In each individual document 2 PIT, the agent must fill in the cells. He must indicate income, tax deductions. The tax service specialists annually supplement the composition of personal income tax deductions. Accountants must constantly improve their skills in order to correctly fill out reports.
Ciphers
The tax deduction code is a three-digit numerical value. Deduction - the amount deducted in the presence of documented information from the calculation base. It reduces the fiscal fee on citizen income.
Sections of personal income tax deductions
Certain amounts and deductions in the income statement are indicated in section three. The deduction is displayed opposite the income of the citizen in respect of which he is applicable. For other deductions, there is section four in the certificate. Social, property, standard deductions are registered there.
Deductions for children
Standard deductions are granted from income of citizens taxed at a rate of thirteen percent. As part of these benefits, tax laws provide for child deduction codes. They are provided on the basis of applications submitted by citizens to the accounting or inspection, together with certificates confirming the right to such a deduction.
Previously, the old tax deduction codes for children were in effect. Old deductions and ciphers are shown in the table below.
| Deduction code | 114 | For the first child |
| 115 | On the second baby |
| 116 | For each subsequent after the second child |
| 117 | On a disabled child of the first or second group |
New ciphers of 2018
Conditions for granting deductions for children:
- The age of the child must not exceed the age of majority.
- For a child studying in a full-time educational institution, the age limit is twenty-four years.
- Earnings (except for dividend income) of the recipient of the deduction for the year on an accrual basis should not be more than three hundred and fifty thousand rubles. When the total income exceeds the maximum threshold, child deductions will no longer be provided.
- A deduction is granted for any child, regardless of the provision to previous children.
- If a parent or guardian is recognized as the sole parent or guardian, then the fiscal deduction is provided to him in double size. The reason for the parent's uniqueness is death or recognition (declaration of recognition) of the missing second parent.
- If a single parent marries, then a double deduction to a parent in a single person ceases to be granted.
- If the second parent submits a refusal to provide a child deduction. The double deduction may be transferred to the other of the parents (including adoptive parents) at their request.
New deduction codes per child for 2018 introduced. The new ciphers are given in more detail in the table below. Deduction code 114 is replaced by code 126.
| The code | The size | Decryption |
| Who is the recipient | Child |
| 126 | 1400 | Parent, adoptive parent | First |
| 127 | 1400 | Second |
| 128 | 3000 | Third (subsequent) |
| 129 | 12000 | Disabled child |
| 130 | 1400 | Guardian, Trustee, Foster Parent | First |
| 131 | 1400 | Second |
| 132 | 3000 | Third (subsequent) |
| 133 | 6000 | Disabled child |
| 134 | 2800 | Single-parent parent or adoptive parent | First |
| 136 | 2800 | Second |
| 138 | 6000 | Third (subsequent) |
| 140 | 24000 | Disabled child |
| 135 | 2800 | Single parent guardian, trustee or foster parent | First |
| 137 | 2800 | Second |
| 139 | 6000 | Third (subsequent) |
| 141 | 12000 | Disabled child |
| 142 | 2800 | Parent or adoptive parent. The second parent refused the deduction | First |
| 144 | 2800 | Second |
| 146 | 6000 | Third (subsequent) |
| 148 | 24000 | Disabled child |
| 143 | 2800 | Guardian, trustee or foster parent. The second parent refused the deduction | First |
| 145 | 2800 | Second |
| 147 | 6000 | Third (subsequent) |
| 149 | 12000 | Disabled child |
Property tax deductions
From 2008 to 2014, the amount of the deduction on property was in the framework of two million rubles per property. The deduction on interest paid on credit loans for the purchase of real estate was not limited.
The amount of tax deduction since 2014 is limited to two million rubles per taxpayer. You can declare a deduction from several objects until the total cost reaches the maximum threshold. The interest deduction on a mortgage loan is limited to three million rubles. These rules apply to citizens who have not received a deduction before 2014.
Every year, a citizen can return no more than thirteen percent of the annual income taxed at this rate. No tax deduction is possible on dividends.
| Code 311 | Income spent on the construction or purchase of real estate in the Russian Federation, the acquisition of land provided for the construction of housing, and the land on which the acquired property is located |
| Code 312 | Income aimed at repaying interest on loans actually spent on building or buying real estate in the Russian Federation, acquiring land provided for housing, and the land on which the acquired residential property is located, to repay interest on loans received from credit institutions for refinancing for the construction or purchase of objects in the Russian Federation |
Tax deduction is an opportunity to receive:
- in the year of signing the acceptance act of transfer and further, if the citizen has concluded a contract for shared participation in construction, a contract for the assignment of rights to a document of participation in construction, a contract for a housing construction cooperative;
- in the year of making entries in the register of real estate and rights to it and further.
The right to property deduction does not end. A person may receive it subject to the restrictions in force at the time of obtaining the right. A deduction can be made from the year the right to it arises. Pensioners can receive a deduction from the income of the past four years.
Social deductions
The social tax deduction is given to the citizen who spent his own earned money on expenses related to treatment, or the purchase of medicines:
- own treatment, husband (wife), first-line relatives, children (until they reach adulthood);
- medicines prescribed to a citizen, his wife (husband), parents, children under the age of eighteen years during treatment and purchased at the expense of personal funds;
- insurance contributions to organizations under personal health insurance contracts of a taxpayer, wife (husband), parents, children (up to their full age).
