3-NDFL for mortgage deduction - property and interest deduction

If you are purchasing a home using a mortgage loan, then by law you can receive 13% of the interest costs from the budget.

To get a tax refund, you need to apply for a property tax deduction for a mortgage by contacting the Federal Tax Service with a package of documents, including a 3-NDFL tax return. For the procedure for filling out this form, see the article below; below is a completed sample report for receiving funds from the Federal Tax Service.

For 2021: Form and example of filling out 3-NDFL for a mortgage for 2020.

Mortgage deduction in 2019-2020

Having purchased a residential property, Russian citizens can reimburse paid taxes on this property. The amount of tax deduction is regulated by law.

Let's figure out who can count on what amount.

2 types of tax deductions

People who officially work in Russia and pay taxes can count on 2 types of tax deductions when purchasing a home:

1. For mortgage interest , which he paid to the organization that issued the mortgage. In this case, the taxpayer can return 13% of bank earnings from the loan.
2. For purchased housing - property . This deduction provides a refund of 13% of the cost of the property you purchased.

Important: in both tax deductions, the full refund amount is limited. We will discuss the framework established by law in detail below.

Each of the above deductions operates independently. You can choose one of them or apply for a refund on both at once .

To get the maximum benefit when buying a home with a mortgage, we first recommend filing an application for a property deduction .

The tax deduction on interest that you pay for the year of using the loan will be much less than the benefit from returning the money on the purchased property.

Therefore, when you return the money under the property deduction, you can already deal with the issue of compensation for the interest paid.

The final refund amount will depend not only on the framework established by law. This indicator is also influenced by the official salary of the person applying for compensation.

The more taxes a citizen has paid and filed in the 3-NDFL declaration, the more finance he will receive back after purchasing a home.

Who can return the money

Every citizen of Russia who has officially earned money on this property and promptly entered data into the 3-NDFL declaration can count on a tax refund on purchased housing or land.

A person whose monthly income only partially consists of a “white salary” can also reimburse finances.

If you work officially, then regular payment of part of your earnings to the state falls on the shoulders of the employer.

Important: You will be rejected when applying for a refund if:

• In the process of purchasing a residential property, government subsidies or financial assistance from the company where you work were used;
• real estate was purchased from mother, father, children, sisters or brothers.

How much money can you get back?

The amount of payments you are entitled to depends not only on the final figures in the 3-NDFL certificate, but also on the requirements of the legislative act.

Following the current rules, citizens can count on a deduction of 13% from the costs that were spent on the purchase of real estate.

Taxpayers can also count on compensation in the same amount for expenses spent on servicing the mortgage.

Maximum amounts for compensation:

• real estate - 2 million rubles ;
• mortgage interest - 3 million rubles .

260 thousand rubles as a deduction for acquired property 390 thousand rubles for interest .

You can submit a 3-NDFL certificate more than once. This option is available until the specified limit is reached.

Rules for filing a declaration: step-by-step instructions

Please remember: a declaration is required for the deduction. Other requirements apply to other certificates. Accordingly, the data indicated there is different.

Sequencing:

• download 3-NDFL certificates for the required period from the Federal Tax Service portal;
• prepare the necessary documents;
• complete the required pages or enter data in the “Personal Account” on the tax organization’s website.

The declaration contains 20 sheets, but not all are needed to return personal income tax on a mortgage. The tax portal immediately offers only the necessary pages. When refusing electronic services, follow the correct order yourself. First you need to fill out the title page. Then - the first and seventh applications. At the end - the first and second sections. Each page should be dated and signed.

When filling in with a pen, only blue and black colors are allowed.

Title page

This section is for informational purposes; general information is entered into it. You should not enter information in the section that must be completed by the tax inspector.

Title page (form 3-NDFL).

Please indicate:

• tax period – 34;
• correction number – 0 for the first submission;
• tax organization code;
• country code – 643 for Russia;
• taxpayer category code – 760 for individuals;
• status – 1 for tax residents of Russia, 2 – for non-residents;
• Full name, information from the passport, address and telephone number of the taxpayer.

Signature and date required.

