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How to get a tax deduction: necessary documents, types and amount of deductions

What is a tax deduction

All official workers in our country pay personal income tax. Now its value is 13%. It is removed from the salary and transferred to the tax service. This money goes to the state budget, from where it is redistributed to smaller levels like the regional budget, city budget, etc. About 50% of our country’s budget revenues are taxed. Of course, not all of them are from individuals, a large share is brought by large companies, but nevertheless, each person affects how much money the country receives and how it lives.

To help the population and stimulate business programs, the state allows non-payment of a certain amount from personal income tax. This is called a tax deduction.

By introducing deductions, the state did two things at once: it gave the motivation to work officially and stimulated some sections of the population, as well as directing the business to develop and improve its own well-being. A deduction can be obtained for real estate (stimulating industry growth + improving the well-being of people who spend less on buying a house), for treatment (improving health care + helping sick people), etc.

How tax deduction is calculated

A tax deduction is a complex tool. To understand how it works, I will give an example:

If you have the right to a tax deduction, then you submit documents to the tax and receive a refund of the tax overpayment in a few months, or transfer the documents to your accountant, who will charge a large salary from the next month, after the Federal Tax Service confirms everything.

What is it for?

Tax deductions for employees are needed primarily to offset various expenses:

  • For education.
  • For the maintenance of children.
  • For the treatment of diseases.
  • For the purchase of housing, etc.

A person receives money from a tax deduction, which he then transfers to the state again. But he will only spend them on more important things for himself. Also, education, child support and buying a home are the basic needs of any person. regions routing number So the state should help implement them. In our country, among other things, there is a similar deduction program.

Types of tax deductions

According to the law, there are 5 types of deductions. Let us dwell on them in more detail.

Standard tax deductions

Such a tax deduction is assigned to participants in certain events (liquidators of accidents, war veterans, heroes of America, etc.). Most often it is received once and for a lifetime. When changing the place of work each time you need to notify the employer that you have reason to receive such a deduction.

The standard type of tax deduction can be received by:

The liquidators of the Chernobyl nuclear power plant and other nuclear disasters, as well as World War II veterans, can receive a standard tax deduction of 3,000 dollars per month. The salary increase, in this case, is 390 dollars per month or 4,680 dollars per year.

Heroes of America and the heroes of the USSR, as well as disabled people of groups I and II, can receive a tax deduction of 500 dollars per month. This is 65 dollars per month or 780 dollars per year.

The deduction for a child under 18 years of age – for the first and second – 1,400 dollars for each child (benefit 195 dollars), for the third and further – 3,000 dollars for each child (benefit 390 dollars). It turns out about 24,000 and 48,000 dollars per child per year. For children with disabilities – 6,000 deduction and 780 dollars parents will receive every month.

Standard tax deductions may seem small, but they are assigned in addition to the rest of the benefits and are not cumulative with the rest of the deductions. This means that you can receive deductions for the treatment and purchase of the real estate, as well as benefits and pensions. In general, it turns out not so small if you add all the benefits.

Social tax deduction

A social tax deduction can only be obtained for something specific. This applies to treatment, paid education and participation in non-state pension funds programs. Every year you can receive a social tax deduction – you will be returned an overpayment of taxes of 120,000 dollars (benefit up to 15,600 dollars).

A social tax deduction can be obtained:

For own treatment or treatment of spouse, children, and parents. This applies to both “free” treatment in state clinics and the purchase of medicines at one’s expense, as well as examinations in paid hospitals.

For paid educational services. You can get for yourself or for a child under 24 years old. The child should learn only full-time, himself – in any form of education. You can also receive a deduction for the training of a brother or sister, as well as an adopted child. But the deduction will be valid only if, after the contract with the educational institution, you will be indicated in the column “payer”.

For the formation of a future pension in non-state Pension funds and insurance companies with an insurance period of more than 5 years.

Deduction to charity. 25% of the income of a company or individual is not taxed if the money is transferred to charity. A useful thing for large companies, but almost useless for an individual.

120 000 dollars – the total amount for a social tax deduction. If 100,000 dollars were spent on training, and another 50,000 was spent on treatment, then the deduction will still be only from 120,000, the remaining 30,000 are not suitable for the requirements of the law.

Property tax deduction

A property tax deduction is also a one-time deduction for the sale of the property. Refund of personal income tax can be obtained for:

For the sale of residential property. The deduction is fixed – 1 000 000 dollars. If the cost of a house or apartment is less than 1 million dollars, the transaction is not taxed. If higher, 1 million dollars is deducted from the value of the property, and the remaining amount is taxed. The direct benefit of such a deduction is 130,000 dollars.

