Return your guide for tax deductions


Thursday, may 3, 2018 — last day of submission of Declaration on tax on income of individuals (personal income tax) for those who are obliged to report their income.

Information about earned in the year 2017, funds will need to declare and provide to the Federal tax service (FTS). Then, in the period before July 15, you will need to list the amount of tax to the budget.

TASS says that this personal income tax who is obliged to pay and how to receive a tax deduction — the official the opportunity to transfer to the state Treasury less tax.

Who and when should pay personal income tax?

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What is personal income tax?

Personal income tax, or the tax to incomes of physical persons is a direct tax, which pays each resident of Russia (i.e. people living in Russia at least half of the year and receiving income). It is considered as a percentage of total earnings.

The lion’s share of personal income tax in Russia are paid working people — regardless of whether they work self-employed or own a business. In addition, personal income tax paid by the landlords, the sellers of the property and won the lottery.

In Russia a flat scale of taxation, i.e. the tax rate does not depend on income: income in 10 thousand roubles a month and in a few million rubles people have to pay 13%.

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Who should submit information about the payment of personal income tax?

In most cases, the employer calculates income tax for each employee and remits the necessary amount to the tax authorities. But there are some categories of Russians, who must report on revenues received.

So, until may 3, 2018 independently to report on the income of citizens, which last year sold an apartment or a car owned for less than three years. This period will have to report to the Federal tax service (FNS) for those who won the lottery or passed in the past year, the property to rent. Also independently submit a Declaration needs entrepreneurs, including the self-employed, lawyers or doctors, who have their own practice.

Submit a Declaration in electronic form, the Declaration form is on the website FTS. To pay tax under the form 3-NDFL is required before July 15.

However, to file a tax return can and other citizens, if they intend to receive a tax deduction. In this case, pass 3-pit at any time.

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A friend sent me a map for a certain amount of money. Do I have to pay tax?

If a friend bought something or paid for your services (i.e. you drove him to another town or helping with repairs), you received money for services rendered and must pay tax.

If the man just gave you this amount of money, according to the letter of the FTS of Russia dated 10.07.2012 № ED-4-3/11325 “ON taxation of incomes of physical persons” to pay her fee is not necessary.

At the same time, if you have been given an apartment, car, share, then you are exempt from tax only if the donor is a close relative (spouse, parent, grandmother, grandfather, brother or sister).

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I am a pensioner. Do I need to pay income tax on my pension?

No, it is not necessary. In accordance with the Tax code of the state pensions, benefits, alimony, compensation, per diem, etc. are not subject to taxes. For more details, see article 217 of the Tax code of the Russian Federation.

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I sold my phone. I have to pay personal income tax?

If telephone, furniture, paintings or the car were in your property more than three years, nor to submit the Declaration or to pay tax is not necessary.

If the property was in your hands, then declare it under the form 3-NDFL will have. But will have to pay only in case if you received from the buyer more than 250 thousand rubles (or more than 1 million, if we are talking about the property — house, cottage, land plot).

If you have received a large amount, then you have two choices.

You can say in the Declaration of property tax deduction, and then you need to pay tax only on the difference between the money that you received, and the amount of 250 thousand rubles (1 mln for real estate).

The second option you may specify in the Declaration is not a property deduction, a deduction in the amount of documented expenses. In this case, you will need to pay only 13% of the difference between purchase price and sales price. But you will need to prove how much the property was worth when you bought it.

We give some examples.
A fan of technology Ivanov purchased the phone for 60 thousand rubles. A year later came a new model of his favorite brand of smartphones, and he decided to sell the old machine to a colleague for 40 thousand Ivanov it is necessary to specify in the Declaration the sale of the phone, but to pay it, nothing will happen.

Motorist Sidorov purchased a car for 2 million roubles and two years later decided to change it for a new one. The old car he sold over 1.8 million Man specifies in the Declaration that the sale and applies the Treaty which was concluded at the time of purchase of the car, with the current price. He documented their expenses. The man has not received income, by contrast, was two years his car has lost in value 200 thousand Tax he pay is not necessary.