Codes of standard deductions to the taxpayer are given in the table below.
| Code 320 | Studying at higher educational institutions, his brother (sister) under the age of twenty-four years full-time |
| Code 321 | Education of guardianship children under the age of twenty-four |
| Code 324 | Medical services for themselves, parents, spouse, children (including adopted) under the age of eighteen years, wards under the age of eighteen years |
| Code 325 | Insurance contributions paid under insurance contracts on a voluntary basis to yourself, first-line relatives, children (including adopted children, wards) under the age of eighteen years, concluded with insurance companies operating on the basis of a license providing for such insurance companies to pay exclusively for services in actual expenses |
| Code 326 | Costs of expensive medical treatment |
According to Russian law, the maximum allowable amount of cash costs for treatment and the purchase of drugs, together with other social expenses, should be one hundred twenty thousand rubles.
The size of the deduction is not limited to any monetary limits and is provided in the amount of all costs if an individual spent his own money to pay for expensive services. A citizen can determine what treatment (medication) is expensive according to a certificate of payment for services to be provided to the inspection:
- code 1 - not an expensive treatment;
- code 2 - expensive treatment procedures.
A deduction for the cost of acquiring expensive drugs is provided to the citizen-taxpayer if:
- supplies were purchased during an expensive treatment;
- the clinic (hospital) confirms that it does not have the indicated expensive medicines, their purchase is provided for by the contract;
- a certificate was provided from a medical institution (clinic, hospital) indicating that expensive medications were needed to treat a sick person;
- a taxpayer citizen received a certificate with code 2.
To apply for a social deduction for treatment, the purchase of medicines for an individual must:
- Take the free-form application to the tax agent (to the accounting department of the employer).
- Enter your personal data in the form 3 of personal income tax at the end of the calendar year and take it to the inspection. Get a certificate from your employer at the place of your employment about the amounts of accrued tax fees for the calendar year in the form of an individual certificate. Prepare copies of the required documents on the degree of kinship between the taxpayer and the relative being treated, about the costs of treatment, purchase of medicines.
Professional Deductions
Professional deductions are granted in respect of the following labor income of a person:
- income of individual entrepreneurs (private business owners);
- income of notaries, lawyers engaged in private practice and established law offices;
- income received under GPC agreements;
- royalties for the creation of utility models, inventions or fees for the creation, execution or other use of works of science, literature and art.
| The code | 403 | Costs associated with the performance of work under GPC agreements |
| 404 | Costs associated with obtaining royalties, special payments (bonuses) to the authors of discoveries, inventions, utility models |
| 405 | Amount within the limits of standards for expenses related to the receipt of royalties (as a percentage (share) of paid earnings) |
To receive a professional deduction, a taxpayer requires:
- Send a free application to the employer.
- Fill out the declaration of Form 3 NDFL to the tax inspectorate at the place of residence (registration) with the application of documents confirming the actually spent funds, for which it is required to receive a fiscal deduction.
If the fiscal fee was not withheld from the earned income and was not paid by the employer, then the taxpayer must submit a tax return by April 30, taking into account the professional deduction. The calculated amount of the mandatory fiscal contribution must be paid no later than July 15th.
Help
Material assistance in monetary terms up to four thousand rubles paid to an employee is shown with the following codes: income - 2760, and a deduction code 503. If the employer has paid tax-free assistance to an individual who is not his employee, he does not submit a certificate to this person in tax office.
A lump-sum payment to an individual in connection with the birth of his child is reflected with an income code 2762 and a deduction code 504. Assistance in connection with the appearance of a new family member is provided on the following conditions:
- She is not taxed on income within fifty thousand rubles for the birth of one child.
- It must be paid to the taxpayer parent within one year of the birth of the child.
| Code 503 | Assistance provided to employees (including former employees) who terminated their employment contract due to retirement |
| Code 506 | Assistance to people with disabilities and their public organizations |
| Code 508 | Assistance provided at the birth (adoption) of children |
Help without deduction codes
Material assistance not subject to income tax, regardless of size, is not reflected in the certificates. Sometimes there is a one-time payment in connection with the collapse of the house due to an earthquake or landslide, a forest fire, as a result of which the cottage burned down. There is no need to reflect such assistance in the personal certificate of 2 personal income tax employees. Emergency and natural disaster relief is not subject to income tax.
2018 changes
Each year, an individual certificate is updated. There are changes to deduction codes in 2018. They are listed below.
| Deduction code | Appointment |
| 619 | Positive financial result obtained from operations of an individual on a citizen’s personal investment account |
| 620 | Other amounts |
A personal investment account is an account intended for the separate registration of monetary funds and securities of a citizen, his obligations under contracts concluded at his expense. An investment account is opened and maintained by a trustee or broker. The deduction for operations on an individual investment account is provided by decision of a citizen in the amount of:
- funds deposited in a personal investment account;
- a positive financial result obtained from operations with securities recorded on a personal account.
If a tax resident of Russia invests in securities, then in order to reduce the amount of income tax paid to the budget, he can receive an investment deduction.