Standard personal income tax deductions for children

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

Individual income tax or personal income tax for short is a percentage levied on an employee's wages in favor of the state. It would seem that the percentage of retention is fixed. However, there are a number of individuals who can receive the so-called tax deduction. It is provided both for the employee himself and for his minor children. It should be noted that both own children and adopted children are taken into account. Of course, when providing a package of documents.

What is the essence of this deduction? Employee Benefits

A tax deduction is a benefit for certain individuals. That is, an employee who has provided all the necessary documents can exercise the right to receive a standard personal income tax deduction.

The accountant enters all the data into the 1C: Payroll and Human Resources program, after which the employee pays less taxes. This is achieved due to the fact that the taxable 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 "in hand", and does not give it to the budget.

Also, in some cases, it is noted that the deduction canbe 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?

A number of tax deductions can be considered at this point. 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 receiving 13 percent of the amount paid for treatment or education.
• Property deductions. With this option, the citizen himself chooses where exactly to receive this deduction. He can apply to the tax office with a request to issue a notice. This document allows you to reduce the taxable base of the employer. It is also possible to receive the amount of the deduction 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, as well as 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:

• Private.
• For children.

Each of them has a number of its own characteristics, starting withthe one who has the right to use the deduction, ending with the necessary documents. Personal deductions are provided mainly to participants in hostilities who have the appropriate certificate, as well as to disabled people of the first and second groups. The deduction amount can range from 500 to 3,000 rubles.

Who can get a deduction for children

Standard personal income tax deductions for children can be received by several categories of persons:

• Having children under 18.
• 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 the age of 24.
• Guardians, adopters and trustees. In this case, the children must also be under the age of majority or study at a higher educational institution or receive a 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 is en titled to a tax deduction until the end of the calendar year, without providing additional certificates or other documents. That is, if a child turns eighteen in January, then his parent or guardian is en titled to standard personal income tax deductions until December inclusive.

It is also worth noting that one of the parents can refuse the deduction. Then the other is en titled to use double the deduction.

Amounts of deductions. Nuances

Since 2012, deduction amounts have changed. The personal one that every citizen received was abolished, but the amount of standard deductions for children increased. For the current 2017, the amounts were:

• 1,400 rubles for the first and second child.
• Three thousand rubles for the third child, as well as for each subsequent child.
• Six thousand rubles to adoptive parents or guardians of a disabled child.
• Twelve thousand rubles to the parents of a disabled child.

If a child is raised by a single mother or single father, as well as a widower or widow who is still not married, the amount of the deduction is doubled. It is worth noting that if the parents of the child are divorced, this does not mean that the parent of the child is en titled to a double deduction as a single parent.

Codes for standard personal income tax deductions

Each standard deduction has its own code. It is reflected in accounting programs and is registered in certificates in the form 2-NDFL. Therefore, employees, as well as the employer, will not be superfluous to know which deduction is allocated by which digital value.

From the end of 2016, deduction codes have been changed. This was necessary due to the fact that the amounts of deductions for guardians and natural parents of a disabled child began to differ. Therefore, part of the deductions, for example, for a natural child or for an adopted child, were divided by codes.

In the case above, codes 126 and 130 will be assigned respectively. For the second child, natural and adopted, deductions with codes 127 and 131 are applied. As for the third andsubsequent child, then codes 128 for natural and 132 for adopted apply.

For disabled children, the standard tax deductions for personal income tax, whose codes have changed, are indicated as follows:

• 129 - deduction given to parent;
• 133 - A guardian's deduction is provided.

In the 2-personal income tax certificate, standard deductions are indicated by codes. Their amount can be seen at the bottom of the certificate, right below the table with the amounts of the employee's wages, but before the amount of the tax base.

Documents to be provided to the employer

To receive standard tax deductions, an 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 worker. Filled in in any form or in the form of an enterprise.
• Birth certificate, a 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 amount of the deduction 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 is for three or more children.
• Certificate from the university if the child is 18 years old.
• Help on form 2-NDFL, which must be taken from the previous place of work, if a person worked incalendar year with another employer. If there were several employers for the current year, you must bring certificates from each of them.

If an employee wants to receive a deduction as a single parent, you must additionally provide:

• Certificate Form 25 - for single mothers.
• Death certificate of the other parent - for widows.
• Copy of passport with marital status page. This is to ensure that the parent has not remarried. Otherwise, he loses the right to an increased deduction. A copy is provided at least once a year.

An employee who has a child with a disability also provides a relevant certificate. Guardians, trustees and adoptive parents supplement the package with the appropriate document from the guardianship authorities.

What if the standard deduction was not received?

There are situations when an 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 recover the amount he overpaid in the form of tax.

In order to receive a deduction, he needs to apply to the tax authority at his place of residence. It is necessary to provide a package of documents, which includes a certificate in the form 2-NDFL from the employer, as well as 3-NDFL. The standard child deduction, if indeed not received, will be refunded.

Filling out a tax return is helped by a special program that can be downloaded from the officialwebsite of the tax office. Working in it does not involve 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 for some reason were not applied. It is also worth indicating the number of children, whether there were changes in their number during the year. Once completed and submitted, you can receive standard tax deductions. 3-NDFL in this case is supplemented by a certificate from the employer, a passport, birth certificates of children, as well as certificates that should have been provided to the employer.

Self-calculation of taxes. Accountant check

Each employee can independently calculate the amount of tax that he must pay to the budget. For this you need:

• Take your salary.
• Subtract the amount of the deduction from it.
• Multiply the resulting number by 13 percent or by 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 more monthly by 182 rubles. It is by this amount that his tax is reduced after the deduction for the child is applied.