Standard tax deduction: sizes, terms of provision

In determining the tax base, the income of an individual taxed at a rate of thirteen percent is reduced by the amount of standard tax deductions. For income taxed at different tax rates, the deductions are not applicable.

Calculation Period

The tax period for a standard tax deduction is considered to be a month. The tax base for a citizen income tax may be reduced monthly by the amount of this deduction.

Deduction recipient

Individuals whose income is taxed at an income rate of thirteen percent may receive a deduction for this tax. If there is no official earnings, no deduction is provided.

The right is declarative in nature. To apply for a fiscal deduction, you need to apply for a standard tax deduction. It is not necessary to require a statement from an employee on an annual basis. Standard deductions can be provided from year to year on the basis of a single application.

Types of Deductions

The Tax Code of Russia contains standard tax deductions of the following types:

• on the taxpayer (citizens who meet certain conditions);
• on children of the taxpayer.

Standard deductions are provided to the citizen after a personal statement about the desire to receive fiscal benefits to the tax agent (employer) or to the inspection and the presentation of supporting documents. There is no legalized standard application for a standard tax deduction.

Employee deduction

The standard tax deductions for personal income tax on a taxpayer have a number of features:

• The right to a standard deduction for an employee does not have any restrictions either in monetary size or in the limit of the received income of a taxpayer citizen.
• If an individual works for several employers at once, then he can submit an application for a deduction only at one place of professional activity. An employer is not required to check if the taxpayer is working elsewhere. In order to avoid misunderstandings, a citizen must include in his application a clause confirming that the applicant is notified that the deduction can be provided only by one employer, and undertakes to immediately inform the employer's accounting department in case of applying for a deduction to another agent.
• The deduction has the right to accept not only the employer with whom the employee works under an employment contract, but also another tax agent (individual entrepreneur, notary, lawyer who has established a law office, a separate division of a foreign company in Russia).
• With respect to income from the sale of property, agents do not provide standard tax deductions.
• If the employee has periods of non-receipt of labor income, then the right, according to the law, to the tax deduction is not canceled, and the deduction is accumulated. Standard tax deductions cannot be used for years and cannot be summarized. Accumulation is only for the calendar year. If at the end of the year due to the transfer of fiscal benefits, the employee formed an excessively paid amount on the tax on his income, then you can return it yourself by contacting the tax office.
• If a citizen has the right to claim two deductions (in the amount of five hundred rubles and in the amount of three thousand), then a deduction is provided with a maximum amount (three thousand rubles).
• If a citizen claims the deduction as a taxpayer belonging to a certain category and to a deduction for his child (s), then he is given both deductions (for the taxpayer and for the child).

Documents provided to the employer to confirm the legal right to a standard deduction for the employee:

• Employee application for standard income tax deduction.
• Documentation of the legal right to deduction (medical certificate, social examination document, certificate of a Hero of Russia or the USSR, certificate of a combatant or war veteran).

If the taxpayer decided to contact the IFTS at the place of registration with the declaration of form 3-NDFL, then he must attach to it a statement of income for the year according to form 2-NDFL, confirming the deduction of documents and a written statement addressed to the head of the tax office according to the sample.

Standard tax deduction of three thousand rubles

The following categories of taxpayers are entitled to a fiscal deduction in the amount of three thousand rubles for each month of the tax period:

• Participants, liquidators of the consequences of the explosion at the Chernobyl nuclear power plant, the industrial site "MAYAK", including those who suffered from radiation sickness and other specific diseases.
• Military personnel and civilians involved in the construction of the Shelter.
• Testers of nuclear weapons (including underground, underwater), military radioactive substances.
• Participants in the assembly of nuclear charges.
• Disabled WWII.
• Disabled I and II groups from among the military personnel.
• Disabled persons equated for security with military personnel.

