Child income tax cut in 2021

If the housing is registered in the name of one parent and child How to distribute the deduction between parents and children The apartment is registered only in the name of the child Does the child lose the right to the deduction in the future Can the parent receive the deduction again using the child’s share

If you bought housing and registered it not only for yourself, but for your minor child, you have the right to receive a property deduction for both your share and the child’s share.

This is stated in paragraph 6 of Art. 220 of the Tax Code of the Russian Federation.

Watch the video in which we talk in detail about what a tax deduction is when buying an apartment, who is entitled to the deduction, what documents need to be prepared and how they can be submitted to the tax office.

How to calculate the property deduction and how much personal income tax will be returned to the account - in examples and explanations from experts of the online service NDFLka.ru.

Not only parents, but also adoptive parents, foster parents, guardians, and trustees can receive a share of the property deduction for a child under 18 years of age.

This rule applies to all housing that falls under tax deduction and is registered as common property with children.

Thus, if you bought or built an apartment, house, land, etc., you can register these real estate objects as joint property or as the sole property of the child.

Important condition! The total tax deduction for your share and for the child’s share cannot be more than 2 million rubles.

Detailed information about the rules for obtaining property is specified in the article “Tax deduction when purchasing an apartment, house, or plot of land.”

How to reduce payroll tax

To reduce personal income tax, an employee can take advantage of one of the tax deductions.
This is the amount by which the state allows the income tax base to be reduced. When you use the deduction, you will either be refunded part of the tax withheld from the budget, or the employer will stop withholding personal income tax from your income until you have exhausted the entire amount of the deduction. There are several types of deductions that can help you save on income taxes:

• standard - for liquidators of the disaster at the Chernobyl nuclear power plant, heroes of the Soviet Union and heroes of the Russian Federation, participants of the Second World War, disabled people since childhood, deduction for children, and so on (Article 218 of the Tax Code of the Russian Federation);
• social - for expenses on charity, training, treatment and purchase of medicines, on non-state pension insurance, on the funded part of the labor pension (Article 219 of the Tax Code of the Russian Federation);
• investment - for persons who have an individual investment account and work with securities (Article 219.1 of the Tax Code of the Russian Federation);
• property - deductions when buying housing and selling property (Article 220 of the Tax Code of the Russian Federation);
• professional - deductions for the income of individual entrepreneurs, notaries, lawyers, royalties, income under GPC agreements, and so on (Article 221 of the Tax Code of the Russian Federation);
• deductions when carrying forward losses from transactions with securities - for those who work with securities and derivatives instruments (Article 220.1 of the Tax Code of the Russian Federation).

Tax deductions are used for different life situations. We bought an apartment - a property deduction, invested part of the funds in shares - an investment deduction, and so on.

Working parents can reduce their personal income tax using standard and social deductions.

Standard deduction of 3,000 rubles

To receive this deduction, the taxpayer must belong to one of the preferential categories:

• disabled military personnel - groups I, II, III;
• disabled people of the Second World War;
• liquidators of the Chernobyl disaster, etc. (clause 1, clause 1, article 218 of the Tax Code of the Russian Federation).

The deduction is provided provided that the individual has income taxed at a rate of 13% (15% if income exceeds 5 million). There is no income limit for this type of deduction.

The deduction is not provided by default; to receive it you must submit an application to your employer. In addition, you will need to confirm your right with supporting documents (for example, attach a copy of a certificate of disability).

If you were unable to take advantage of the deduction from your employer, you can get it from the tax office, as we will explain later in the article.

Who is eligible for the child tax credit?

Citizens who pay personal income tax on income can receive a tax deduction:

• natural and adoptive parents;
• stepmother and stepfather;
• adoptive parents;
• guardians;
• trustees;
• divorced parents;
• parents deprived of parental rights who are involved in providing for the child (Letter of the Federal Tax Service of the Russian Federation dated January 13, 2014 No. BS-2-11 / [email protected] ).

The purpose of the deduction is to support families with children. But the law established an income limit. As soon as an employee’s income exceeds 350,000 rubles from the beginning of the year, he will no longer have to apply the deduction.

The deduction for a child can be received until he turns 18 years old. If a child is studying full-time, for example, at a university, then the bar will increase to 24 years (clause 1 of Article 218 of the Tax Code of the Russian Federation).

Persons who do not have taxable income cannot claim the deduction. These are the unemployed, students, pensioners and individual entrepreneurs on the simplified tax system, unified agricultural tax, UTII or patent, mothers on maternity leave. At the same time, the individual entrepreneur on OSNO retains the right to deduction, since he pays personal income tax.

