6-NDFL: how to reflect the refund of over-withheld tax

Personal income tax is a special tax - it is transferred to the budget from the amount of income of an individual. This means that the employer must transfer to the budget exactly as much personal income tax as he withheld from the employee’s income. An organization acting as a tax agent does not have the right to pay tax at its own expense. What should you do if you calculated your tax incorrectly and withheld more? Or they made a mistake in the payment and instead of 1000 rubles, they transferred 10 thousand, can they be returned or offset?

A direct prohibition on paying personal income tax at the expense of an agent is specified in clause 9 of Art. 226 of the Tax Code of the Russian Federation: “Payment of tax at the expense of tax agents is not allowed, except for cases of additional assessment (collection) of tax based on the results of a tax audit in accordance with this Code in the event of unlawful non-withholding (incomplete withholding) of tax by a tax agent.”

In other words, personal income tax is not a tax that can be paid in advance for a year in advance. It is transferred to the budget every time income is paid to an individual. Why does overpayment still occur?

Reflection of tax refund in Form 6 of personal income tax: how to do it correctly?

All organizations and individual entrepreneurs concluding employment contracts with individuals must submit an additional report on the income of their employees. It also contains information about the taxes that are withheld from them. Form 6 personal income tax must be submitted quarterly.

Cases when taxes need to be refunded

Personal income tax of 13% is withheld from all income of employees who are tax residents of Russia. The responsibility for withholding and transferring funds to the budget rests with the employer. But sometimes a larger amount is actually transferred to the budget than it should be. There may be several reasons for this:

• technical error in calculation;
• unaccounted benefits for property deductions;
• income has been recalculated, for example, vacation pay;
• the employee's status changed from non-resident to resident.

The employer must notify the employee of the amount excessively withheld from him within 10 days from the moment the error was discovered (paragraph 2, clause 1, article 231 of the Tax Code of the Russian Federation). In order for the tax amount to be returned to him, the employee must write a statement (paragraph 1, clause 1, article 231 of the Tax Code of the Russian Federation).

On a note! The legislation established a three-year period for this. The report begins from the day the overpayment is transferred.

How does a refund work?

After a person has submitted an application, the employer has 3 months to return the funds. The money is returned from the calculated personal income tax, which is withheld from employees, for the established 3 months.

If the accrued amount of personal income tax for a specified period is insufficient, reimbursement occurs through the Federal Tax Service. Within 10 days from the date of receipt of the corresponding request from the employee, the tax agent sends to the Federal Tax Service an application for the return of erroneously transferred amounts (paragraph 6, paragraph 1 of Article 231 of the Tax Code of the Russian Federation). Documents confirming the presence of errors in the transfers are attached to the application.

An employer may pay an employee an erroneously withheld amount from his own funds, and then receive it from the tax office.

When liquidating an enterprise, the citizen himself applies for an overpayment to the tax office, with an application and declaration 3-NDFL (paragraph 10, paragraph 1 of Article 231 of the Tax Code of the Russian Federation).

Reference! Withheld income tax at a rate of 30% for a resident of the Russian Federation is returned by the employee independently through the Federal Tax Service.

Form 6 personal income tax, return reflection

If such a situation arises, the accountant is faced with the question of how to correctly reflect the personal income tax return in 6 personal income taxes? You need to be guided by Section III of Appendix No. 2 to the Order of the Federal Tax Service dated October 14, 2015 N ММВ-7-11/ [email protected] In the event of a refund of overly withheld tax, its amount will be reflected several times, on the following lines:

1. 070 – show personal income tax, including overpayment, withheld from the beginning of the year;
2. 090 – the refund of previously incorrectly calculated tax to the employee is reflected;
3. 140 – shows the amount of budget contributions accrued for the reporting quarter, which must be withheld from income.

The difference between lines 070 and 090 should correspond to the actual tax transferred. Both lines are filled in with a cumulative total from the beginning of the year.

Reflection of overpayment if the amount is returned in another period

When returned, personal income tax is reflected in line 090 in the reporting (tax) period in which it was transferred to the employee. The employer has 3 months to do this, so sometimes the periods in which the overpayment was made and returned do not coincide. How to reflect the personal income tax return in 6 personal income tax in this case?

