Personal income tax or personal income tax in abbreviated form is the percentage collected from the employee’s salary in favor of the state. It would seem that the percentage of retention is fixed. However, there are a number of individuals who may receive the so-called tax deduction. It is provided both for the employee himself and for his minor children. It is worth noting that both their children and adopted children are taken into account. Of course, when providing a package of documents.
What is the essence of this deduction? Pros for the employee
A tax deduction is a benefit for certain individuals. That is, the employee who provided all the necessary documents can use the right to receive a standard personal income tax deduction.
The accountant enters all the data into the program “1C: Salary and Human Resource Management”, after which the employee pays less taxes. This is achieved due to the fact that the tax base is subject to monthly reduction by a certain amount of deduction. That is, part of the income is not taxed, and the employee receives a certain amount “on hand”, and does not give it to the budget.
Also, in some cases, it is noted that the deduction may be the amount that is returned to the citizen after the end of the tax period. To do this, you must submit documents to the tax office, fill out a declaration. All this can now be done on the official website without leaving home.
Varieties of deductions. Where to get it?
At the moment, you can consider a number of tax deductions. These include:
- Standard deductions. Traditionally, this type of deduction can be obtained directly from the employer by providing him with a package of documents.
- Social. These include the possibility of obtaining 13 percent of the amount paid for treatment or training.
- Property deductions. With this option, the citizen chooses exactly where to get this deduction. He may contact the tax office with a request for a notice. This document allows you to reduce the tax base of the employer. It is also possible to receive the deduction amount at the end of the tax period, as in the previous paragraph.
Varieties of standard deductions: enough for everyone
Standard deductions are regulated by Article 218 of the Tax Code. It spells out which categories of persons can use the standard personal income tax deduction, and also in what amount it is provided. The article also describes the types of documents that must be provided to the employer.
There are two main types of standard personal income tax deductions:
Each of them has a number of its own characteristics, starting with the one who has the right to use the deduction, ending with the necessary documents. Personal deductions are provided mainly to combatants who have the appropriate certificate, as well as to persons with disabilities of the first and second groups. The amount of deduction may vary from 500 to three thousand rubles.
Who can get a deduction for children
Standard deductions for personal income tax for children can receive several categories of persons:
- Having children under 18 years old.
- Those whose children study in higher or secondary educational institutions. However, only full-time education is taken into account, provided that the children are under 24 years old.
- Guardians, adoptive parents and trustees. In this case, the children must also not reach the age of majority or study at a higher educational institution or receive secondary education.
It is worth noting the fact that if the child is already eighteen years old, that is, he has reached the age of majority, then his parent has the right to a tax deduction until the end of the calendar year, without providing additional certificates or other documents. That is, if a child is eighteen years old in January, then his parent or guardian is entitled to standard PIT deductions until December inclusive.
It is also worth noting that one of the parents can refuse the deduction. Then the other has the right to use double deduction.
Deductions. Nuances
Since 2012, deduction amounts have changed. The personal that every citizen received was canceled, but the amount of standard deductions for children increased. For the current 2017, the amounts amounted to:
- 1,400 rubles for the first and second child.
- Three thousand rubles for a third child, as well as each subsequent child.
- Six thousand rubles for adoptive parents or guardians of a disabled child.
- Twelve thousand rubles to the parents of a disabled child.
If a child is brought up by a single mother or single father, as well as a widower or widow who are still not married, then the deduction amount doubles. It is worth noting that if the parents of the child are divorced, this does not mean that the parent of the child has the right to double deduction as a single parent.
Codes of standard deductions for personal income tax
Each standard deduction has its own code. It is reflected in accounting programs and is registered in certificates on the form 2-NDFL. Therefore, employees, as well as the employer, will not be amiss to know which deduction is highlighted by which digital value.
Since the end of 2016, deduction codes have been changed. This was necessary due to the fact that the amount of deductions for guardians and relatives of a disabled child began to differ. Therefore, part of the deductions, for example, for a child or an adopted child, were divided by codes.
In the case that was given above, codes 126 and 130, respectively, will be assigned. Deductions with codes 127 and 131 are applied to the second child, the dear and adopted, As for the third and subsequent child, codes 128 are applied for the native and 132 for the adopted.
As for children with disabilities, the standard tax deductions for personal income tax, the codes of which have changed, are indicated as follows:
- 129 - a deduction is provided to the parent;
- 133 - a deduction is provided to the guardian.
In the reference 2-personal income tax standard deductions are indicated by codes. Their amount can be seen at the bottom of the certificate, right below the table with the employee wages, but up to the amount of the tax base.
Documents to be provided to the employer
To receive standard tax deductions, the employee must bring documents for the employer. The package of documents may vary slightly for different categories of persons.
If the parent is not the only one, you must:
- Personal statement of the employee. It is filled in in any form or in the form of an enterprise.
- Birth certificate, copy for each child. If the older child does not use the deduction due to age, it is still recommended to provide documents for him. The fact is that the deduction amount for the third child is higher than for the first and second. Therefore, by submitting documents for the first, the employee confirms his right to receive an enhanced deduction. This action in the presence of three or more children.
- Certificate from the university if the child is 18 years old.
- Certificate in the form 2-NDFL, which must be taken from the previous place of work, if the person worked in a calendar year with another employer. If there were several employers for the current year, you need to bring in certificates from each of them.
If an employee wants to receive a deduction as a single parent, you must additionally provide:
- Help on form 25 is for single mothers.
- The death certificate of the other parent is for widows.
- A copy of the passport with the page "marital status". This is to ensure that the parent is no longer married. Otherwise, he loses the right to an increased deduction. A copy is provided at least once a year.
An employee with a child with a disability also provides a certificate. Guardians, trustees and adoptive parents supplement the package with the appropriate document from the guardianship authorities.
What to do if a standard deduction has not been received?
There are situations when the employee has not received a standard deduction from the employer. For example, did not provide any document on time. This does not mean that he loses the opportunity to regain the excessively paid amount in the form of tax.
In order to receive a deduction, he needs to contact the tax authority at his place of residence. It is necessary to provide a package of documents, which includes a certificate on the form 2-NDFL from the employer, as well as 3-NDFL. The standard deduction per child, if it really has not been received, will be refunded.
A special program helps you fill out a tax return, which can be downloaded from the official website of the tax office. Work in it does not imply the implementation of complex actions, but questions may arise.
In particular, the standard deductions in 3-personal income tax (this is what the tax return is called) are in a separate tab. Here it is necessary to indicate which deductions were provided, which were not applied for any reason. It is also worth indicating the number of children, whether there were changes in their numbers during the year. After filling and submitting, you can get standard tax deductions. 3-PIT in this case is supplemented by a certificate from the employer, passport, birth certificates of children, as well as certificates that should have been provided to the employer.
Self-assessment of taxes. Accountant Check
Each employee can independently calculate the amount of tax that he must pay to the budget. To do this, you must:
- Take the amount of your salary.
- Subtract the deduction from it.
- Multiply the resulting number by 13 percent or 0.13.
If an employee receives a salary of 20,000 rubles and at the same time has three children, then she must pay:
(20,000 - 1,400 - 1,400 - 3,000) * 13% = 1,846 rubles.
It is worth noting that if an employee has one child, then he can receive 182 rubles more each month. It is for this amount that his tax is reduced after applying the deduction per child.