Romanova — art lover. She got on “garage sale” for 5 thousand, and a year later sold it at auction for 300 thousand In the Declaration, she claims a tax deduction in the amount of 250 thousand and pays only 6500 rubles — 13% of the difference between its income and deduction.
 

Tax deductions: who, what, how many

In some situations, the payers of personal income tax can reduce the size of the tax base — the amount with which to pay taxes, that is to the advantage of the deduction. Sometimes it looks like the return of a certain amount of money paid in the form of personal income tax by the company where the person works. In other cases — like tax reduction and the employer instead of the FTS will give the money to the employee. There are five types of such “discounts”: standard, social, property, professional and deductions when transferring to future periods the losses from operations with securities. There are also investment tax deduction, but it is rarely used and applies only to professional participants of the securities market. Different types of tax deductions can be summed up between themselves. That is, if a person has a child and he bought an apartment, then he has the right and the “children” and “housing” deductions.

Standard deductions: beneficiaries and parents

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Who can receive the standard tax deduction?

For a tax deduction in the amount of 3 thousand rubles per month are eligible liquidators of the Chernobyl disaster and persons due to an accident at this plant disability; victims of the tragedy at the production Association “Mayak” in 1957, persons who participated in the testing of nuclear weapons; disabled I, II and III groups received injuries in the fighting to protect the USSR and the Russian Federation.

Example: the citizen of Petrov, this category receives a salary in the amount of 50 thousand rubles, of which 43.5 thousand — arms. If he uses less, then the hands will get 43 890 rubles per month. For a year he can get an additional slightly less than 5 thousand rubles.

The tax deduction of 500 roubles in a month you can get: the Heroes of Russia and the Soviet Union, participants of the great Patriotic war, the conflict in Afghanistan, and hostilities in the territory of the Russian Federation. In addition, it have the right people with I and II disability groups, minor prisoners of concentration camps, residents of besieged Leningrad and bone marrow donors.

In our example, a citizen who will use this right, will receive more than 65 rubles per month or 780 in a year.

More information about standard tax deductions contained in article 218 of the Tax code of the Russian Federation.

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Is there a “baby” tax deduction?

Yeah, and he also refers to a standard. For the first and second child deduction is 1400 rubles per month for third and subsequent — 3 thousand. If the child has a disability since childhood, the size of the deduction is 12 thousand rubles plus 1400 or 3 thousand rubles, depending on how many children there are in the family.

It is important that this tax deduction is available until the month in which the parent’s income taxable at 13% and calculated cumulatively from the beginning of year has exceeded 350 thousand.

Back to our example and imagine that from a certain citizen Petrov three children, the eldest of whom has a disability. With a salary of 50 thousand rubles, Petrov-the senior will reach the limit of 350 thousand on the seventh month of the tax period. From that moment it ceases to receive a “discount”. Prior to that, the tax will be levied on the amount to 32.2 thousand rubles, and is 6.5 thousand rubles a parent, or rather, his employer will give the state 4186 roubles. The difference between these two amounts, the company will give the parent. For seven months the family will be able to save more than 16 thousand rubles.

The right to “children” deduction have both parents. If one of them refuses to “bonus”, the second would be to “discount” in the double volume. In addition, if a child has only one parent, the amount of the deduction will also be doubled, but only until such time as the father or mother enters into a new marriage.

The right to deduction are all parents who pay income tax, up to the 18th birthday of the child. But if he is studying full-time at the University, graduate school, residency, internship, or was a cadet of the military school, then to children’s “discount” can be up to 24 years.

All of the above applies including to the adoptive parents, except that the deduction for a child with a disability will be equal to not 12 thousand, and 6 thousand rubles.

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I am a bone marrow donor, and I have three children. I will get both deductions?

Yes, the Tax code allows it.

Social deductions: students, patients and benefactors

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Is it possible to get a tax deduction for a good cause?

Yes. If you donate money to charities, religious institutions and socially oriented and sports NGO, you are entitled to a “discount” when you pay personal income tax. Its maximum size can not be more than a quarter of earned income. The difference between the amount of annual salary and put to good sum should be multiplied by 13%. The number you subtract from personal income tax paid for you by the employer. The result will be equal to the amount that the state will be returned to you.