Let's look at an example. From Petrova V.N. in June of this year, a tax was withheld in the amount of 3850 rubles, instead of 3550. The overpayment amounted to 500 rubles. The error was noticed only the next month, when a new reporting period began.

The employee was transferred the money in August. The employee's income for the 3rd quarter amounted to 95,800 rubles, withheld tax - 12,454 rubles. In fact, 11,954 rubles were transferred to the budget. (12,454 – 500).

An example of filling out a form for 9 months by line:

• 130 – 95 800;
• 140 – 12 454;
• 090 – 500;
• 070 – actual contributions to the budget that the tax agent has made since the beginning of the year, taking into account recalculation.

There is no need to submit an adjustment to the report for the previous period, but it is necessary to submit certificate 2 of personal income tax for the relevant employee.

Timely and correct reflection of the tax refund in the report will avoid suspicion on the part of the government body of incomplete payment of contributions to the budget by the enterprise.

Source: https://ndflexpert.ru/6/kak-otrazit-vozvrat-naloga-v-6-ndfl.html

We withheld more income tax than we should have – what should we do?

The procedure for returning personal income tax is regulated by Art. 231 Tax Code of the Russian Federation. The accounting department notifies the employee within 10 days of the detected error. Based on the application, the excess tax withheld is returned to his bank account. The amount must be transferred within 3 months. If the recalculation is associated with a change of status (when a non-resident became a resident), settlements with the individual will be handled by the tax office, to which the application and 3-NDFL declaration are submitted.

Since tax information falls into Form 6-NDFL, it is necessary to reflect the transactions performed in it.

Excessively withheld personal income tax in 6-personal income tax

Sometimes the employer's accounting department withholds more personal income tax from an employee's income than is necessary. The error correction affects tax reporting. Let's consider how to reflect excessively withheld personal income tax in 6-NDFL, so as not to violate the order of filling out the form.

We withheld more income tax than we should have – what should we do?

The procedure for returning personal income tax is regulated by Art. 231 Tax Code of the Russian Federation. The accounting department notifies the employee within 10 days of the detected error. Based on the application, the excess tax withheld is returned to his bank account.

The amount must be transferred within 3 months.

If the recalculation is associated with a change of status (when a non-resident became a resident), settlements with the individual will be handled by the tax office, to which the application and 3-NDFL declaration are submitted.

Since tax information falls into Form 6-NDFL, it is necessary to reflect the transactions performed in it.

How to show excessively withheld personal income tax in 6-personal income tax

The accrual and withholding of income tax is reflected both in section 1 of the Calculation (incremental from the beginning of the year) and in section 2 of the form (for the last 3 months).

In case of excessive withholding of personal income tax, 2 options are possible:

• incorrect accrual and error correction occurred in the same reporting period;
• the excess amount was accrued and withheld in one period, and the error was discovered later, in another reporting period.

Line 040 is subject to clarification if the amount of calculated tax was overestimated. The difference returned to the individual is reflected on line 090. If the periods of deduction and return are different, then period 090 is filled in in the period of return of the excess withheld amount.

Example

The employee’s salary is 20,000 rubles per month (60,000 rubles were accrued for the 1st quarter), the standard deduction for a child should have been 1,400 rubles. per month (RUB 4,200 for the entire quarter). The accounting department erroneously did not provide the employee with a standard child deduction for January.

The amount of tax withheld in excess amounted to 182 rubles. Personal income tax was withheld for January in the amount of 2,600 rubles, for February and March 2,418 rubles each, a total of 7,436 rubles was withheld for the quarter. After the error was discovered and recalculated, the tax amount for the quarter amounted to RUB 7,254.

In order not to complicate the calculations, we believe that this employee was not paid a salary in the second quarter.

Filling out 6-NDFL for the 1st quarter, if the error and its detection occurred in the same period:

line 020 – 60,000.00;

line 030 – 4200.00;

line 040 – 7254;

line 070 – 7436.

Line 070 reflects the actually withheld “inflated” amount of tax.