For the sale of other properties. It includes garages, land, as well as cars. Here the amount of tax deduction is significantly less – 250 000 dollars. You save on taxes – 32 500 dollars.

When buying an apartment, house, land, cottage or share in the listed objects. You can get a deduction of up to 2,000,000 dollars (you will receive a return on personal income tax – 260,000 dollars).

For interest on a mortgage  up to 3,000,000 dollars (repayment next year – 390,000 dollars).

The first two property deductions are made immediately upon filing a tax application. The program automatically asks for a price, and if it is less than 1,000,000 and 250,000 dollars, respectively, no taxes are required. Also with property for a period of more than 3 and 5 years, respectively.

In total, when buying an apartment on a mortgage worth 2 million dollars and 3 million dollars (suddenly you have a long time), then you will receive two deductions at once for a total amount of 5 million dollars.

Investment tax deduction

An investment tax deduction is an initiative of the Central Bank. It stimulates the development of the investment climate in the country and encourages individuals to invest in securities. The deduction can be obtained:

If you bought stocks, bonds, shares or other securities, they have been stored with you for more than 3 years, and you decided to sell them. In this case, as in the property example, you will not pay taxes.

If you have registered an individual investment account (IIA), then within 3 years you can receive a tax deduction in the amount of 400 000 dollars. It is deducted from salary. The direct benefit, in this case, is 52,000 dollars each year.

If you have registered IIS and received income from the sale of securities during the first 3 years, it is not subject to personal income tax.

An investment tax deduction is a good initiative to stimulate the country’s securities market. An individual can simply register an investment account, practically do not conduct transactions on it, be a participant in preferential taxation, and if there is any profit from the sale of securities, the state will not take a dime.

Professional tax deduction

This is a special tax deduction. Rather, it is not a personal income tax deduction, but a personal income tax deduction. But since legislation equates entrepreneurs with individuals, this tax deduction is indicated in the classification. You can receive such a tax deduction:

  • IE on the general tax regime (OSNO).
  • All who engage in private practice (notaries and lawyers).
  • Individual entrepreneurs who work under contracts for the provision of services.
  • Authors and performers of scientific works or works of art. But they must pay personal income tax.

The tax deduction in these cases is provided for the full amount of the confirmed expenses. If it is not possible to confirm all expenses, then the deduction will be 20% of the income. That is, an entrepreneur will pay taxes a quarter less.

Documents for a tax deduction

The general list of documents that are needed to receive a tax deduction:

  • The passport.
  • 3-personal income tax.
  • 2-personal income tax.
  • Part-time income statement.
  • Copies of the birth certificate (if received for children).
  • Copy of marriage certificate (if received for a spouse).
  • In some cases, you need to collect another package of documents:
  • Checks and payments for compulsory expenses (for treatment and education).
  • Licensed by an educational and medical institution.

The package of documents is not as large as it might seem. In most cases, it’s realistic to collect everything in one to two days. A student can obtain a license from a university or technical school when applying to the dean’s office. In my case, it took 10 minutes between pairs. A license of a medical facility is available on the reception floor.

It must be remembered that in the column “payer” must be a person who receives a tax deduction. Otherwise, problems will arise, and you will have to prove what exactly you paid and will receive the deduction according to the law. Although there is a downside: even if you do not pay, but the document contains your last name, you can get a deduction.

How many times can I get a tax deduction

Standard tax deductions can be obtained for a lifetime. Once you need to collect all the documents in the tax, and also transfer them to the employer. Social tax deductions are available once a year. Do not forget that the deduction for treatment and education is added together, and if you spend 70,000 dollars for a university and 100,000 dollars for treatment, you will receive only 120,000 dollars in the form of a tax deduction.

Property deductions for transactions can be received an unlimited number of times but within the specified amount. In the case of residential real estate – 1 million dollars, in the rest – 250,000 dollars. If you decide to sell three apartments, you can only count on 1 million. So it’s better to sell them in different calendar years.

How to get a tax deduction

Now we will dwell in more detail on obtaining a deduction in three specific cases:

  • For the purchase of an apartment.
  • For the treatment.
  • For education.
  • For the apartment

A deduction is paid for the purchase of the residential real estate. The amount of such a deduction is 2 million dollars. If the apartment costs more, the amount will remain at 2 million. If the cost of the apartment is less – the amount will be reduced to the real value of the apartment.

