Employers must withhold personal income tax (PIT) from their employees' paychecks. Therefore, if an employee has a salary of 30,000 rubles, he will receive only 26,100 rubles in cash minus personal income tax of 13%, if without any difficulties.
In order for some groups of employees to receive more, tax deductions were invented. The deduction works like this: they take the employee’s income, reduce it by the amount of the deduction, and calculate the tax from this amount. That is, they reduce the tax base, and not the tax itself.
Example
Florist Katya has a salary of 30,000₽ and a deduction of 1,400₽ for her daughter, which means they will deduct from her salary:
— in January: (30,000 — 1,400) × 0.13 = 3,718₽
- in February: (60,000 - 2,800) × 0.13 - 3,718 = 3,718 rubles and so on.
Remember, personal income tax is always considered an accrual total from the beginning of the year as in the example.
Deductions for personal income tax are different: standard, property, social and professional. Most often, employees come with standard tax deductions: for themselves or for a child.
Standard tax deductions reduce income, which is subject to personal income tax at a rate of 13%. Standard deductions are not applied to income at other rates and dividends. Non-residents cannot use deductions either. Let us remind you that a non-resident is an individual who stays on the territory of the Russian Federation for less than 183 days within one year.
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Standard deductions for personal income tax in 2021
This type of deduction applies to certain categories of citizens, the list of which is defined in Art. 218 of the Tax Code of the Russian Federation, as well as for taxpayers with children. It includes deductions as a reduction in monthly taxable income:
- For 3000 rubles. for persons: liquidators of the Chernobyl accident who became disabled or suffered radiation sickness as a result of being in contaminated areas;
- disabled people from WWII and other military conflicts.
- participants of the Second World War, heroes of the USSR and the Russian Federation, holders of the Order of Glory of 3 degrees;
Personal income tax deductions for children apply to parents (including adopted ones), guardians, and reduce the base monthly:
- 1400 rub. per month for every 1st and 2nd child;
- 3000 rub. on the 3rd and subsequent ones.
For disabled children under 18 years of age or up to 24 years of age (if they are studying full-time), a deduction is provided for 12,000 rubles. parents, 6,000 rubles each. to guardians.
The monthly income of both parents is reduced by these amounts or, if there is only one parent, by double the amount. In addition, one of the parents may refuse the deduction in favor of the other. Standard tax deductions for personal income tax for children in 2021, as in the past, are provided to individuals from the beginning of the year until the month when their income reaches 350,000 rubles. It is important to remember that dividends are not included in this amount. The right to deduct continues until the child turns 18, and a full-time student until he turns 24.
Standard deductions for personal income tax are benefits of a declarative nature and are provided to an individual on the basis of a personal application submitted to the employer and supported by the necessary set of documents.
Results
Individual taxpayers have the right to take advantage of the property tax deduction for personal income tax when selling property or purchasing housing. In the first case, this deduction can be obtained by sending a 3-NDFL declaration to the Federal Tax Service at the place of registration. In the second - either through the employer or to the Federal Tax Service 3 months after submitting the declaration and a package of documents confirming the purchase.
Find out the deadlines for the desk audit of the 3-NDFL declaration here.
You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.
Social deductions for personal income tax in 2021
Social deductions are regulated by Art. 219 of the Tax Code of the Russian Federation and allowing to reduce the actual costs of the payer for their needs. Circumstances that allow you to return the personal income tax amount are:
- donations to religious, non-profit or charitable organizations (in the amount of actual costs, but not more than 25% of the amount of taxable income received);
- payment for your own education (in the amount of expenses incurred, but not more than the limit of 120,000 rubles per year), as well as for full-time education of your children, sisters, brothers under 24 years of age (in the amount of no more than 50,000 rubles for each within the established limit);
- expenses incurred for your treatment or the treatment of your spouse, parents, children under 18 years of age (in the amount of actual costs, but not more than 120,000 rubles). Deductions for expensive treatment with drugs listed in list No. 201, approved. The Government of the Russian Federation dated March 19, 2001 is provided in the amount of real expenses. In particular, this applies to the implantation of dentures. A personal income tax refund can be made if the conditions are met - if the treatment was carried out at the applicant’s own expense, and the medical institution has the appropriate license;
- insurance costs (in the amount of expenses incurred, but not exceeding the limit of 120,000 rubles). These include the costs of non-state pension provision (NGPO), voluntary pension insurance (VPE) and life insurance (LI), concluded for a period of at least 5 years, as well as the payment of insurance premiums for a funded pension;
- conducting an independent assessment of qualifications (in the amount of actual costs, but not more than 120,000 rubles).