Filling out 6-NDFL if an erroneous accrual and correction of the error occurred in different periods

If the Calculation for the 1st quarter was submitted before the error was discovered, the amount of calculated tax in line 040 was overestimated, and the deductions in line 030 were not fully reflected, so for the 1st quarter you need to submit an updated Calculation with the correct data on these lines:

line 020 – 60,000.00;

line 030 – 4200.00;

line 040 – 7254;

line 070 – 7436.

No corrections are made to Section 2 of the Calculation.

Let’s say that in the 2nd quarter the employee was refunded the over-withheld tax, then in the 6-NDFL for the six months it needs to be reflected on line 090:

line 020 – 60,000.00

line 030 – 4200.00

line 040 – 7254;

line 070 – 7436;

line 090 – 182.

Return reflection

Income tax refunds are shown in the reporting period when the excess withheld funds were actually transferred to the employee. The amount is shown on line 090 of the Calculation. In practice, three situations are possible in 6-NDFL:

1. the amount of tax withheld is greater than calculated by the tax agent;
2. the amount of excessively withheld personal income tax is less than calculated;
3. The amounts of accrued and withheld tax are equal.

Options 2 and 3 will not cause any difficulties for the company, but in the first case, the tax agent will have to contact the Federal Tax Service so that the overpaid funds are returned to the organization’s current account. The procedure for reflecting tax in 6-NDFL does not depend on the current situation.

Procedure for crediting refunded funds

According to the Tax Code of the Russian Federation, it is possible to return the tax at the expense of funds to be transferred by the tax agent, including those withheld from the income of other persons (paragraph 3, clause 1, article 231 of the Tax Code). Refunds are made in the following order:

• If the funds withheld from the income of all taxpayers are sufficient to be returned to the employee, then the excess amount received is transferred to the employee’s account, and the difference is paid to the budget.
• When the withheld tax in 6-personal income tax is more than calculated, the employer is forced to contact the tax office for a refund (based on paragraph 6, paragraph 1, article 231 and article 78 of the Tax Code). An application is submitted to the Federal Tax Service, to which extracts from tax registers and documents for excessive withholding and transfer of tax are attached. Such documents can be payment orders and tax registers for personal income tax.

The employer can pay the employee the required amount from his own funds, and then wait for the funds to be returned from the budget.

Source: https://spmag.ru/articles/izlishne-uderzhannyy-ndfl-v-6-ndfl

When may an overpayment of personal income tax occur?

An overpayment of personal income tax to the budget may occur when an organization that is a tax agent has excessively withheld and transferred to the budget personal income tax on amounts of income paid to an individual.

When an error in the calculation of personal income tax is identified and the taxpayer’s income is adjusted, the excessively withheld and transferred amount of personal income tax must be returned to the individual. And since the tax agent has already transferred this amount to the budget, then, accordingly, the organization must apply to the tax authority for a refund of overpaid personal income tax amounts.

Situations in which tax may be over-withheld are as follows:

• The employee received vacation in advance and quits. In this case, upon dismissal, the employer may withhold part of the overpaid vacation pay from the income due to the employee, but not more than 20% of the amount of these payments. The employee can return the rest voluntarily (this is where the over-withheld tax will appear). But if the employee refuses to return the vacation pay received in advance, then nothing can be done - the court in such cases takes the employee’s side, and there will be no excessive personal income tax withheld, because the employee kept the funds received for himself, which means he still received the income..
• If an error was made when calculating sick leave benefits and the employee was paid an inflated amount of benefits, then the Social Insurance Fund will not accept such amounts for credit. You will have to recalculate benefits and personal income tax. Again, the excess paid will either have to be withheld from income (but only in case of a counting error!) or the employee must be asked to voluntarily return the funds.
• When an employee is entitled to standard tax deductions, but he did not provide supporting documents in a timely manner . In such a situation, it is necessary to recalculate the tax base for personal income tax from the beginning of the year and an excessively withheld amount of tax may arise.
• If the employee receives a property deduction not from the beginning of the year. In this case, just as in the case of standard deductions, it will be necessary to recalculate the employee’s income from the beginning of the year and return the excess tax withheld.
• If the organization has a foreign employee working under a patent , then the previously withheld personal income tax will have to be returned if a notification of the right to reduce personal income tax on his income by the amount of fixed advance payments was received from the tax authority after the employer began paying such employee income .
• When personal income tax is incorrectly calculated at a higher rate or tax is withheld from non-taxable income.