First section

This block contains the amounts that are subject to refund. It should be filled out after all the calculations, having the necessary numbers at hand. Be sure to provide information about the organizations paying the income.

The first section (form 3-NDFL).

You will need to write:

• 010 – code 2, income tax refund;
• 020 – code 07, if personal income tax is withheld from income under an employment contract, 08 – salary without tax withholding, 09 – dividends, 10 – other income;
• 030 – OKTMO code of the municipality in whose territory income tax is paid;
• 040 – 0 – amount to be returned to the budget;
• 050 – return.

Second

In the second block, the basis for calculating the return is calculated.

Explanations are given for all points:

• 010 – annual income, calculated according to 2-NDFL;
• 020 – income not subject to taxation;
• 040 – amount of property deduction;
• 060 – base for calculating personal income tax, the difference between income and deduction;
• 070 – total tax amount – 13% of the calculation base;
• 080 – taxes withheld for the year;
• 160 – the tax that the Federal Tax Service returns, the difference between the amounts is 080 and 070 points.

Second section (form 3-NDFL).

Annex 1

In this block, information on wages, which is subject to income tax, is filled in. The data can be taken from 2-NDFL, which must be ordered in advance from the accounting department or found in the “Personal Account” on the Federal Tax Service website.

Appendix 1 (form 3-NDFL).

In the lines of the application, the tax rate, income code are written, the organization’s data, the amount of annual income and tax are indicated.

Appendix 7

This is where the deduction is calculated. It's difficult to do the calculations yourself. It’s easier to use a special program on the Federal Tax Service website.

Fill out the following:

• 010 – property code (2 – apartment);
• 020 – taxpayer code (01 – owner);
• 031 – object number: 1 – cadastral, 2 – conditional, 3 – inventory;
• 090 – amount of interest paid;
• 140 – size of the tax base;
• 150 – expenses for purchasing housing;
• 160 – the amount of expenses for paying interest on the mortgage;
• 170 – the remaining amount of deduction for the purchase of an apartment;
• 180 – balance of interest deduction.

Appendix 7 (Form 3-NDFL).
You will need the address of the house or apartment, the date of registration of ownership. Point 080 must be filled out if you need to return personal income tax to pay for the cost of the apartment.

It indicates the cost of housing within 2 million rubles. In several other paragraphs it is necessary to write the amounts of previous deductions, if they have already been issued.

Instructions on how to fill out 3-NDFL

The presented algorithm will allow you to independently declare 3-NDFL. Just keep in mind that you only need to fill in the data in the forms that were specified.

That is, even if you have thirteen sheets of forms for the reporting year, you only need to enter data in five of them:

First: Title. On the first page, indicate your full name, passport details, identification code and registration.

Second: 1st section. Here you fill out the page based on the 2-NDFL certificate, which provides all the necessary information. The amount of the refund is indicated on the basis of the calculations carried out in the seventh appendix. It will be equal to the amount of tax paid.

Third: 2nd section. You enter the data here based on the same income certificate. In this section you need to note all amounts and taxes on them.

Fourth: 1st application. Here you indicate the name of the company you work for. You also need to fill in the details of the employing organization and additional data from the second section of 2-NDFL.

Fifth: 7th Appendix. This part is considered the most important in the form. In it you need to calculate the future deduction.

Detailed review of the 7th sheet

Since this part of the form plays a vital role, let us consider its main sections and paragraphs in more detail.

First section:

• 1.1 – format of purchased real estate. The available options are listed in the table below.
• 1.2 – who are you? Options in the table.

  

• 1.3 – here you will need to indicate the cadastral number, the address where the purchased object is located, and its postal code.
• 1.4 – the date of transfer of ownership of the property, which is indicated in the official document.
• 1.5 and 1.6 – state date. real estate registration. You can find it out by looking at the extract received from the Unified State Register.
• 1.7 – what is the share of the person submitting the application.
• 1.8 – how much finance was spent on the purchase (maximum 2 million rubles).
• 1.9 – how much interest was paid.

