Any officially employed person knows that every month the employer transfers income tax to the Federal Tax Service from his salary. It makes 13% of the income. This is a necessity, and one has to put up with it.
Is a tax refund possible when buying a car?
Most taxpayers do not even hope to ever get that money back. However, it is worth knowing that there are a number of cases when it is possible to return the paid income tax or at least part of it.
On the other hand, one can often come across the question of whether income tax refund is possible when buying a car.
For both categories of citizens, we say that the Tax Code defines a list of cases when such a procedure is possible. You can get back the money paid to the state:
1. If you have been trained on a paid basis in institutions licensed for educational activities.
2. If you paid for the education of your children in such institutions.
3. If you were forced to use paid medical services or purchase expensive medications.
4. If you additionally pay contributions to the funded part of the pension.
5. If you participate in a private pension insurance program and pay contributions.
6. If you are engaged in charity.
7. If you purchased or participated in the construction of housing, both at your own expense and at the expense of borrowed funds. This also includes the repayment of interest on mortgages.
As you can see, income tax refund when buying a car is not provided.
Why keep documents
However, buying a vehicle, it makes sense to keep all the documents drawn up during the transaction. In particular, this applies to the contract of sale and receipt (check) of payment or receipt, if the car was bought "with hands". You may need them if you decide to sell your iron horse in less than three years. As you know, if a citizen received income, he must pay a 13% tax. Accordingly, after the sale of a car, part of the proceeds will have to be given to the state. But there are cases when this can be avoided or the tax burden can be reduced.
- If you owned the car for more than three years, then after its sale you will not have to pay tax.
- If you have been the owner of this vehicle for less than three years, then you are entitled to a tax deduction. That is, you can reduce the amount with which you have to pay 13%. If there are documents confirming that at the time of purchase you paid more for the car than you received at the time of sale, you will be exempt from tax. If the selling price is higher than the purchase price, then you can reduce the tax base by the amount indicated in the documents drawn up at the time of purchase. In the event that supporting documents are not preserved, the property deduction as much as possible can be equal to only 250 thousand rubles.
As you can see, despite the fact that tax refund is not possible when buying a car, storing documents still makes sense.
Required documents
But back to the cases when it is still possible to get back the money paid to the state. To complete this procedure, you will need a income tax return declaration. It is filled in the approved form 3-NDFL. It indicates your personal data (name, passport information, income, expenses for training, treatment or purchase of housing, etc.). This form is submitted to the tax office at the place of registration. At the same time, it is necessary to submit documents to the inspector for the return of income tax. These include:
- Certificate from the employer - 2-personal income tax.
- Passport and copy of the page with general information and registration.
- Copy and original TIN.
- A copy of a savings book or document indicating the current account where the funds should be transferred.
- Receipts of payment for tuition, for housing, for treatment, etc. (copy and original)
- Child's birth certificate, if a deduction for his education or treatment, as well as a copy of it, is due.
Special cases
This is a general list. In addition, for each case, other documents will be required. So, to receive a social deduction for training, you will need a contract for the provision of services and a license of an educational institution. When reimbursing the costs of treatment, in addition to the contract, a certificate from the clinic’s bookkeeping is also useful. Obtaining a property deduction for the purchase of housing will not do without a purchase agreement, certificate of registration of ownership, as well as a loan agreement and interest receipts, if there is a mortgage loan. Naturally, situations often arise when the list of documents may change. Therefore, each case must be considered individually.
Income tax refund, deadlines
The 3-NDFL declaration and related documents are filed after the year in which the tax has been withheld, and there have been circumstances giving the right to deduction. If at the same time a certain income was obtained, for example, the sale of a car or apartment, then the declaration must be submitted no later than April 30 of the next year. If there were no such cash receipts, then documents can be submitted at any time over the next three years. After submission of papers, they are subject to desk verification. Within a month after its completion and the submission of a tax refund application, the money is transferred to the specified current account.
Conclusion
Despite the apparent complexity, there is nothing complicated in the procedure we are considering. Of course, it is not possible to return income tax when buying a car, but you can return part of the cost of training in a driving school, refresher courses or even a child’s stay in kindergarten.