How to reflect excessively withheld personal income tax in 6 personal income tax

In a situation where the tax agent returns to the “physicist” the excessively withheld personal income tax amount resulting, for example, from the recalculation of vacation pay, such a return is not reflected in section 2 of the 6-NDFL calculation. The returned tax must be shown only in section 1. This was indicated by the Federal Tax Service of Russia in a letter dated October 13, 2016 No. BS-4-11/19483.

Let’s say in the 3rd quarter an employee was paid an income of 100,000 rubles. The amount of personal income tax withheld from this income was 13,000 rubles. But the budget actually received only 12,000 rubles, since the tax agent returned to the individual the amount of tax in the amount of 1,000 rubles that was excessively withheld in the previous period.

Under these circumstances, 6-NDFL must be filled out as follows:

• line 130 “Amount of income actually received” – 100,000;
• line 140 “Amount of tax withheld” – 13,000;
• lines 100-120 are the corresponding dates.

The amount of personal income tax returned must be indicated in section 1 of the 6-personal income tax calculation:

• on line 090 “Amount of tax returned by the tax agent” – 1,000.

Please note that the refunded tax is reflected in 6-NDFL for the reporting period in which the refund was made. If the tax agent recalculated vacation pay for September in October, then the returned over-withheld personal income tax must be shown on line 090 of section 1 of the annual calculation of 6-NDFL.

Full or partial copying of materials is prohibited. When using materials in an agreed manner, a direct indexed link to the source is required: Filling out 6-NDFL in case of refund of over-withheld tax

How to reflect personal income tax returns in 6-NDFL

Current on: August 19, 2021

In a separate consultation, we discussed the procedure for returning excessively withheld personal income tax. How should a tax refund be reflected in 6-NDFL? We'll tell you in our material.

When does the tax agent return the tax?

If the tax agent withheld personal income tax from an individual’s income in a larger amount than required, the difference must be returned. To do this, you only need an application from an individual whose tax was excessively withheld (paragraph 1, clause 1, article 231 of the Tax Code of the Russian Federation).

An individual learns about the overly withheld tax from a tax agent, who must report the fact of “miscalculation” within 10 days from the moment the error was discovered (paragraph 2, clause 1, article 231 of the Tax Code of the Russian Federation).

When acquiring the status of a tax resident of the Russian Federation (Article 207 of the Tax Code of the Russian Federation), personal income tax in connection with recalculation is returned not by the tax agent, but by the tax inspectorate (clause 1.1 of Article 231 of the Tax Code of the Russian Federation).

When should excess personal income tax be returned?

From the date of receipt of an application from an individual, the tax agent has 3 months to return the overly withheld tax. The personal income tax is returned at the expense of the tax that the agent must pay to the budget, and it does not matter from whose income this tax was withheld. Those. The personal income tax can be returned to the employee at the expense of the tax to be transferred to the budget from the income of other employees.

How to show returned personal income tax in 6-NDFL

The total amount of personal income tax returned by the tax agent in form 6-NDFL is shown on line 090 “Amount of tax returned by the tax agent” (Appendix No. 2 to the Order of the Federal Tax Service dated October 14, 2015 No. ММВ-7-11/).

Excessively withheld tax was previously reflected in Section 2 of the Calculation, and was also indicated in Form 6-NDFL of the reporting period on line 070 “Amount of withheld tax.” And filling out line 090 will convince the tax office not to expect the tax agent to pay the current tax. Thus, the tax agent shows that the tax was withheld excessively and was returned to the individual.

This logic is important because the Control Ratios of the Federal Tax Service stipulated that if the difference between lines 070 and 090 is greater than the amount reflected as paid in the Card of settlements with the tax agent’s budget, the tax inspectorate will consider that the personal income tax has not been transferred to the budget in full.

Consequently, the tax agent will be required to provide explanations regarding incomplete payment of tax to the budget.

Therefore, timely reflection of the returned personal income tax on line 090 of the Calculation can save the tax agent from additional attention from the tax inspectorate.

