Tax deduction through an employer is a process that will ultimately differ from a similar transaction conducted directly by the Federal Tax Service. What exactly?
A person will have to collect fewer documents, and he will also need to fill out a special application form. You can ask him both in tax, and from your boss.
In addition, the tax deduction for treatment through the employer (or for any other operation) will be expressed by the exemption of the subordinate from the payment of personal income tax. A deduction will allow you to receive the full amount of your salary without income tax. How long? As much as it takes to exhaust the required return. The usual tax deduction in this case is expressed as a one-time payment in the prescribed amount. The salary of a citizen will not be affected.
Instructions for receipt
How to return a tax deduction through an employer? With proper and timely preparation, there will be no problems.
In general, the instruction for the implementation of the task looks like this:
- Prepare a package of documents. It will vary depending on the situation. With possible variations of the documentation for a particular case, we will get acquainted later.
- Write a request for a refund for the costs incurred.
- Submit a request to the employer.
- Wait for an answer from the authorities and the Federal Tax Service.
If a citizen has correctly prepared for the operation, he will be refunded. After a positive response to the application, it remains simply to receive a salary in full, without paying income tax.
Important: because of this method of cost recovery, not all citizens are interested in deductions through the employer.
Property return - documents
The property tax deduction through the employer can be requested quickly and without much difficulty. The main thing is to collect a certain package of documents. It, as already mentioned, will vary depending on the situation.
How to return a tax deduction through an employer? To return the property type will have to prepare:
- identification;
- contract of sale;
- USRN statement;
- return application;
- act of acceptance of real estate;
- marriage certificate (if any);
- receipt of transfer of money for the transaction.
When applying for a tax deduction through an employer, a citizen will not have to prepare an income statement and tax reports. This will be done by the boss.
Refund for mortgage and interest on it
How to apply for a tax deduction through an employer? The answer directly depends on what type of return the subordinate wants to receive. What is required to deduct a mortgage and interest on it?
Under such circumstances, you need to prepare and bring to your boss:
- identity document;
- certificates of ownership of the property;
- mortgage agreement;
- certificate of transfer of property;
- loan interest payment schedule;
- statements confirming the fact of transferring money for a mortgage.
In addition, it is recommended to take with you:
- certificates of marriage or its termination;
- birth certificates of children.
The last two papers may come in handy if the mortgage property has several owners. There is nothing difficult or incomprehensible in this.
Treatment
Getting a tax deduction through an employer is easier than it sounds. Only this scenario is not very interested in the modern population. This is due to the features of the provision of payments.
When requesting a refund of income tax for treatment and medicines, the following components will be useful to the applicant:
- any identification document;
- contract for the provision of medical services;
- checks for payment of services provided and purchase of medicines;
- extract with prescriptions and a doctor’s opinion;
- medical company license;
- work permit of one or another specialist (if this provides for a profile of his activity).
If you need to request a refund for the treatment of a close relative, you will additionally have to bring along a relationship certificate between the patient and the payer. They can serve:
- certificates of adoption or birth;
- certificate of marriage.
It is advisable to bring all statements along with their copies. So it will be possible to cope with the task with minimal difficulties. Not all employers will accept the original documentation and copy them on their own.
Educational Services - Returns Documentation
Need to get a tax deduction through your employer? Documents to achieve the desired goal will, as already noted, differ. In each individual situation, you will have to prepare different help packages.
Earlier it was said that the boss can provide a deduction for educational services. Usually, the corresponding operation provides for the presentation of the following statements to the employer:
- student certificate;
- contract for the provision of educational services (in the name of the recipient);
- extracts confirming the fact of transferring money for educational services;
- organization license;
- specialty accreditation;
- documents confirming kinship with the student (if necessary).
An application for a tax deduction through an employer should not be forgotten either. Without an appropriate application, a citizen will not be able to claim a refund.
Standard Return - Description
The main deductions faced by modern citizens were considered. But there is one type of return, laid down only to certain categories of subordinates. We are talking about the standard tax deduction for children.
Under such circumstances, the tax base when calculating personal income tax will be reduced by one or another amount. It directly depends on the number of children in the family. At the same time, only those who receive less than 350,000 rubles in salary can apply for a refund.
Standard Deduction Size
A standard tax deduction through an employer can be requested by every officially working citizen if he has minor children. As we have said, returns are available in certain sizes.
Namely:
- 1400 rubles - the presence of one or two children;
- 3000 rubles - 3 or more children in the family;
- 6000 rubles - to adoptive parents or guardians of a disabled child under the following conditions;
- 12,000 rubles - to parents of children with disabilities under 18 years old or for a student with disabilities under 24 years old.
The deduction is provided in the indicated amounts for each child. Both mothers and fathers can exercise this right. If the parent has a single status and he has not married, a double refund is allowed.
Help for standard return
How to return the deduction through the employer? We got acquainted with the most common layouts. But what if you want to request a standard deduction for children? Instructions for the implementation of the task will be exactly the same as in the situations described previously. The difference lies only in the package of documents necessary to bring ideas to life.
A tax deduction through the employer is provided if a citizen brings to the authorities:
- petition of the established form;
- identity document;
- SNILS;
- birth or adoption certificates of children;
- certificates of marriage.
In some cases, it may come in handy:
- statements of the death of the spouse;
- documents depriving the second parent of the relevant authority;
- spouse's notarized refusal of deduction.
In reality, everything is simpler than it seems initially. Each conscientious employee can request a tax deduction through the employer. Standard returns will stop when children reach 18 years of age.
Recency
Next, we consider the features of obtaining deductions of social and property type. These returns have a limitation of treatment. After a certain period of time for certain transactions, money will not be returned.
The limitation period for tax deductions in Russia is 3 years. During this period, a person can apply to the Federal Tax Service or to the employer for income tax refunds. Moreover, a refund is allowed immediately for 36 months. This is very convenient, especially when applying for a tuition / mortgage deduction not through your boss.
Change of job and part-time job
We found out how to apply for a tax deduction through an employer. But what if the citizen changes his place of employment? In such circumstances, you can claim money from the new boss from the next calendar year. In two places at the same time the service is not provided.
If a person works concurrently, it is allowed to receive returns in several places at once. In addition, the deduction will have to indicate the distribution of funds. Because of this, many are simply content to return from one employer.