A deduction of five hundred rubles

A tax deduction of five hundred rubles for each month of the tax period is provided to the following groups of citizens:

• Heroes of the USSR and Russia.
• Persons designated by the Order of Glory of three degrees.
• Participants of the Second World War.
• Disabled people of the first and second groups and disabled since childhood.
• Persons who are residents of besieged Leningrad during the Second World War were in the city from September 8, 1941 to January 27, 1944.
• Prisoners of concentration camps during the Second World War.
• People who donate their bone marrow to save the lives of others.
• Persons who became ill and suffered radiation sickness as a result of the Chernobyl accident, PA "Mayak".
• People evacuated from the territories of the defeat after the accident at the Chernobyl nuclear power plant, the Mayak production facility.
• Participants who performed an international duty with decisions of public authorities in the Republic of Afghanistan.
• Persons who took part in hostilities by decisions of the authorities in Russia.
• Parents of military personnel who died in the defense of the country.
• Spouses of the deceased servicemen until their re-entry into a registered marriage.

Standard tax deduction per child

A fiscal deduction is granted to parents, including adoptive parents and guardians. From the amount of the monthly salary, the monetary amount not subject to fiscal tax is deducted, and the remaining amount of income is multiplied by thirteen percent of the tax. The deduction for children is granted to a taxpayer citizen up to a month in which his total income on an accrual basis will reach three hundred and fifty thousand rubles.

Conditions for providing standard tax deductions in 2018:

• The child's age must not exceed eighteen years.
• For a child studying in a full-time institution of higher education, the maximum age is twenty-four years.
• The salary of the citizen-recipient of the deduction for the calendar year on an accrual basis should not exceed three hundred and fifty thousand rubles.
• A deduction for any child is granted regardless of whether the deduction was presented to previous children.
• If the spouses have a common child and children from previous marriages, the common child is considered the third.
• The right to double deduction is for single parents who are not registered in a marriage. A parent is recognized as the only one if the second parent is declared dead or missing (or an application for recognition is filed) or the dash in the father’s column is indicated in the birth certificate.
• Moreover, persons whose children are located outside the country, a tax deduction is provided on the basis of documents notarized by the competent authorities of the state in which the children live.

Features of the calculation of the deduction for children

Standard deductions for children with disabilities are added up. For example, the first child in the family is a disabled person, the fiscal benefit will be thirteen thousand four hundred rubles (one thousand four hundred plus twelve thousand).

The refusal of the first parent from the deduction in favor of another occurs on the following conditions:

• the child is provided by the parent;
• the parent has an official taxable income;
• income on an accrual basis does not exceed three hundred and fifty thousand rubles;
• one parent submits a refusal of a standard deduction to his agent, and the other a double deduction to his agent;
• a disclaimer does not require certification by the employer;
• a certificate in the form of 2-NDFL of the parent who refused the deduction is submitted to the employer, providing the deduction in double amount, every month until the moment when the income exceeds three hundred and fifty thousand rubles.

Granting deductions to guardians and trustees

Features of obtaining a tax deduction:

• Guardians, trustees cannot transfer their deduction rights to other people.
• The guardian (trustee) in a single person has the right to double deduction.
• Upon marriage, the only guardian (trustee) does not lose the right to double deduction.
• The spouse of the guardian (s) does not have the right to a tax deduction in relation to the ward child (s).
• Deprivation or parental rights of the mother and father of children does not affect the size of the deduction of the guardian (trustee) in a single person.
• The guardians (trustees) have the right to deduction until the wards reach the age of eighteen.
• To submit a double deduction application, no supporting documents are required.

Where to get a deduction?

There are two ways to get a deduction for children:

• Contact the employer's accounting department with the application and the application of the required documents (birth certificate of children, certificates from educational institutions about full-time education of children).
• Contact the tax office with a completed declaration of form 3-NDFL.

Is a deduction necessary?

The process of applying for a standard deduction at work is very fast and easy for a person. Given the modest amount of payment, many citizens do not use their right to a fiscal deduction. To declare your right or not is up to you.