Second section:

• 2.1 – must be filled out if you previously received payments for residential properties.
• 2.3 and 2.4 - must be filled out if you previously received deductions from the employing organization.
• 2.5 – here we enter the amount from the income certificate, which indicates the “Tax base” item.
• 2.6 – purchase price under the monetary contract.
• 2.7 – the amount of overpayments on the mortgage.
• 2.8 – here we indicate how much the state has left to reimburse you for the property deduction. To determine it, multiply all previously received payments by 0.13 and subtract the result from 2,000,000.
• 2.9 - how much the state has left to reimburse you for mortgage interest. To obtain the figure, multiply all previously paid deductions by 0.13 and subtract the result from 2,000,000.

You can fill out the document by hand or by downloading the Declaration program . Thanks to it, you will be able to fill out each page and print out a full document for submission to the tax office. This program also allows you to apply for a refund.

If there are any errors when filling out the form, the system will highlight them and notify you about the need to make corrections.

What does “tax refund” mean when buying a home?

Most people work and receive remuneration (for example, a salary) to provide for themselves and those who depend on them. Such remuneration is also called a person’s “income” and, according to the legislation of the Russian Federation, tax must be paid on it (personal income tax).

In most cases, the person who pays the income is obligated to withhold and transfer personal income tax to the state: the employer, the customer under a civil process agreement, etc. That is, a person most often receives amounts from which personal income tax has already been withheld, and the tax withholding process can be influenced only indirectly. For example, if you have the right to a standard deduction, contact your employer with a request to provide it. Or, knowing about the tax deduction due to him, you can return the “extra” personal income tax paid to the state.

The mechanism looks like this:

In order to correctly fill out the personal income tax return declaration, you need to actually reflect this scheme on the declaration sheets. Let's look at how to do this.

Submitting 3-NDFL to the tax office

You can submit your 3-NDFL declaration online or during a personal visit to the tax office. We will consider each of these options in more detail below.

In the Internet

Sending documentation along with the 3-NDFL form is possible remotely. This whole process goes like this:

1. You get access to your personal account as a taxpayer . To do this, you still have to go beyond the Internet and visit the nearest tax office. In it you will receive a password to access your personal account on the official website of the National Assembly. Your identification code will serve as your login. You will need your passport when attending the service.
2. Generate and confirm a signature in electronic format . With your digital signature ready, you will be able to officially sign the papers online. To create it, you will need your passport details and email. Signature confirmation will take from 60 minutes to one business day.
3. Fill out 3-NDFL online . Enter data systematically. The process is made easier by the fact that some parameters will be filled in automatically. Another bonus - if you have previously entered data in this way, then the calculation will take place automatically.
4. Upload scanned documentation into the system . The number of attached files is limited. You can upload documents up to 20 megabytes in size. Moreover, it will not be possible to add an archive. It is better to scan voluminous documentation such as the DDU, DCP or mortgage agreement in low resolution. High quality is not necessary, the main thing is that the file is readable. Before sending, check that all the data in the document is clearly visible, otherwise you will have to redo it later.
5. Submitting an application for a refund on your mortgage and housing . Be sure to indicate the account number to which you want to receive compensation.

You can monitor how the application process is progressing by visiting your personal account on the NS website. There you will see the status of the application, the decision on it and all the additional information you need. By tracking this issue, you will be able to make timely adjustments and, if necessary, provide the necessary data or document to NS specialists.

Ways to fill out a document

You can involve third-party specialists in filling out 3-NDFL. In principle, if there is no experience, the borrower intends to fill out the document for the first time, and so it is worth doing. But you need to first compare the cost of the service with the amount of the deduction. Of course, this option may not be profitable. An accountant, as a rule, charges approximately 500 rubles for an interest declaration, because... there is no need to fill out all the declaration sheets.

You can fill out a declaration for a mortgage deduction in the following ways:

1. Enter all information by hand.
2. Print using a computer.
3. Use a computer program to fill out.

The most serious requirements are imposed if the tax refund declaration is filled out by hand. In such a case, the applicant should use only blue, purple or black paste. You need to fill every cell. Moreover, words are written only in capital block letters. If there are empty cells left, you need to put dashes in them.