Here is an example: the citizen of Petrov still earns 50 thousand rubles per month, or 600 thousand rubles a year. In 12 months his company paid income tax in the amount of 78 thousand rubles. Suppose that he donated to orphans of 200 thousand rubles.

A quarter of his income is 150 thousand rubles — the maximum amount of deduction. Subtract it from the annual salary of our hero and multiplied by the 13% obtained 58,5 thousand rubles. Is the size of the personal income tax which this philanthropist had to pay for the year. But his employer gave him 78 thousand rubles. So, the patron is entitled to 19.5 thousand rubles for a good cause.

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Can I get deduction if I help Fund charities?

No, you can’t, the funds should be transferred directly to the account of the organization and confirm this with Bank documents. In addition, the patron is not entitled to any deduction if gets any benefit for themselves (e.g., advertising) or if he does not give money organizations and the private person.

More information about the social tax deduction provided in Chapter 219 of the RF Tax code.

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Heard that you can go to learn and get a tax deduction. Is that so?

Yes. And you can pay not only their education but also education in full-time or your adopted child, and brother or sister — until they reach 24 years of age. The taxpayer himself can learn any form of education, though formal.

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This only applies to universities?

No. The deduction applies to education in kindergartens, universities, educational, sports, music and art schools. You can go on courses to learn a foreign language or learn to drive a car. Moreover, you can get a deduction for education abroad, but on the condition that the educational institution has a license.

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And how much will be the deduction?

The maximum amount of tax base reduction is 120 thousand rubles, if you learn yourself, and 50 thousand, if the education received by your children. Of course, the size of the deduction cannot be more than your actual incurred costs and must not exceed the personal income tax. Thus, if you have used this right, then you can get up to 15.6 thousand rubles for each year of study.

Example. A citizen with a salary of 50 thousand roubles has decided to get second higher education. Study he successfully combines with the work. He entered the University with an annual tuition cost of 130 thousand rubles, education takes three years. The maximum deduction is 120 thousand rubles.

For the year, our hero received 600 thousand rubles of income. If you take away from this amount, the amount of the deduction and multiply by 13%, you get “preferential” income tax — 62,4 thousand rubles. Subtract this amount from the already paid his company 78 thousand rubles and received 15.6 thousand “bonus” that he may receive every year all the time, that learning.

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Is there a tax deduction on treatment?

Yes, there is. The mechanism is the same as in the case of education. Can be treated children, spouse or parents. If medical treatments are not included in the list of expensive, the deduction limit of 120 thousand rubles. If included, the size of the “discount” is limited to only the actual incurred costs and the amount received this year’s citizen income — it cannot exceed any one of these parameters.

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What other social tax deductions are available?

The deduction is for contributions non-state pension agreement with the pension funds and voluntary pension insurance. Such contributions can be done not only for yourself but also for your spouse, parents or children with disabilities. In addition, the deduction can be obtained by payment of additional contributions on funded part of labor pension in case of voluntary life insurance for a period of not less than five years and in 2018 while passing the independent assessment of their qualifications.

In all these cases, the deduction limit is 120 thousand rubles, the maximum amount of the returned funds — 15.6 thousand.

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I paid for the treatment of a child, studied at the driving school and had a life insurance policy mom. I’ll get three less?

Yes, you can get three deduction. But do not forget that the total size of all deductions can not be greater than your income and in total it should not exceed 120 thousand rubles.

Property deductions: new settlers and builders

Separate tax deductions available to those who are planning to buy an apartment, including a mortgage or build a house. And buyers of apartments on credit get two deductions: property and the payment of interest on the loan.

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What is the deduction I’m entitled on the purchase or construction of housing?

If you are in a tax period purchased an apartment or a share in it, and also purchased materials and hired workers, then you can take a deduction in the amount of not more than 2 million rubles. At the same time your income is also a limiting factor — you can’t get a deduction more than earned. However, this type of deduction can you “stretch” for a few years.

Example: the citizen of Petrov with a salary of 50 thousand rubles a month, bought an apartment worth 4 million rubles. As his income for the year amounted to 600 thousand rubles, the maximum deduction he can get is 78 thousand rubles (13% of earnings).