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Terms and conditions

You can submit documents for deduction at any time during the year. To receive a social deduction for expenses (for treatment, education, insurance) made, for example, in 2021, you can submit a tax return in 2021. You can return the social tax deduction within 3 years from the date of occurrence of expenses. Therefore, if expenses were incurred in 2021, then you can submit a declaration for 2021 not only in 2021, but also in 2021 and 2021.

It is possible to include expenses for treatment, education, and insurance in one declaration if they were incurred in the same year. You can also include a property tax deduction in the same declaration.

You can return the property deduction starting from the year in which the right to receive it arose. The balances of such a deduction, unlike the social one, can be carried over to subsequent years. If the parents are pensioners, then you can submit documents for the previous 4 years, not 3.

The period for a desk audit by the tax authority for all types of deductions is 3 months, the period for transferring funds to the current account is 1 month.

How much can you reduce your income tax thanks to children?

The tax deduction is applied monthly. Its size depends on the number of children the employee has. For example, a parent, spouse of a parent or adoptive parent may receive:

• 1,400 rubles - for the first child;
• 1,400 rubles - for the second child;
• 3,000 rubles - for the third and subsequent children;
• 12,000 rubles - for a disabled child.

In addition, the deduction for a disabled child is summed up with the standard one. That is, for a disabled child, the total deduction will not be 12,000 rubles, but 13,400 rubles (Presidium of the Supreme Court of the Russian Federation dated October 21, 2015).

For guardians, trustees, adoptive parents and their spouses, the deductions are similar, and only the deduction for a disabled child is 6,000 rubles instead of 12,000 rubles.

Example. Orlova N.N. works at Alliance LLC. and Vorobyova A.A. Each salary is 50,000 rubles, but Orlova has three children, and Vorobyova does not. Let's compare their personal income tax payable.

We calculate Orlova’s deduction using the formula: 1,400 + 1,400 + 3,000 = 5,800 rubles per month

This means personal income tax payable by Orlova: (50,000 - 5,800) * 13% = 5,746 rubles.

Vorobyova’s income tax is considered simpler: 50,000 * 13% = 6,500 rubles per month.

Orlova, due to tax deductions, saves 754 rubles per month on personal income tax.

We have collected the monthly savings for each child in the table.

A single parent receives a double deduction until he or she gets married.

In addition, a double deduction is due to one of the parents if the other has written an application to refuse the deduction from his employer. In this case, the second parent must have taxable income. A working parent will have to provide their employer with a spouse’s 2-NDFL certificate every month to prove that the husband or wife’s income did not exceed 350,000 rubles.

How the amount of the deduction depends on the number of children

When determining the amount of the deduction, the total number of children is taken into account. That is, the first child is the oldest in age, regardless of whether a deduction is currently provided for him or not. The order of children is determined in chronological order by date of birth (letters from the Ministry of Finance of Russia dated November 8, 2012 No. 03-04-05/8-1257, dated April 3, 2012 No. 03-04-06/8-96). The amounts of deductions for disabled children are summed up with ordinary deductions depending on the child’s priority (clause 14 of the Review, approved by the Presidium of the Supreme Court of the Russian Federation on October 21, 2015, letter of the Ministry of Finance of Russia dated March 20, 2021 No. 03-04-06/15803 ).

Example of calculating deduction for children

An employee of the organization, Maria Sidorova, is the parent of three children aged 25, 15 and 10 years. Deductions will be provided to her as follows:

• for the first child aged 25 years - no deduction is provided;
• for a second child aged 15 years - a deduction of 1,400 rubles;
• for a third disabled child aged 10 years - a deduction of 3,000 + 12,000 rubles.

What documents are needed to apply for a deduction for children?

To receive a deduction, the employee must write a free-form application and provide the employer with the following documents:

• marriage certificate if the employee is married;
• certificate of disability, if available;
• death certificate or court order declaring the second parent missing, if available;
• confirmation from the registry office that the single mother is not married;
• 2-NDFL from previous place of work;
• documents confirming the status of guardians or trustees.

A deduction can also be obtained for children over 18 years of age if they are studying full-time in educational institutions (Clause 1 of Article 218 of the Tax Code of the Russian Federation). Then you need a certificate from a university or college.

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Receiving a deduction when changing jobs

Example 2

In February 2021 from Romanov I.I. a daughter was born. From January to July 2021 he worked at YuG LLC, and in August 2021. got a new job at Zvezda LLC.

At his first place of work, he was not provided with a child benefit. In order to receive a deduction for a second place of work, he needs to provide a 2-NDFL certificate from LLC “YUG” confirming that he has not received deductions, as well as an application for a deduction and a copy of the child’s birth certificate. Accordingly, from August 2021, an employee can receive a monthly deduction from the Zvezda LLC organization, and for the period from February to July 2021, subject to an income limit of 350,000 rubles. receive a deduction from the Federal Tax Service at the end of 2021.

