According to the legislation of the Russian Federation, every citizen must transfer part of their earned income to the country’s budget. Using a tax deduction from your salary allows you to return part of the funds paid to the state. At the same time, it is important to apply for benefits according to the law, adhering to certain rules and deadlines. Read more about this in our article.
Tax deduction from salary in 2021: types, calculation, receipt
Features of personal income tax deduction from wages
Personal income tax withholding from wages in 2021 is carried out on the basis of the tax base, tax deductions and tax rates. It should be noted that they are used to calculate income tax only for residents of the Russian Federation. The tax rate, depending on individual income, can be:
- for residents of the Russian Federation - 9%, 13% and 35%;
- for non-residents of the Russian Federation - 30%.
In accordance with Article 217 of the Tax Code of the Russian Federation, some income is not taxed and is not taken into account when calculating personal income tax.
Tax deductions affect the calculation of personal income tax. Let's look at them in a little more detail. A tax deduction is the amount by which the tax base is reduced (before calculating the amount of tax payable).
The types of personal income tax deductions are as follows:
Standard deductions (provided to the following categories of citizens):
- parents who are dependent on a student (who is under 24 years of age);
- parents (adoptive parents, guardians) who have minor children.
The right to receive a deduction for children appears from the month of birth of the child, or from the period of his adoption, registration of documents for guardianship.
The standard tax deduction for children is: 1,400 rubles (1–2 children), 3,000 rubles (3 or more children).
Please note that from January 1, 2021, a bill approved by the Government of the Russian Federation came into force, according to which the threshold amount for receiving a deduction increases. Now it is not 280,000 rubles (per year), but 350,000. The calculation is carried out on an accrual basis from the beginning of the year. In 2021, this amount will not change and will remain at the 2021 level in the amount of 350,000 rubles.
Also, starting from 2021, the deduction for each disabled child to parents (adoptive parents) was increased from 3,000 to 12,000 rubles. For adoptive parents and guardians, the deduction will be increased - from 3,000 to 6,000 rubles.
In 2021, a deduction in the amount of 6,000 rubles is provided to guardians, adoptive parents, trustees for each child recognized as disabled before reaching 18 years of age. In 2018, the same amount is provided for a deduction for disabled children of groups 1 and 2, full-time students under the age of 24.
In 2021, a deduction in the amount of 12,000 rubles is provided for parents of disabled children up to the age of 18, or for a disabled person of groups 1 or 2 who is a full-time student up to 24 years of age.
When calculating wages, a deduction of 3,000 rubles in 2018 is provided to the following categories of employees:
- participants in the liquidation of consequences at the Chernobyl nuclear power plant and other objects exposed to radioactive contamination;
- citizens participating in nuclear weapons testing;
- disabled people of the Second World War;
- military personnel who became disabled while participating in hostilities.
When calculating wages, a deduction of 500 rubles in 2018 is provided to the following categories of employees:
- heroes of the USSR and the Russian Federation;
- participants in military operations to defend the country;
- concentration camp prisoners;
- citizens staying in Leningrad during the siege;
- disabled children, as well as groups 1 and 2;
- workers who have suffered radiation sickness, evacuated from radioactive zones, etc.
Social deductions (provided for the following purposes):
- for personal training or for teaching children;
- for treatment;
- for the purchase of medicines;
- for pension provision.
Property deductions (provided for the following purposes):
- car sales;
- purchase (sale) of real estate (apartment, house, land).
The property deduction can only be used once.
Property deductions are discussed in detail in Article 218 of the Tax Code of the Russian Federation.
What salary deductions exist in 2021
The following tax deductions can be obtained directly from the employer:
- standard (Article 218 of the Tax Code of the Russian Federation);
- property (Article 220 of the Tax Code of the Russian Federation);
- social (Article 219 of the Tax Code of the Russian Federation);
- professional (Article 221 of the Tax Code of the Russian Federation).
To obtain any of them, you must write an application, attaching documents confirming your right to it. The application must indicate your full name. and position, the name of the requested deduction and the grounds for its provision.
Let us consider each basis for reducing the tax base in more detail.
Procedure for withholding personal income tax from the minimum wage
If a citizen receives a minimum income that is no more than the established subsistence level, this does not exempt him from paying personal income tax, which will be calculated according to general rules.
An employee is entitled to only one standard tax deduction. The only benefit that can be summed up is the deduction for each child.
That is, when calculating personal income tax on an employee’s minimum salary, the tax will be withheld at the established rate of 13% or 30% minus the amount of the benefit.
The employer can withhold additional payments to the FSSP or alimony only after the personal income tax has been calculated.
Privileges
Since income tax is one of the options for significantly replenishing the state treasury, it is aimed at performing certain social functions. In this case, an interesting point is how income tax is calculated if there are children.
Specific categories of citizens may be eligible for a reduction in the amount of personal income tax deductions or a complete exemption from the withdrawal of this tax. Thus, personal income tax will not be withheld from the following types of income:
- state benefits, pensions, alimony and scholarships;
- rewards for finding treasure;
- awards and grants received for achievements and specified in a government document;
- certain types of compensation payments;
- money for donating blood;
- one-time social payments, etc.
There are types of income from which personal income tax is not partially withheld:
- when presenting a gift worth up to 4,000 rubles;
- from prizes at events organized by government agencies (up to 4,000 rubles);
- financial assistance to its current and former employees (up to 4,000 rubles);
- if documents are presented that confirm payment for medications in the amount of no more than 4,000 rubles.
