The Tax Code of the Russian Federation allows citizens who fulfill their tax obligation to the state to return part of the costs of paying for an apartment and interest on a mortgage upon purchase - for this, a tax return 3-NDFL is filled out, on the basis of which a property deduction is provided.
The buyer has the right to take advantage of two separate deductions - 2 million rubles. to cover the cost of paying for housing and 3 million rubles. for partial reimbursement of interest costs under the mortgage agreement.
New form 3-NDFL in 2021
Important news: a new personal income tax return form has been developed for 2021 - the new form can be downloaded from exce below.
Before filling out 3-NDFL, it is important to make sure that the current form is taken, otherwise there is a risk that the tax service will not accept the report.
The new current form was approved by Order of the Federal Tax Service dated August 28, 2020 No. ED-7-11/ [email protected]
In the new form, the barcodes have changed, some pages have been updated. However, the changes will more affect individuals filing a declaration in connection with income from business activities.
Citizens who bought an apartment and want to take advantage of the property deduction will not notice the changes. However, it is necessary to fill out the current version of the declaration. If registration is carried out through the program or in the taxpayer’s personal account, then there is no need to think about it. If filling out is done manually or on a computer without using special programs, then you should check in the upper right corner which order approved the form.
How to fill out 3-NDFL for mortgage deduction in the Declaration 2020 program - step-by-step instructions.
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Code of the country
In the “Country code” field, indicate the code of the state of which the person submitting the declaration is a citizen. Determine the code yourself using the All-Russian Classifier of Countries of the World (OKSM), approved by Gosstandart Decree of December 14, 2001 529-ST. For Russian citizens, enter the code “643”. If a person does not have citizenship, indicate the code of the country that issued him an identity document.
Taxpayer category code
In the “Taxpayer Category Code” field, enter the code in accordance with Appendix No. 1 to the Procedure approved by Order of the Federal Tax Service of Russia dated December 24, 2014 No. ММВ-7-11/671. For an individual entrepreneur, enter “720” in this field, for individuals – “760”. Separate codes are provided for notaries, lawyers and heads of peasant (farm) households.
FULL NAME. and personal data
Please indicate your last name, first name and patronymic in full, without abbreviations, as in your passport. Writing in Latin letters is allowed only for foreigners (subclause 6, clause 3.2 of the Procedure approved by order of the Federal Tax Service of Russia dated December 24, 2014 No. ММВ-7-11/671).
At the top of each page you fill out, indicate your Taxpayer Identification Number, as well as your last name and initials. The TIN must be filled out if the declaration is submitted by an entrepreneur. Individuals may not fill out this field, in which case they will have to provide passport data (clause 1.10 and subclause 7 of clause 3.2 of the Procedure approved by order of the Federal Tax Service of Russia dated December 24, 2014 No. ММВ-7-11/671).
Taxpayer status
In this field you must indicate whether the citizen is a resident or non-resident of the Russian Federation.
If a citizen has been in Russia for more than 183 calendar days over the past 12 months, then he is a resident. In this case, indicate the number 1. If less, enter the number 2. Read the article on how to find out whether an individual is a resident or a non-resident.
Residence
In the “Place of residence of the taxpayer” field, enter the number 1 if you have a residence permit in Russia. If there is no registration, but there is registration at the place of residence, indicate the number 2.
Indicate the postcode, district, city, town, street, house, building and apartment number based on the entry in your passport or certificate of registration of residence. If you do not have a place of residence, please indicate your registered address at your place of residence. Take it from your residence registration certificate.
In the "Region" field, enter the region code. It can be determined using Appendix 3 to the Procedure approved by Order of the Federal Tax Service of Russia dated December 24, 2014 No. ММВ-7-11/671.
Such rules are established by subclause 9 of clause 3.2 of the Procedure approved by order of the Federal Tax Service of Russia dated December 24, 2014 No. ММВ-7-11/671.
The field “Residence address outside the territory of the Russian Federation” is filled in only by non-residents.