Deduction for insurance - 15,600 rubles
Also, if you use life insurance programs, you can return 13% of the amount up to 120,000 rubles, that is, 15,600 rubles. At the same time, it is not necessary to buy insurance for the entire amount at once; you can make monthly payments, and at the end of the year receive and present a tax certificate about the amount spent.
Property deductions for personal income tax
Art. 220 of the Tax Code of the Russian Federation determines the conditions for providing deductions for transactions with movable or immovable property - sale or purchase.
You can return the amount of withheld tax:
- when purchasing an apartment, room, house (share in them) or other type of real estate, as well as during construction (participation in it) in the amount of actual costs, but not more than 2,000,000 rubles;
- when using borrowed mortgage funds to purchase housing in the amount of expenses on interest paid for using the loan, but not exceeding RUB 3,000,000.
Tax legislation establishes the obligation of property owners to pay tax upon its sale if it was in their possession for less than the established temporary minimum - 5 years. But, if the real estate being sold was received by inheritance, as a gift from a relative, or privatized, then the minimum tenure is 3 years. You can receive a tax deduction if the minimum period of ownership has not expired when selling:
- housing (in the amount of income received not exceeding 1,000,000 rubles);
- other property (in the amount of income not exceeding 250,000 rubles).
Deduction for mortgage interest - 390,000 rubles
If you take out a mortgage on your apartment, you are also entitled to a deduction for the interest you pay to the bank. This is like part of the property deduction from paragraph 1; documents for deduction for interest can be submitted at the same time. But if your taxes for the year are not enough to cover both items of the refund, first you will be refunded the deduction for the purchase of the apartment, and then the interest.
Example 1 : Spouses Olya and Vitya bought an apartment for 6 million rubles with a mortgage. Over the course of a year, they paid the bank interest worth 300,000 rubles. Each spouse can receive a 260,000 ruble deduction for the purchase and 150,000 for overpayment of interest. Together, the couple paid more than 1 million rubles in taxes during the year, so they have the right to return the entire amount at once.
Example 2 : Spouses Lesha and Katya bought an apartment for 3 million with a mortgage and paid the bank interest for 100,000 rubles. Spouses can return 145,000 each. But Katya didn’t pay taxes this year because she was unemployed, and Lesha only paid taxes on 70,000 rubles. Therefore, Lesha gets his 70,000 back, and can receive the rest of the amount next year from a new portion of taxes. Katya will also be able to receive her share if she starts paying taxes and less than three years have passed since the purchase.
The mortgage interest deduction also has an upper limit. This is 390,000 rubles.
Professional deductions for personal income tax
Similar deductions are provided for individuals (not entrepreneurs!) engaged in performing work (services) under GPC agreements, i.e.:
- providing services under contract agreements;
- inventors;
- authors of literary works, etc.
In order to take advantage of the deduction, an individual must submit an application to the tax agent who paid the income. If this is not possible, then at the end of the year you must submit an income tax return (3-NDFL) to the Federal Tax Service. Deductions provided for in Art. 221 of the Tax Code of the Russian Federation are determined in the amount of actual expenses, and if it is impossible to confirm expenses - according to standards from 20 to 40% of the amount of accrued income.
How to calculate salary income tax (personal income tax)?
Salaries are the main source of income for the majority of the population, and therefore are necessarily subject to taxation. Contributions are made by the employer or the citizen himself. The main tax is income tax or personal income tax. In addition to this, deductions and contributions are made from salary:
- to the Pension Fund - 22% of income;
- to the Social Insurance Fund (SIF) - 5.1%;
- to the Federal Compulsory Medical Insurance Fund (FFOMS) - 2.9%.
To calculate personal income tax, it is important to add up all the income (D) of the employee. This takes into account incentive income, bonuses, and so on. The tax deduction (TD) is minus from the result obtained. Next, you should multiply by the percentage of personal income tax (St%) determined by the state (13% or 30%). The calculations for the minimum wage are similar.