The declaration contains many designations of monetary amounts. When writing them, you do not need to contribute a penny; they are simply rounded in one direction or another according to mathematical rules.

The declaration form itself can be printed from the official website of the Federal Tax Service or simply asked for during a personal visit. Forms will be provided free of charge. Only after filling it is not necessary to fasten the sheets with firmware or a stapler. It is important that the barcode remains intact.

Alternatively, filling out a personal income tax declaration can be done using a printing device. To do this, you need to install Excel or Acrobat Reader on your computer. The second option is more convenient. Especially if the applicant intends to download declaration forms from the official website of the Federal Tax Service.

When using printing programs, information is also entered only in capital letters. Plus you need to set a specific font: Courier New. And use only sizes 16 - 18.

For the convenience of citizens, there is now another option for filling out the declaration: using Internet programs. They allow you to complete it even for those people who have not previously performed such tasks.

There are two such state programs: “Declaration”, which is located on the official website of the Federal Tax Service and “Taxpayer Legal Entity”, which can be found on the website of the State Research and Computing Center.

The programs contain declaration forms starting from 2014. They help the applicant enter the required information correctly.

In addition, you can find a number of other programs for filling out declarations on the Internet. But they are no longer located on the websites of government organizations.

Deductions from the person paying the income and Appendix 5

Let us turn to line 2.5 of Appendix 7, it is intended precisely to compare the claimed deductions with the income from which they can be deducted. To understand what exactly to put in this line, let’s return to the income certificate received from the employer.

It often happens that the employer, when calculating the salary, has already taken into account some deductions due to the employee. A classic example is deductions for children. The employee writes an application for a deduction at work, and the employer’s accounting department takes the deduction into account when calculating wages. Because these deductions reduce the amount of tax already withheld from your paycheck in the past year, they:

• must be indicated in the income and tax certificate;
• must be indicated in 3-NDFL so that the data in the declaration fully matches the documents used when filling out.

Data on such deductions must be entered in Appendix 5:

To figure out what deductions have already been provided to you, you can look at the codes from the help. But such deductions are always issued upon the preliminary application of the employee. Therefore, if you wrote an application, for example, for a deduction for two children (as in the example), and there are some deductions on your work certificate, that’s what they are. And you can safely add them to Appendix 5.

If the section with deductions in the certificate is not completed, then there were none, and Appendix 5 does not need to be completed.

In line 2.5 of Appendix 7, the amount taxed at the source (employer, customer under GPC, etc.) is entered. This amount, already taking into account the deductions made, can be found in the income certificate:

List of documents to be submitted to the Federal Tax Service

The hardest part is over. Now all that remains is to collect the entire package of documents and apply for a tax refund. In addition to the 3-NDFL itself, you will need:

• Return application;
• Certificate 2-NDFL (from each employer);
• Copies of housing documents (registration certificate, contract, transfer act);
• Confirmation of payment for real estate (receipts, checks, bills, etc.)
• Bank documents (copy of the mortgage agreement with payment schedule, original certificate with interest amounts);
• Loan payment documents.

If housing is purchased for a minor child or as the property of spouses, you will additionally need:

• Certificate of marriage and birth of children;
• Application for distribution of deductions.

Important! As a general rule, the agreement and payments, including interest, must be issued to one person - the one who claims the deduction. The requirement does not apply to some special cases. For example, when real estate is acquired during marriage (and is considered joint property of the spouses) or is registered in the name of a minor child.

You can submit a declaration completed in the program in different ways:

• Contact the tax office (in person or through an intermediary) and submit a printed version;
• Send the declaration by mail (in this case, you must attach a list of attachments to the shipment);
• Send in electronic form through the EDF operator or the Federal Tax Service website (to receive the required file, click the “xml file” button on the program panel).

The declaration is submitted at any time within 3 years after the end of the reporting period. The period for checking documents with the tax authority is 3 months. After its successful completion, within a month, the money is received according to the details specified in the return application.