The procedure for withholding personal income tax for a separate division of the organization
In accordance with paragraph 7 of Article 226 of the Tax Code of the Russian Federation, an organization that has separate divisions pays income tax for individuals at the location of each of them. The amount of personal income tax payable is determined on the basis of the amount of income of taxpayers that was received under civil contracts and employment contracts. Income tax is paid at the location of the separate division of the organization.
One important point should be paid attention to. Let's assume that an employee worked in several separate divisions of an LLC for a month. In such a situation, the withholding of personal income tax and payment of tax on the income of a given individual is made to the budgets at the location of each of the separate divisions of the organization. The time actually worked in each of the separate divisions of the organization is also taken into account.
What is not subject to personal income tax calculation?
We have already mentioned that among the income there are those that are not subject to income tax calculation, namely:
- social pensions;
- social benefits;
- maternity benefits;
- scholarships;
- alimony;
- unemployment benefits;
- compensation (daily expenses);
- lump sum maternity benefit;
- monthly allowance for child care up to 1.5 years;
- monthly compensation for child care up to 3 years old.
The full list is contained in Article 217 of the Tax Code of the Russian Federation.
Refund of over-withheld personal income tax in 2021
In order to make a personal income tax refund, an individual must write a statement, which can be written in any form. The document must include the taxpayer's bank account details. It is to him that the excess withheld personal income tax will be returned.
Today, there are two options for returning excessively withheld personal income tax.
Option 1
After the expiration of the tax period, that is, at the end of the reporting year, when settlements related to the employee have already been completed, the individual entrepreneur does not have the right to refund the excess withheld income tax. In this case, the taxpayer can independently contact the tax service to receive the funds due to him.
Tax officials themselves will recalculate personal income tax if the employee provides them with the following list of documents:
- statement;
- declaration;
- documents confirming the applicant's right to return.
The money will go to the bank account specified in the employee’s application.
Option 2
When personal income tax payments for an employee have not yet been completed, an individual entrepreneur can independently pay the individual. The procedure in this situation is as follows:
1. Check the employee’s statement. 2. Recalculate income tax. 3. Prepare an accounting statement. 4. Notify the employee about the overpayment of personal income tax. 5. At the request of the employee, return the funds to him. 6. Make changes to the tax card (it indicates accruals, transfers and withholdings of income tax).
The individual entrepreneur is obliged to notify the employee of the fact of excessive tax withholding and inform him of the amount within 10 days from the moment this fact is discovered.
Tax refund methods and deduction procedure
To assign a benefit, it is advisable to act in 2 ways: through the tax office or the employer.
Through the Federal Tax Service
This method is suitable if you require a one-time payment of the entire annual refund amount. The benefit should be issued after the end of the reporting period, for example, the next year after the purchase of living space. To assign a benefit, they submit documentation to the Federal Tax Service at the place of registration: papers can be sent by mail, via the Internet through the taxpayer’s personal account, or delivered in person. Next, all the data provided is checked for several months. If approved, the refund will be credited to the account provided by the recipient.
Through the employer
When using this option, the refund occurs in parts - personal income tax is not withheld from the employee’s salary every month.
IMPORTANT! To receive the benefit, you do not need to wait until next year; accruals can be made already in the current year.
To assign compensation, you need to send a package of documents to the Federal Tax Service in any convenient way: by mail, via the Internet or in person. Within 30 days, the inspectorate will generate a notification of entitlement to the benefit. It must be handed over to the employer, additionally enclosing an application for personal income tax compensation.
Sample application to employer for deduction
List of documents
The list of papers required to receive the benefit depends on the type of deduction. The general list includes:
- passport (copy);
- statement;
Sample application for deduction to the Federal Tax Service
- Declaration 3-NDFL (not required when issued through an employer);
- income data;
Help 2-NDFL
The list of additional documents includes:
- confirmation of family ties - when returning to children, brothers, sisters, and so on;
- an agreement with a medical enterprise, a copy of its license, receipts for payment for services, a prescription in form 107/u with a note for the tax authorities - when deducting for treatment;
- a copy of the education agreement, the institution’s license, confirmation of payments - for education benefits;
- papers for property, bills or receipts, loan agreement, certificate from the bank about paid interest - in case of property deduction.
Registration of benefits through the Federal Tax Service usually takes about 4 months, the procedure through the employer is faster, and it is possible to receive accruals as early as the next month after the notification from the inspectorate is sent to the enterprise.
Each taxpayer can exercise the right to compensation for their own expenses in the form of a refunded personal income tax. However, one should take into account the terms, features and restrictions on benefits established by law. Before registering it, it is important to be aware of innovations in the regulatory framework regulating the procedure for providing tax deductions.
Deadlines for returning excessively withheld personal income tax
An individual entrepreneur makes a refund of income tax from funds that must be transferred to the budget both for a specific taxpayer and from the income of his other employees.
Refunds of over-withheld personal income tax must be made within three months from the date of receipt of an application for a refund from an individual. If the individual entrepreneur does not pay the employee the amount on time, the entrepreneur is obliged to pay interest to the employee.
It may happen that an individual entrepreneur does not have the opportunity to refund income tax to an employee due to the fact that the individual entrepreneur’s accounts are frozen. In such a situation, the employee needs to contact the tax office, which will refund the personal income tax to the individual at its own expense.