Personal income tax = (D-NV)*St%
Interest rates
The percentage withheld depends on whether the person is a resident of the Russian Federation. If he legally stays in the country for more than 183 days annually, then the personal income tax for him is 13%. If a person is recognized as a non-resident, the percentage increases to 30%.
IMPORTANT! The rate of 13% remains for EAEU citizens working in the Russian Federation (Armenians, Belarusians, Kyrgyz, Kazakhs). The same percentage is charged to immigrants and refugees.
For founders and shareholders of an enterprise, the rate is lower and amounts to 9%. But if you win and use the deposit, deductions from income will be 35%.
Calculation example
A resident citizen of the Russian Federation has 2 children under 18 years of age. His monthly income was 90 thousand rubles. To calculate the amount of personal income tax payable to the state, you must first reduce the taxable portion through tax refunds. For 1 and 2 children, a deduction of 1,400 rubles is due. The total refund will be 1400+1400=2800 rubles.
Personal income tax=(90000-2800)*13%=11336 rub.
You can quickly calculate your tax online using a calculator by entering your income data and selecting the desired option.
Determination of personal income tax online
Investment tax deduction for personal income tax in 2021
With this new type of deduction, the state stimulates the activity of citizens in investment activities. It is provided upon redemption of securities traded on the market that were owned by the payer for more than 3 years and on the profits from which he paid tax. The deduction can be issued by a tax agent or when submitting a tax return for 2021 to the Federal Tax Service.
Art. 219.1 provides for the conditions for receiving an annual deduction:
- possession of an IIS (individual investment account) for at least 3 years;
- funds were invested in the development of the domestic securities market;
- preferential profit does not exceed RUB 3,000,000.
This norm has been in effect since 01/01/2014, i.e. in 2021, investors received the right to issue a refund of the funds spent. The investment deduction is calculated taking into account the amount of funds contributed to the IIS for the year, but in an amount not exceeding 400,000 rubles.
It is important to remember that an individual has the right to own only one transaction account and must confirm this fact in writing to the broker.
Deduction for treatment - 15,600 rubles
It comes in two types.
• simply for treatment: this includes private dentistry, paid tests, trips to a sanatorium, purchase of medicines for yourself, parents and children;
• for expensive operations and rare procedures. The refund amount is no longer limited. You will be refunded 13% of any treatment cost.
What documents are needed to receive a deduction?
The list for receiving a property tax deduction includes:
- Identity card (passport, presented at the tax office to the operator when submitting documents). If a tax return is transmitted via electronic communication channels, an electronic signature is required (it can be obtained in your Personal Account on the website nalog.ru).
- Tax return in form 3-NDFL. The declaration template, instructions for filling out and software for auto-filling are available on the website of the Federal Tax Service (https://www.nalog.ru/rn77/taxation/taxes/ndfl/form_ndfl/ - you just need to select your region).
- Application for tax refund. It can be filled out when submitting a declaration to the tax office, or you can take a sample from the Federal Tax Service website (https://www.nalog.ru/rn77/fl/interest/tax_deduction/fl_np/5563300/ – also having previously selected your region).
- Documents confirming the purchase of housing or expenses associated with it. This could be a purchase and sale agreement, an act of acceptance and transfer of premises, a loan agreement, a bank receipt, a check, a receipt.
- Documents confirming ownership of the purchased property. This may be an extract from the Unified State Register or a certificate of ownership.
- A document confirming the payment of personal income tax for the previous year (certificate in form 2-NDFL, it can be obtained from the accounting department of your organization).
- Details certified by the bank to which your income tax refund will be transferred.
How many times can you get a deduction?
A property deduction can be obtained once in a lifetime in the amount of 2 million rubles. Since 2014, it is not tied to a specific property (it doesn’t matter whether you buy one apartment or three). If previously, having received a property deduction of, say, only 10,000 rubles, a person was deprived of the right to a tax benefit, now you can submit declarations until the purchase amount of 2 million rubles is exhausted, and the taxes returned do not reach 260 thousand rubles . After this, the right to deduction ceases.
Unfortunately, those who have already received a deduction under the old rules (before 2014) do not have the right to take advantage of the new ones.