Information about deductions

Finally, we move on to the most important stage. All that remains is to fill out the deductions. On the tab of the same name, select the “Property” category and check the box:

Further actions:

1. Using the “+” button we create a new object.

1. The next step depends on whether you bought a finished living space or one under construction. In the first case, put a tick on the “purchase and sale agreement”, in the second – on “investment”.

1. Fill in information about the object. We look at the type of ownership and cadastral in the Certificate of Ownership or Extract from the Unified State Register of Real Estate.
2. “Common share” is indicated if a specific share is specified in the certificate of title. If there is no division of shares, the property will be “common joint”.
3. If there is no cadastral number, indicate the conditional or inventory number. If any numbers are missing, put a corresponding mark.
4. After filling out the address, we get something like this:

1. Now you need to set the registration dates. The program itself tells you how to act. Depending on the previously selected object characteristics, only the necessary fields remain active:

• When purchasing a finished home, fill in the date of registration of ownership;

• In the case of shared participation in construction - the date of the act of acceptance and transfer of the apartment from the developer;

• When purchasing land for individual housing construction or with a finished house, the date of registration of ownership of the plot is added.

1. We indicate the date of the application for distribution of the deduction if, for example, the apartment is the property of spouses and they want to share the receipt of the deduction. In this case, each person submits a separate declaration.
2. We leave the year of start of using the deduction as 2021 if we are filing a declaration for the first time. If we fill it out for a balance not received in previous periods, indicate the year of the first request.
3. The cost of the object is specified in the contract. Here you can add the costs of repairs and finishing materials if the apartment was purchased in a “draft” version at the construction stage (this should be noted in the contract).
4. Based on a certificate from the bank, we enter the amount of interest paid for the entire period of the contract if the apartment was purchased with a mortgage.

Having filled in the housing data, we return to the general tab. If the deduction is requested for several objects, we repeat all the steps starting from step 1. In any case, its total amount will not exceed 2,000,000 rubles, even if the apartments were more expensive.

Deductions for previous years are filled in if you are not applying for the first time and are applying for reimbursement of the unpaid balance. In this case, the data is taken from the previous year's declaration.

Figures from the tax agent are entered if the applicant exercised his right and issued a deduction ahead of schedule through his employer.

Results

1. The general principles for filling out 3-NDFL for mortgage interest paid are the same, regardless of the type of property and type of object.
2. The amount of reflected interest increases each year as it is paid to the bank.
3. The law allows you to return 13% on expenses for the purchase of housing and on interest on various objects (if necessary).
4. A tax deduction of mortgage interest in 3-NDFL for a co -borrower who is not the owner is unacceptable if he is not the spouse of the home owner.

What is a property deduction

After purchasing an apartment, you have the right to compensate part of the money spent through a property deduction. This is income that is not taken into account when calculating personal income tax.

To do this, several conditions must coincide:

• You are a resident of the Russian Federation and pay personal income tax at a rate of 13%;
• The purchased property is located in Russia.

Important! The deduction applies not only to the purchase, but also to the construction of housing and shares in it, and the acquisition of a land plot for individual housing construction.

As for the amounts, the maximum deduction in this case is 2,000,000 rubles. In fact, 13% of this money or 260,000 rubles is returned. If the property is worth more, the difference is not taken into account. If less, only 13% of the actual costs incurred will be reimbursed. You can apply for the unused balance when purchasing another home, but only within the limit. As soon as the total deduction for all requests reaches the established 2,000,000 rubles, the right to use it is lost.

Nice additions:

• When purchasing real estate using a targeted loan (mortgage), you can reimburse part of the interest paid to the bank, but not more than 390,000 rubles;
• The price of an apartment is allowed to include the costs of repairs and the purchase of finishing materials if the property was purchased at the stage of unfinished construction and without finishing;
• If it was not possible to return all the money at once, the balance is carried over to the following years (regardless of the calculated amount, you can receive no more than the personal income tax paid in the reporting year).

Important! The legislation does not contain restrictions on the “statute of limitations” for the application, even if the housing was purchased several years ago.

Next, we will clearly analyze how to correctly fill out the document in the program and issue a deduction for 2021, taking into account all of the above features.