Income tax - what is it? How to return?

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

What is income tax? Every modern taxpayer in the Russian Federation should know the answer to this question. Next, the concept of income tax will be disclosed, as well as all its features will be described. Under certain circumstances, this payment can be returned. But how? Who is eligible?

Definition

What is income tax? They call them income tax. This is a direct tax paid on the income of an individual. In other words, income tax refers to the amount withheld by the state from profits. Under certain circumstances, citizens can return personal income tax for certain transactions.

Who pays

What is income tax? This is a kind of payment to the state for receiving income in the country. Almost all income of the population is subject to this payment. But there are exceptions.

Who is the taxpayer of personal income tax? They can be:

• individuals (adults);
• foreign nationals;
• entrepreneurs;
• legal entities/organizations.

In other words, all individuals and companies that make a profit in the Russian Federation pay income taxes.

Whatsubject to personal income tax

Now I understand what income tax is. What profit will be subject to this payment? As mentioned, not all income provides for the recovery of part of the funds to the state treasury.

Today, personal income tax is withheld from the following sources of income:

• salary;
• dividends;
• funds received from the rental of property;
• in-kind income;
• interest on deposits when refinancing rates increase;
• any income expressed in material form;
• profit from the sale of cars and real estate;
• money from the sale of any property (including securities and shares in LLC);
• Pension insurance payments;
• insurance payments.

Also, citizens must transfer personal income tax from winnings and after receiving certain prizes. How much must be paid to the state and what income is not subject to personal income tax?

Tax Exemption

Not all income is subject to income tax. When can I not pay?

In Russia, personal income tax is not paid from:

• government benefits;
• pensions;
• scholarships;
• one-time financial assistance;
• workers' compensation;
• income from the sale of farm-raised animals and livestock;
• income in the form of inheritance and gifts (from close relatives);
• prizes given to athletes;
• income up to 4,000 rubles (from gifts, winnings, and so on);
• bond winnings;
• subsidies from the state.

In other words, maternity payments are not subject to income tax, and the employee's salary provides for the recovery of part of the money.

Bid

What is income tax? This is a payment that is made by almost all citizens and organizations for the profit they receive on the territory of the Russian Federation. It should be noted that personal income tax may provide for different interest rates. It all depends on the category of the taxpayer and the chosen taxation system.

It is generally accepted that personal income tax in Russia is 13%. These funds will be withheld from the bulk of taxpayers in the Russian Federation. But there are exceptions.

For example, income tax can be withheld:

• 30% - for foreigners;
• 35% - winnings and prizes, bank deposits, insurance;
• 9% - dividend income;
• 15% - with the simplified tax system "income-expenses";
• 6% - with the simplified tax system "income".

But the bulk of the profits are taxed at 13%. Salaries, income from property, inheritance, gifts - all this includes a 13% tax rate. And nothing more.

Deductions

Another interesting nuance is that citizens who transfer personal income tax in the amount of 13% can apply for a so-called tax deduction. This is a procedure for the return of expenses incurred for certain transactions against taxes paid.

Deductions due:

• for children (standard);
• for education;
• for treatment;
• for the purchaseproperty;
• when applying for a mortgage.

Also among entrepreneurs there is a professional tax deduction. But in Russia it is issued extremely rarely.

Deduction amount

Need to return income tax on children or for the purchase of an apartment? Each taxpayer will have to understand some of the limitations in this regard. The thing is that personal income tax is returned in the amount of 13% of the expenses incurred, but with certain limits. Namely:

• 390,000 rubles - mortgage;
• 260 thousand rubles - when buying an apartment/property;
• 120,000 rubles - social deductions (for education, treatment);
• 50,000 rubles - for the study of each of the children, brothers or sisters.

You can make deductions until these limits are exhausted. After that, there is no point in applying for a refund.

Special attention requires the return of income tax on children. It is issued by the employer and provides for a reduction in the tax base when calculating personal income tax. The amount of the deduction depends on the number of children.

Namely:

• 1,400 rubles - for 1-2 minors;
• 3,000 - for 3 or more;
• 12,000 rubles - for a disabled child (up to 18 years old and up to 24 years old if he is studying at a university / graduate school / residency);
• 6,000 - for disabled children to guardians.

There is nothing difficult to understand in this. And how to issue a deduction in this or that case?

Personal income tax refund processing

It is required to return income tax on an apartment or foreducation? Then you have to follow some instructions. But first, let's deal with getting a deduction for children.

To reduce the tax base when calculating personal income tax, you will need:

• Apply to your employer for a deduction.
• Attach documents to the request: passport, TIN, birth certificates of children, certificates of disability and training (if any).

Nothing else needed. Other tax deductions, as a rule, are issued through the Federal Tax Service at the applicant's registration.

In order to receive income tax for tuition/sale of property/treatment, you will have to follow the instructions:

• Collect a certain list of papers. Their list will change depending on the situation.
• Write an application for a deduction. It must contain the details of the recipient's account.
• Submit a written request to the Federal Tax Service at the applicant's registration. Attach prepared papers to it.
• Wait for a response from the tax office (from 1 to 3 months of waiting) and transfer of funds to the specified details.

It's actually not as difficult as it seems. If you need to return income tax for tuition or any other transaction, you will need to prepare:

• passport;
• statement;
• income certificates (most often - form 2-personal income tax);
• tax return;
• document for the provision of services or studies (agreement);
• institution license;
• speci alty accreditation (for tuition deduction);
• student certificate;
• documents of ownership of property;
• birth certificate of children (if the deduction is made for children);
• checks and receipts confirming payment for services/purchase of property;
• TIN (if available).

That's it. Now it is clear what income tax is. How to return it? This, too, is no longer a secret. This information will help bring the idea to life.