Standard tax deduction: sizes, terms of provision

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

When determining the tax base, the income of an individual, taxed at a rate of thirteen percent, is reduced by the amount of standard tax deductions. For income taxed at other tax rates, these deductions do not apply.

Charge calculation period

The tax period for a standard tax deduction is a month. The tax base for the income tax of a citizen may decrease monthly by the amount of this deduction.

Recipient of the deduction

Individuals whose income is subject to income tax at the rate of thirteen percent may receive a deduction for this tax. If there is no official income, then the deduction is not provided.

The right has a declarative character. To apply for a tax deduction, you must submit an application for a standard tax deduction. It is not mandatory to require an employee to apply on an annual basis. Standard deductions can be made year after year on a single application.

Types of deductions

The Tax Code of Russia provides for standard tax deductions of the following types:

• on the taxpayer himself (citizens who meet certain conditions);
• on the children of the taxpayer.

Standard deductions are provided to a citizen after a personal statement about the desire to receive a fiscal benefit to a tax agent (employer) or to the inspection and presentation of supporting documents. There is no legal template for applying for a standard tax deduction.

Employee deduction

Standard tax deductions for personal income tax per taxpayer have a number of features:

• The right to a standard deduction for an employee has no restrictions on either the amount of money or the maximum amount of income received by a taxpaying citizen.
• If an individual works for several employers at once, then he can apply for a deduction only at one place of professional activity. The employer is not required to check if the taxpayer is working somewhere else. In order to avoid misunderstandings, the citizen must include in his application a clause confirming that the applicant is notified that the deduction can only be provided by one employer, and undertakes to immediately inform the employer's accounting department in case of filing a deduction request with another agent.
• The deduction can be accepted not only by the employer with whom the employee works under an employment contract, but also by another taxagent (individual entrepreneur, notary, lawyer who has established a lawyer's office, a separate subdivision of a foreign enterprise in Russia).
• For income from the sale of property, agents do not provide standard tax deductions.
• If an employee has periods of non-receipt of labor income, then the right, according to the law, for a tax deduction is not canceled, but the deduction itself is accumulated. Standard tax deductions cannot be used for years and cannot be summarized. Accumulation is only for the calendar year. If at the end of the year, due to the transfer of fiscal benefits, an employee has an overpaid amount of income tax, then you can return it yourself by contacting the tax office.
• If a citizen has the right to claim two deductions (in the amount of five hundred rubles and in the amount of three thousand), then a deduction with a maximum amount (three thousand rubles) is provided.
• If a citizen claims the right to a deduction as a taxpayer belonging to a certain category, and to a deduction for his child (children), then he is granted both deductions (for the taxpayer and for the child).

Documents provided to the employer to prove the legal right to the standard deduction for the employee:

• Employee claim for standard income tax deduction.
• Documentary confirmation of the legal right to a deduction (medical certificate, social examination document, certificate of the Hero of Russia or the USSR, certificate of a combatant or war veteran).

Ifthe taxpayer decided to apply to the IFTS at the place of registration with a declaration of the form 3-NDFL, then he must attach to it a certificate of income for the year in the form 2-NDFL, documents confirming the deduction and a written application addressed to the head of the tax inspectorate according to the model.

Standard tax deduction of three thousand rubles

The following categories of taxpayers are en titled to a fiscal deduction in the amount of three thousand rubles for each month of the tax period:

• Participants, liquidators of the consequences of the explosion at the Chernobyl nuclear power plant, the industrial facility "MAYAK", including those with radiation sickness and other specific diseases.
• Military and civilian personnel involved in construction at the Shelter.
• Testers of nuclear weapons (including underground, underwater), military radioactive substances.
• Participants in the assembly of nuclear charges.
• Disabled WWII.
• Disabled people of groups I and II from among military personnel.
• Disabled people, equated to military personnel.