Amount of property deduction for mortgage
The essence of the deduction is the possibility of an individual returning income tax on part of the expenses for an apartment. You can return the personal income tax that was transferred to the budget over the past year, provided that the income from which the tax was withheld covered the costs of purchasing a home or paying interest on a mortgage.
When purchasing an apartment using a mortgage loan, the following property deductions are provided:
- for housing costs - 2 million rubles. (amount that can be returned = 13% * 2 million rubles = 260,000 rubles);
- for expenses on paying mortgage interest - 3 million rubles. (amount that can be returned = 13% * 3 million rubles = 390,000 rubles).
Such deductions are due to every individual. It is possible that the person has previously purchased an apartment on credit and taken advantage of these benefits. In this case, the right to deduction will only be if not the entire amount was chosen with the previous apartment. You can use the remainder from a previous purchase.
When returning personal income tax, there is an important limitation - you can return the tax that was paid for the past year.
That is, in 2021, for an apartment purchased with a mortgage, it will be possible to receive an amount within the limits of the transferred tax for 2021. The unpaid balance is carried forward to subsequent years until fully repaid.
How to get 13% back from mortgage interest?
If the apartment is paid for with targeted lending funds, that is, with money taken out on a mortgage, then the cost of paying interest is partially reimbursed through the return of personal income tax - 13 percent of the amount of expenses for the year.
For one past year, you can return the tax within the limits of personal income tax paid for this year, as well as in an amount not exceeding 13 percent of actual annual expenses.
To receive funds, you should contact the Federal Tax Service; this can be done in two ways:
- at the end of the reporting year, a 3-NDFL tax return and a refund application are submitted;
- without waiting for the end of the reporting year, a tax application is submitted for the provision of a property deduction through the employer - in this case, the Federal Tax Service issues a notification, on the basis of which personal income tax is not collected at the place of work from the accrued salary, thus the tax is gradually returned.
An individual can independently choose how he will return 13 percent of the expenses for an apartment - gradually from the employer or immediately with the entire amount for the year based on the 3-NDFL declaration.
Deadlines for filing a declaration with the Federal Tax Service
To get a tax refund on expenses for paying mortgage interest, you need to contact the Federal Tax Service with a declaration at any time after the end of the reporting year.
That is, to receive a property deduction for a mortgage for 2020, you need to submit 3-NDFL at any time in 2021 .
There are no deadlines for filing a return to process tax deductions and refunds. If 3-NDFL is submitted for the purpose of paying personal income tax, then the deadline is limited to April 30.
Right to deduction
To obtain an NV you must:
- The buyer was a tax resident (paid tax at a rate of 13%).
- The ownership of the apartment was registered.
- The cost of the apartment has been fully paid.
- The purchase of the apartment was made at the expense of the buyer’s personal funds.
- The purchase transaction was made between independent persons.
NV is not provided if the apartment was purchased at the expense of the employer, at the expense of maternity capital or other budget funds. No deduction is given if an apartment is purchased from close relatives or other dependent persons. Persons under 18 years of age, unemployed people, and pensioners are not entitled to a property deduction.
How to fill out 3-NDFL for a mortgage for 2021?
Filling out a tax return can be done using a special program that is downloaded for free from the Federal Tax Service website and installed on your computer. The necessary data is entered into the program, after which it generates a correctly completed declaration, which all that remains is to print, sign and submit to the tax authority.
You can download or take a clean, empty 3-NDFL form on paper from the Federal Tax Service and fill it out yourself with a pen.
You can complete the downloaded document on your computer, then print it and sign it.
All of the above registration methods involve submitting a declaration in paper form (in person, by mail or through a representative).
The most convenient filing format is electronic, but for this you need to have a taxpayer’s personal account on the Federal Tax Service website.
Completion requirements
Order of the Federal Tax Service dated August 28, 2020 No. ED-7-11/ [email protected] contains the Procedure for filling out all sheets of the declaration, as well as the requirements for registration - a link to the requirements.
When filling out manually, there should be no corrections or blots. When printing and stapling sheets, do not damage the paper, barcodes or the contents of the declaration cells.
Each field is divided into cells, each of which contains only one character, letter, number, sign. Empty cells are filled with dashes. When filling out on a computer, printing is possible without cell borders or dashes.