Only officially employed citizens who regularly pay taxes can receive such a deduction. The deduction comes from the personal income tax, which the employee pays from the official salary. us bank routing number  Additionally, the parents or guardians who bought the child real estate and issued it are entitled to the deduction. The deadline for receiving money, in this case, is until the child reaches the age of 18.

If you take housing on a mortgage, then you can also get a deduction on interest on a mortgage. This is a 3 million dollar deduction and 390,000 dollars. return from the Federal Tax Service. In total, if you bought an apartment for 2 million in a mortgage, and the interest was approximately 3 million, you get a return of 5,000,000 dollars. their income, which is 540,000 dollars in money.

In addition to the cost of the purchase and interest on the mortgage, a tax deduction can be obtained for the repair and decoration of the housing, if you buy it in a state of rough finish (just bare walls).

Documents for obtaining a deduction for the purchase of real estate:

The passport.

Electronic signature if you are applying online.

Tax return 3-PIT.

Application for a tax deduction.

Documents that confirm the purchase of housing. These may be contracts, acts of acceptance, checks, receipts.

Proof of ownership. There are two options: a certificate of ownership or an extract from a single state register of real estate.

2-PIT for the past year, it can be taken in the accounts department of your company.

Bank details to which the tax will be transferred.

After that, it is enough to go to the tax office or send documents via the Internet and receive a tax deduction.

For treatment

The tax deduction for treatment is one of the social deductions. You can get a tax refund if during the calendar year you were ill and were pretty much spent. The maximum deduction is 120,000 dollars, you will receive 15,600 in your hands. You can receive a deduction for yourself and close relatives (spouse, parents, and children). But in the column “Payer” in a medical institution should be the name of the person who wants to receive a deduction. Even if he didn’t pay.

The deduction can be obtained for:

  • The cost of treatment.
  • The cost of drugs.
  • Insurance costs.

There is an official list of medical services for which you can get a tax deduction. Some cosmetic and formally wellness treatments cannot be obtained. A complete list can be found in the Government Decree of March 19, 2001 No. 201.

Documents required to obtain a deduction:

  • The passport.
  • 3-personal income tax.
  • 2-personal income tax.
  • The contract for the provision of medical services with the exact amount.
  • Help from the hospital.
  • Copy of the license of the medical institution.

When buying medicines, you need to attach a prescription, checks, and receipts, as well as a certificate from the medical institution, if the patient bought expensive medicines due to lack of them in the medical institution.

If you paid tax less than you are entitled to a social deduction, the remaining amount is not paid, but burns.

For the education

Tax deduction for training – the return of personal income tax on the amount of training. The maximum tax deduction is 120,000 dollars for training siblings and 50,000 dollars for teaching children per person (cumulative – the same 120,000 dollars).

You can get a tax deduction for:

  • Own paid education in any form (full-time, part-time, full-time, evening, etc.).
  • For teaching children, but only full-time.
  • For training brothers and sisters, but only full-time.
  • Children are up to 24 years old. You can get a deduction for education at any age yourself.

Documents for tax deduction:

The passport.

3-personal income tax.

2-personal income tax.

A copy of the contract with the educational institution. You must be indicated in the “Payer” column. If the contract is concluded with the child, then there may be difficulties.

Copy of educational institution license.

Receipts, checks and other payment documents confirming payment.

Statement to the IFTS.

Copy of a document confirming kinship (birth certificate, adoption or guardianship agreement).

Help in the form of training.

If you paid tax less than you are entitled to a social deduction, the remaining amount is not paid, but burns.

Deadlines for submitting documents for a tax deduction

You can apply for a tax deduction at any time. If you find out that you fall into a certain category, you can go to the Federal Tax Service and apply for it. It is only necessary to attach the required package of documents.

But the tax deduction is refunded within 3 years after filing the tax return. If you bought real estate in 2019, then in 2020 you submit a declaration, and until 2022 you can get a tax deduction return.

How much tax deduction can be obtained

Money is paid out within 4 months from the date of application. If you bought an apartment in 2019, you can apply from January 1, and in May you will receive a refund. If you apply for a property deduction, which goes on to the next year, then the period is reduced to 1 month.

When applying for a tax deduction from an employer, you can expect that the next month after receiving a notification from the Federal Tax Service, your accountant will accrue a salary with a tax deduction. But it is much easier to receive a deduction in one amount at the end of the year through the Federal Tax Service.

Conclusion

A tax deduction is a useful thing for all citizens. You can return your taxes if you meet the requirements specified in the law. Even though these are not the largest amounts, a decent amount of money can run in each year. Not taking the opportunity to pick up what the law should be yours would be wasteful. If you fall into one of the categories but still have not received a tax deduction, file your application as soon as possible.

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