His chief Ivanov, receiving 200 thousand rubles a month, also decided to improve living conditions. He built a house and spent 3 million roubles. Given the fact that Ivanov for the year earns more than 2 million, he will receive the maximum deduction of $ 260 thousand rubles.

Peter, however, has no plans to resign from this company and can receive a tax deduction in the amount of 78 thousand rubles, and in the following year. Property deduction when buying an apartment “becomes” the following year.

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What about mortgage interest?

All the same, only the maximum size of the deduction of 3 million rubles. It can also “stretch” for a few years.

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We buy an apartment with her husband. Which of us gets the deduction?

Both of you may get a deduction provided that you pay income tax and did not receive the same deduction until 2014.

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If we buy the apartment using the maternity capital, we have the right to deduct?

No, you do not have. It right you lose and if part of the funds to the apartment gave you an employer or you received them for any state program.

Learn more about property deductions, see article 220 of the RF Tax code.

Deductions for the pros: entrepreneurs and writers

Another type of deduction is intended to compensate the costs spent for equipment needed for earnings. All these objects should be the documents which confirm the fact of purchase. They can be used by individual entrepreneurs (IP) lawyers, notaries, doctors and other specialists conducting private practice.

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I opened a business and bought in 2016 raw material for the manufacture of Souvenirs worth 2 million rubles. For the year my business brought me 3 million How much can I save and how do I do that?

In the Declaration 3-NDFL, you need to specify your income in 3 million roubles. It is necessary to attach documents confirming the fact of purchase of materials and their use in your business. On until 15 July you need to pay personal income tax, which accounts for 13% of the income minus expenses. That is, instead of 390 thousand roubles you pay 130 thousand roubles.
 

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What if I don’t have these documents?

Even in this case, you are entitled to a deduction.

For example, you declare a 3-NDFL, which last year earned 1 million rubles, and indicate that acquired the equipment, but do not write its value. In this case, you are entitled to a deduction in the amount of 20% of your profit and save 26 thousand rubles. This rule does not apply to self-employed people not registered as individual entrepreneurs.

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In 2015, I put a lot of money in your business, but then nothing is working. But in 2016 I have a good profit. Can I get deduction for 2015 now?

Alas, no. Professional deduction is available only for the last tax period.

More information about professional tax deduction contained in article 221 of the RF Tax code.

How is it possible to “exchange” a deduction?

Perhaps one of the most unusual types of tax deduction that allows you to partially compensate for the failure of the stock market game. If the results of transactions with securities you get a loss, and next year they “hit the jackpot”, then you can obtain a refund of personal income tax.

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How is it possible to “exchange” a deduction?

This type of “discount” takes into account the losses from speculation in the formation of the pit, and you can “carry forward” losses for the last ten years.

Here is an example: citizen Ivanov decided to play on the securities market. In 2013 he lost on the exchange of 10 thousand rubles. In 2014, the loss amounted to 50 thousand rubles. In 2015, a bumbling financier has lost 500 thousand roubles. But last year he was lucky, he successfully sold the shares and received 750 thousand rubles. With this amount, his broker will pay personal income tax of 97.5 thousand rubles. Ivanov, however, may at any time go to the tax, file a Declaration of 3-NDFL, which will indicate the profit (from which tax was paid), and failures from their activities. After some time, Ivanov will be able to get a refund. In our case it will be for 72.8 thousand rubles.

Another story. Mate Ivanov Kirilov also unsuccessfully started to play the exchange. For three years the man lost 520 thousand rubles. In 2016, he bounced back, but in part: earned a total of 100 thousand

The size of its tax base is less than the loss, so the broker will pay personal income tax in the amount of 13 thousand rubles, and then… will get back the same amount of money.

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Are there any restrictions?

Yes, there is. Transfer last year’s losses is impossible if the securities or financial market instruments not traded on a regulated market.

Losses on securities, compensate only losses on them. It’s the same story with financial instruments of urgent transactions.

More detailed information is contained in article 214.1 of the RF Tax code.

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