It is also important that when filling out on a computer, the indicators need to be aligned to the right, and when filling out manually - to the left.
How should the sheets be formatted?
To receive a property deduction and refund of income tax on mortgage interest paid, fill out the following pages of form 3-NDFL:
- title page;
- section 1 - refundable tax;
- Section 2 - basic calculation of the amount to be refunded;
- Appendix 1 - annual income and withheld personal income tax;
- Appendix 7 - information about the apartment and calculation of the property deduction for the mortgage.
If the apartment was not purchased with a mortgage , then fill out a sample to receive a deduction of 2 million rubles. and tax refund from payment of the cost of a property can be found in the article - 3-NDFL for deduction when purchasing an apartment.
Instructions for filling - table
The table below indicates which fields and lines need to be filled out in the 3-NDFL declaration to receive a property deduction for the cost of mortgage interest on an apartment.
| Line 3-NDFL | Instructions for filling |
| Title page | |
| TIN | TIN is written at the top. In order to fill out the declaration, it is indicated that this detail is not required for individuals, but in practice, tax authorities urgently require it. The TIN is indicated on each completed sheet of form 3-NDFL at the top. |
| Page | Page number in order - placed on each completed page after completion. Blank sheets do not need to be numbered or submitted. |
| Correction No. | Shows whether the declaration is being submitted for the first time (0) or is being adjusted (change number). |
| Taxable period | Code – 34 (means year). |
| Reporting year | If you need to receive a deduction in 2021 for a mortgage paid for 2020, then enter 2021. |
| Tax authority | The Federal Tax Service code where the declaration is submitted can be found on the Federal Tax Service website or you can find out the details at the tax office. |
| Taxpayer information | Data is provided about an individual who paid interest on a mortgage and wishes to return tax in connection with these expenses:
|
| Document details | Details of the document that identifies the declarant are provided, usually a passport - code 21. |
| Taxpayer status | Russian residents put 1. |
| Telephone | The contact number is valid, as tax officials can call it and clarify certain points. |
| Credibility.. | If a citizen who has incurred mortgage expenses personally submits 3-NDFL, then in this section you need to put 1, your signature and the date of signing. If a citizen entrusts the submission to his representative, then he needs to put 2, enter the name of the authorized person, and the representative also signs. |
| Section 1 – data on the amount to be refunded | |
| 010 | Digit 2 |
| 020 | KBK – 182 10102010011000110. When filling out the code, it is better to check with the tax office. |
| 030 | OKTMO |
| 040 | Not filled in |
| 050 | Personal income tax, which the tax office must return to an individual - this indicator is calculated in the second section and transferred from page 160. |
| Appendix 1 to Section 1 – application for personal income tax refund. | |
| 095 | Application number - 1. |
| 100 | The tax amount to be refunded is 050 section 1. |
| 110 | KBK - 020 section. 1. |
| 120 | OKTMO - 030 section. 1. |
| 130 | Enter the year 2021. |
| 140 | The name of the bank where the taxpayer's account is opened. |
| 150 | KBK of the bank indicated in the previous line. |
| 160 | 02 to receive funds on a card (current account). 01 to receive funds into a deposit account. |
| 170 | Bank account. |
| 180 | Full name of the account owner. |
| Section 2 – calculation of deductions and personal income tax for refund | |
| 001 | 13 percent – tax rate |
| 002 | 3 – other income |
| 010 | Total annual income |
| 030 | Total annual income on which income tax is withheld |
| 040 | Amount of deductions from Appendix 7. |
| 060 | The tax base for the reporting year is the difference between lines 030 and 040. |
| 070 | Tax on the tax base - rate from 001 multiplied by base from 060. |
| 080 | The tax withheld for the year is in accordance with Appendix 1, page 080. |
| 160 | The final amount of tax that needs to be returned for the reporting year is the difference between lines 070 and 080. It is this value that is transferred to the final first section in line 050. |
| Appendix 1 – sources of income and income received from them; to fill out, you need a 2-NDFL income certificate received from the employer. Filled out for each source separately. | |
| 010 | The rate at which income was taxed. 13 percent applies to earnings under an employment contract. |
| 020 | Income code – for salary 07. |