Deduction of five hundred rubles

Tax deduction in the amount of five hundred rubles for each month of the tax period is provided to the following groups of citizens:

• Heroes of the USSR and Russia.
• Persons designated with the Order of Glory of three degrees.
• Participants of the Second World War.
• Disabled people of the first and second groups and disabled since childhood.
• Persons who were residents of besieged Leningrad during the Second World Warwho were in the city from September 8, 1941 to January 27, 1944.
• Prisoners of concentration camps during the Second World War.
• People who donated their bone marrow to save the lives of others.
• Persons who fell ill and had radiation sickness as a result of the accident at the Chernobyl nuclear power plant, PA "MAYAK".
• People evacuated from the affected areas after the accident at the Chernobyl nuclear power plant, the MAYAK production facility.
• Participants who performed international duty with the decisions of state authorities in the Republic of Afghanistan.
• Persons who took part in the hostilities on the decisions of the authorities on the territory of Russia.
• Parents of servicemen who died defending the country.
• Spouses of dead servicemen until they re-enter into a registered marriage.

Standard Child Tax Credit

Fiscal deduction is provided to parents, including adoptive parents and guardians. From the amount of the monthly salary, the amount of money that is not subject to fiscal duty is deducted, and the remaining amount of income is multiplied by thirteen percent of the tax. The deduction for children is provided to a taxpaying citizen until the month in which his total income on an accrual basis reaches the amount of three hundred and fifty thousand rubles.

Child	Parent, adopter	Guardian, trustee, adoptive parent	Single parent or adoptive parent	Guardian, custodian orAdoptive Single Parent	A parent or adoptive parent. The other parent refused the deduction	Guardian, custodian or adoptive parent. The other parent refused the deduction
First	1400	1400	2800	2800	2800	2800
Second	1400	1400	2800	2800	2800	2800
Third and following	3000	3000	6000	6000	6000	6000
Disabled child	12000	6000	24000	12000	24000	12000

2018 standard tax deduction conditions:

• Child must be under the age of eighteen.
• For a full-time student in higher education, the maximum age is twenty-four.
• The salary of the citizen-recipient of the deduction for the calendar year on an accrual basis should not exceed three hundred and fifty thousand rubles.
• The deduction for any child is granted regardless of whether the deduction was presented to previous children.
• If the spouses have a common child and children from previous marriages, the common child is considered the third.
• The right to a double deduction is for unmarried parents in a single person. The parent is recognized as the only one if the other parent is declared dead or missing (or fileddeclaration of recognition) or a dash in the father's box on the birth certificate.
• At the same time, for persons who have children outside the country, a tax deduction is provided based on documents notarized by the competent authorities of the state in which the children live.

Features of calculating the deduction for children

Standard deductions for children with disabilities are cumulative. For example, the first child in the family is disabled, the fiscal benefit will be thirteen thousand four hundred rubles (one thousand four hundred plus twelve thousand).

The refusal of the first parent from the deduction in favor of the other occurs on the following conditions:

• child supported by parent;
• parent has official taxable income;
• cumulative income does not exceed three hundred and fifty thousand rubles;
• one parent submits application to their agent to waive the standard deduction and the other parent submits application to their agent to double the deduction;
• disclaimer does not require certification by the employer;
• certificate in the form of 2-personal income tax of the parent who refused the deduction is submitted to the employer providing the double deduction every month until the moment when the income exceeds three hundred and fifty thousand rubles.

Giving deductions to guardians and trustees

Features of obtaining a tax deduction:

• Guardians, trustees cannot transfer their deduction rights to other people.
• A guardian (custodian) in a single person hasthe right to double the deduction.
• When entering into a marriage, the sole guardian (custodian) does not lose the right to double the deduction.
• The spouse of the guardian(s) is not en titled to a tax deduction in relation to the ward child(ren).
• The deprivation or existence of parental rights of the relatives of the mother and father of the children does not affect the amount of the deduction of the guardian (custodian) in a single person.
• Guardians (trustees) have the right to deduct until the wards reach the age of eighteen.
• No supporting documents are required to apply for a double deduction.

Where can I get the deduction?

There are two ways to get a deduction for children:

• Apply to the employer's accounting department with an application and attachment of the required documents (children's birth certificate, certificates from educational institutions on full-time education of children).
• Apply to the tax office with a completed declaration form 3-personal income tax.

Do I need a deduction?

The process of obtaining a standard deduction at work is very fast and easy for a person. Given the modest size of the payment, many citizens do not use their right to a fiscal deduction. Whether or not to claim your right is up to you.