Income tax refund: reasons, filling in the declaration and necessary documents

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Individual income tax (abbreviated personal income tax) refers to direct and is levied on all incomes of the population of the state.

As you know, the basic rate of income tax, as before, is thirteen percent, and according to this amount, the calculation is made with the payment of personal income tax. But there are a number of cases in which payers can return part or all of the transferred amount from wages if they have every reason to deduct.

Can citizens get income tax refunds?

This is not only possible, but should be done. Moreover, it is not difficult at all. A tax deduction is the right in some cases to transfer previously paid personal income tax. Taxpayers get back part of the funds that were spent for various purposes, and they receive an additional increase in profits. The opportunity under consideration does not require any investment, which means that there is no reason to miss it. Next, we will find out in what cases citizens cantake advantage of this privilege.

Reason for tax refund

What are the bases? There can be quite a lot of them to provide a deduction. For example, citizens bought an apartment or spent money on treatment with training. In such a situation, part of the profit will be exempt from paying taxes using benefits. Now let's find out what documents you need to collect for income tax refund.

Required documentation

In order to return the income tax already paid to the state budget, it is necessary to carry out thorough work in order to prepare all the necessary documents. To do this, you need to collect, and in addition, submit the following documentation:

• Filled out tax return in the form of 3-personal income tax.
• Paper that will confirm the expense incurred.
• Application for a property or social deduction.
• Interaction of a citizen with the tax service.

The main difficulties that payers who process income tax refund documents face are an incorrectly completed declaration, along with difficulties in confirming the expenditure made, submitting an incomplete set of papers, as well as inaccuracies in the application for deductions.

The last reason is the refusal to provide personal income tax benefits, which is associated with mortgage lending or with the presence of joint property among citizens. Often income tax refunds are notmay be due to the message of incorrect bank details where the payment should be made.

When do I need a tax return?

It is needed in a number of the following cases:

• A person needs to buy real estate. Under this definition, the tax inspection understands the following objects: an apartment (in an old housing stock or under construction), a room, and in addition, a house or a plot of land for the construction of such.
• Even if a citizen decides to sell (or has already sold) an apartment that was owned, he also has the right to issue an income tax refund on it.
• Any of the above objects must be owned (full, joint or shared) and have a certificate of registration of property or an acceptance certificate. This documentation is issued for already finished objects. And at the stage of housing construction, only an act of transfer can be issued. It is worth noting that the start year for filing a declaration is the date of its preparation.

Thus, when returning an income tax return is required. Now let's look into other details.

Refund for the apartment

First, let's try to answer the question of who will be able to take advantage of income tax refund benefits? First of all, these are:

• Working citizens, that is, those who are employed in some institution and they are paid an official salary, and most importantly, they receive income tax from it in the amount of thirteen percent,if they have previously purchased property.
• Family, when only one of the owners works, and the rest are dependents. The condition for the full (maximum possible deduction) is the acquisition of joint ownership of housing. When an apartment is purchased in shared ownership, the distribution of the amount of income tax refund is according to the shares of all owners.

Immediately, it should be noted that since 2014 it has been possible to receive refunds of property deductions for a spouse, even if the owner is only one person.

Examples

Let's take an example. Suppose an apartment was bought for two million rubles in joint ownership (wife and husband). At the same time, only the spouse pays income tax and only works. In this case, you can issue a declaration on it with a maximum tax refund of income for an apartment, which is two hundred and sixty thousand rubles.

Example No. 2. An apartment was bought for two million in a share price (wife and husband, each with half a share). At the same time, only the spouse pays income tax and only works. In this case, you can draw up a declaration for him, but the return of income when buying an apartment will be one hundred and thirty thousand rubles (according to its part). The wife may eventually get her share too, but only if she gets a job.

Example No. 3. An apartment was bought for two million and issued to her spouse, that is, the property is now her personal property. In the event that her husband has not previouslyused the right to return housing, then he will be able to return two hundred and sixty thousand rubles from the state for his wife. But subsequently, he can no longer use this benefit, even if he buys an apartment for himself.