| 030, 040, 050 | Details of the source of payments, for example, the employer's organization. Details can be found in the 2-NDFL certificate, |
| 060 | Name of the source of payments - if it is an organization, then its name; if this is an individual (IP), then his full name. |
| 070 | Income before tax for the year from certificate 2-NDFL. |
| 080 | The tax withheld for the year by this source is from certificate 2-NDFL. |
| Appendix 7 - data on the apartment, expenses and deductions | |
| 010 | The code for purchasing an apartment is 02, for a house – 01. |
| 020 | Taxpayer code is 01 for purchase by owner, 11 for retired owners. |
| 030 | Not filled in for apartments. |
| 031 | Cadastral, conditional or inventory number - 1, 2 or 3. You can find out in the sales contract or a document issued from the Unified State Register of Real Estate. If there is no one of the indicated numbers, then 4 is set. |
| 032 | The number whose digit is indicated in field 031 is entered directly. |
| 033 | The apartment address is entered if field 031 contains 4. |
| 040 | Date from the apartment acceptance certificate. |
| 050 | The date of registration of rights to real estate is from the register. |
| 090 | The amount of mortgage interest actually paid for the reporting year - but not more than the property deduction. |
| 110 | Property deduction for mortgage interest, which has already been used in previous years (when applying not for the first time). |
| 130 | The amount of the deduction that was used upon notification through the employer (if the individual applied to the Federal Tax Service for this notification). |
| 140 | The tax base for taxation for the reporting year is the amount of annual income. This indicator limits the amount of deduction for the year that can be used. |
| 160 | The total amount of property deduction for mortgage interest for the reporting year, from which personal income tax will be returned. |
| 180 | The balance of the mortgage deduction, which is carried over to the next year, is calculated as the difference between the expenses from line 090 and the already used mortgage interest deduction (pages 110, 130, 150). |
Example of design in 2021
An example of filling out 3-NDFL in relation to an apartment purchased with a mortgage is given. At the same time, the property deduction for the cost of the apartment has been used in full, for mortgage interest partially - for 2021, the balance of 50,000 rubles must be returned.
The source of income is the employer, the amount of annual income is 900,000, withheld personal income tax is 117,000 rubles.
Filling example:
Required documents
can receive a tax deduction
- by exemption from personal income tax at the place of work;
- through the tax service, which will transfer funds to his bank account.
In the second case, after the year of purchasing the apartment, the applicant must submit the following documents to the Federal Tax Service:
- tax return in form 3-NDFL;
- application with bank details for transferring money;
- certificate in form 2-NDFL;
- a copy of the purchase and sale agreement;
- payment cards;
- extract from the Unified State Register of Real Estate;
- act of acceptance and transfer of the apartment.
Declaration 3-NDFL together with certificate 2-NDFL serves as an indicator that the applicant pays taxes.
In addition, the 2-NDFL certificate indicates the amount of tax deductions of the payer for the year. This amount must be returned to the Federal Tax Service.
If this amount is less than the total amount that must be returned to the buyer of the apartment, then the return of the remaining balance is transferred to the next year.
Documents for tax deduction can be submitted personally by the payer, by mail or electronically to the Federal Tax Service website.
Procedure for filling out the declaration
Info
Further:
- the non-taxable part of income is entered in line 030;
- line 130 records the entire amount received by the employee (including calculated tax);
- line 140 reflects the amount of personal income tax withheld from the taxable portion of income.
Features of checking the correctness of filling out The easiest way to check the correctness of filling out the report is using a special method of the Federal Tax Service of Russia, which in Letter dated March 10, 2021 No. BS-4–11/ clarified the updated control ratios.
The ratios no longer require equality between the tax amount from section 2 with the tax amount from section 1. It now appears that the sum of all lines 140 of section 2 does not have to match line 70 of section 1. Although until recently it was believed that the total sum of lines 140 reflecting the amount of tax withheld must be equal to the amount of line 070 from the previous section.