The Federal Tax Service explained how to reflect an individual’s tax refund for previous years in 6-NDFL

In a letter dated July 17, 2017 No. BS-4-11/, the Federal Tax Service in Moscow answered the question about the return (offset) of excessively withheld personal income tax and the reflection of such amounts in 6-personal income tax.

The tax agent returns the tax on the basis of a written application of the taxpayer at the expense of the amounts of this tax to be transferred to the budget on account of upcoming payments both for the specified taxpayer and for other individuals from whose income the tax agent withholds tax, within three months from the date of receipt of the application tax agent.

If the amount of tax to be transferred by the tax agent to the budget is not enough to be refunded on time, then the tax agent requests a tax refund from the budget. Before receiving tax from the budget, the tax agent has the right to return the money to the individual at his own expense.

The procedure for filling out 6-NDFL provides that line 090 indicates the total amount of tax returned by the tax agent to taxpayers, cumulatively from the beginning of the tax period.

If in 2021 a tax agent returns to a taxpayer an over-withheld amount of tax from income received in previous tax periods, then this amount must be reflected on line 090 of Section 1 of the 6-NDFL calculation for the corresponding period. This operation is not reflected in section 2 of the 6-NDFL calculation. In this case, an updated calculation of 6-NDFL for the corresponding tax period is not provided.

In addition, the tax agent must submit to the tax authority updated information on the income of individuals in Form 2-NDFL for the corresponding tax period.

The amount of personal income tax payable to the budget should be reduced by the amount of the refund made. If the tax agent transferred the amount of withheld tax without taking into account the refund amounts, then an overpaid amount of tax arises that is subject to refund from the budget.

Date of receipt of income for personal income tax withholding

Personal income tax must be calculated on the date of receipt of income (Article 223 of the Tax Code of the Russian Federation).

The date of receipt of income is the date on which income is recognized as actually received, but this is not yet a payment in hand. Personal income tax must be calculated from accrued income. And only then the personal income tax is withheld - on the date of payment of income. That is, the calculation and withholding of personal income tax, as a rule, does not occur simultaneously.

Date of receipt of income for personal income tax withholding

Special deadlines for receiving income (that is, the day when personal income tax needs to be calculated) are established:

• the last day of the month for which the person was accrued income - for wages;
• day of dismissal - when making payments to a resigning employee;
• the last day of each month during the period for which the preferential loan was issued, upon receipt of income in the form of material benefits obtained from savings on interest;
• the last day of the month in which the advance report is approved after the employee returns from a business trip.

For all other income, the date of receipt of income when personal income tax needs to be calculated is the day it is paid.

With each payment of income, the agent has an obligation to withhold personal income tax.

The date of actual receipt of income is defined as the day (clause 1 of Article 223 of the Tax Code of the Russian Federation):

• payment of income - when receiving income in cash (no matter from the cash register or through a bank);
• transfer of income in kind - upon receipt of such income;
• acquisition of goods (works, services), securities - upon receipt of income in the form of material benefits;
• offsetting counter homogeneous claims (suppose the founder of the company has a debt to the company (for example, a loan received), and the company, in turn, has a debt to him (for example, unpaid dividends);
• termination of the loan obligation.

The amount of tax calculated on the date of receipt of income must be withheld directly from the taxpayer’s income upon actual payment (clause 4 of Article 226 of the Tax Code of the Russian Federation). And no later than the next day, transfer it to the budget.

Fines for incorrect data in calculations: how to avoid

Let's start with the fact that if the tax agent provided a calculation with incorrect data, then, according to Art. 126.1 of the Tax Code of the Russian Federation, a fine of 500 rubles is imposed on him. for 1 document. However, if the agent managed to submit a corrected document before the error was discovered by the tax authorities, no penalty will be applied. In this regard, it is advisable to submit an updated calculation in order to avoid not only a fine, but also questions from inspectors.

Let us remind you that when submitting an updated calculation, in the “Adjustment number” column, indicate 001 if this is the first updating calculation, 002 if it is the second, etc. The form must be filled out completely, erroneous information is replaced with correct information. Let's look at the main problems of filling out the calculation, which may lead to adjustments and submission of clarifications.