Who else can use the refund?

Retirees (who don't work) can do this, but they were employed and paid tax for the previous three years. It is worth noting that the property deduction benefit is provided to absolutely every person only once in a lifetime. In this regard, a prerequisite for a return is the absence in the past of any appeals to the relevant inspection on this issue.

Who can't get this deduction?

First of all, these are the following categories of citizens:

• Individual entrepreneurs, along with non-working citizens, housewives, that is, those people who do not receive official wages and, accordingly, do not pay income tax.
• Pensioners who have received only a pension over the past three years, therefore, income was not withheld from it.
• Children-owners until they reach the age of working capacity, that is, again, we are talking about the possibility of paying the appropriate tax to the state. However, since 2014 this item has changed. In this regard, since then, parents can receive a refund for their children. True, for this, housing must be purchased no earlier than 2014.
• Citizens who previously received a refund of income whenbuying a home.

It is worth noting that if a person received a property deduction for an amount less than the established minimum (two million rubles), then he will be able to return the missing difference additionally.

Documents for filling out the declaration in the form of 3-personal income tax

Now let's consider what papers are needed to fill out 3-personal income tax in order to return income tax for the purchase of housing. First of all, this is the following documentation:

• Availability of a certificate in the form of 2-personal income tax (the original is required) on the income of a citizen for one year. It is issued by the accounting department of the enterprise where the citizen works.
• Contract for the sale of housing (copy required).
• Certificate of property registration in the event that ready-made housing was purchased.
• Act of acceptance and transfer of an apartment, share or room (a copy is also needed).
• Checks with payment receipts. It can be a purchase agreement, when the final amount is written in it.
• Receipts as part of the proof of additional expenses for the improvement of real estate, if they buy a property under construction.
• Mortgage agreement when there is credit.
• Certificate from a banking institution on paid interest on a mortgage loan, if you have a loan (copy needed).

The inspection is provided with photocopies of all the above documents (only a salary certificate is required in the original). But often the inspectors who accept income tax returns want to see the originals. Therefore, it would be useful to take them with you in order to showif the need ever arises. True, only copies should be left at the inspection.

Treatment tax refund

Expensive Therapy Expenses Deductible is eligible if the following requirements are met:

• Medical consumables were purchased during an expensive treatment from the list of services for which the state provides a deduction to citizens.
• The institution does not have the indicated medicines, and their purchase is provided for by the contract for therapy at the expense of the patient (or the citizen paying for the treatment).
• The taxpayer received a certificate from a medical institution stating that expensive consumables were necessary for the required treatment.

Thus, it is worth noting that the amount of income refund for treatment is not limited to any limits and is presented in full if the taxpayer spent money on paying for expensive medical services.

How can I get a treatment deduction?

To provide it, the following is required:

• Filling out a tax return (in the form of 3-NDFL) at the end of the year in which the therapy was paid for and the necessary medicines were purchased.
• Obtaining a certificate from the accounting department at the place of work on the amount of withheld and accrued taxes for the corresponding year.
• Preparation of copies of documents that confirm the degree of relationship with thethe person for whom the therapy or required drugs were paid for.
• Preparation of a set of documentation confirming the right to receive a tax social deduction for the cost of paying for treatment (including sanatorium and resort).

As part of receiving this deduction for treatment under a voluntary medical insurance contract, a copy of the policy, cash receipts, various receipts for the provision of bonuses and contributions, and so on, is required. In order to receive a refund of income for treatment, namely a deduction for the purchase of medicines, the following copies are required: the original prescription sheet with the prescription of medicines in the prescribed form with a special mark called “For tax authorities”. In addition, you will need copies of payment papers confirming payment for prescribed medical products.

Currently, tax legislation provides for many options for which you can get a tax deduction. In order to apply for a tax refund, you do not need to have a special baggage of legal knowledge, and such a procedure is not as complicated as it seems at first glance.