Also, do not forget that when providing deductions, it is important for a new employer to take into account the receipt of deductions and the employee’s income limit in the 2-NDFL certificate from the previous place of work. This will avoid errors and all kinds of recalculations.

How to reduce personal income tax by educating and treating children

In addition to the standard tax deduction, working parents should pay attention to social deductions.

Deduction for children's education

After graduating from school, a child can enroll in full-time study at a university or secondary school on a paid basis. In this case, both parents will receive a deduction of 50,000 rubles per year, which will be common to them. The deduction can be used annually until the child turns 24 years old.

An important condition is that the educational organization must have the appropriate license. When you apply for a deduction, you will need a copy of it.

Ways to receive a deduction:

• a one-time payment from the budget after the end of the tax period. To do this, it is enough to submit a 3-NDFL certificate and a package of documents confirming the right to the deduction to the Federal Tax Service. This can be done through the “Taxpayer Personal Account”. After the audit, the tax office will transfer the money to your bank account;
• contact your employer and start receiving the deduction in installments before the end of the period: personal income tax will no longer be withheld from you from each salary until the deduction is exhausted. But for this you will need to confirm the right to deduction with the tax authority.

Standard deduction of 500 rubles

It is also applicable to some preferential categories. The full list can be found in paragraphs. 2 clause 1 of article 218 of the Tax Code of the Russian Federation. This is for example:

• disabled since childhood;
• heroes of the Soviet Union and the Russian Federation;
• parents and spouses of military personnel who died in the line of duty, etc.

The principle of obtaining and the conditions for applying this deduction are the same as for the deduction in the amount of 3,000 rubles:

• There are no restrictions on the amount of income.
• It is necessary to declare the right to a deduction to the employer by submitting an application and attaching documents confirming the status.
• You can return the tax later - through the tax office.

If a taxpayer simultaneously falls into both subgroups (i.e., claims a deduction of 500 and 3,000 rubles), then he is entitled to only one of the deductions, but in the largest amount.

If the beneficiary has children, then deductions “for oneself” are provided regardless of deductions “for children” (we will discuss them below).

There are no time limits for self-deductions. It is enough to write an application for a deduction once; it does not need to be duplicated annually.

Example:

Ivanova’s employee is a disabled person of the 2nd group, and her military husband died in the line of duty. She is entitled to two types of deductions - 500 and 3,000 rubles.

The maximum applied is 3,000. Ivanova contacted the accounting department at her place of work and brought the application back in 2021. She received the deduction in 2021, 2021 and continues to receive it in 2021.

The employee’s income from the beginning of 2021 at the beginning of September amounted to 200,000 rubles; in September she received a salary in the amount of 30,000 rubles. Let's calculate the personal income tax amount in September:

1. (230,000 - (3,000 * 9)) * 13% = 26,390 rubles, tax (personal income tax) for 9 months of 2021.
2. For 8 months of 2021, personal income tax has already been withheld in the amount of 22,880 rubles.
3. 26,390 - 22,880 = 3,510 rubles. — personal income tax payable for September is calculated.

From what time is the deduction calculated?

The calculation period is considered to be a calendar year, so the tax benefit regarding the income tax deduction for children will be accrued from the beginning of the year. This does not take into account exactly what month the application, declaration and the rest of the documents were submitted to the tax authority.

2017 made some adjustments: now the beginning of the year for calculating deductions will be counted from the month in which the child was born, or from the day when he was adopted or guardianship was established. If an employee who has children is employed while already having them, the new employer will begin to count the required benefits starting from the month of employment, taking into account the income received directly at the new place.

First, second, third... How much do we subtract?

The tax deduction is assigned separately for each child who meets the age criteria. For a child born first or second, it is the same amount, namely 1,400 rubles. If the taxpayer is in the care of three or more children or older children eligible for deduction, then for each offspring younger than the second, a deduction in the amount of 3,000 rubles will be charged. The amounts allocated for each of them are added up.

The number of children is counted according to seniority, that is, in the chronological order of their birth. In this case, the age of the older children and their status are not important. For example, the oldest is already over 18 and is not a full-time student, that is, he is not subject to a tax deduction, and there are only three children in the family. In this case, the youngest, who has not reached this age, is still the third child, who is entitled to a deduction in a larger amount - 3,000 rubles.

IMPORTANT! In tragic cases of death of children, their number according to seniority does not change: every living child still continues to be considered the same in number as he was at the moment of birth. If spouses have new children in another marriage, they will no longer be considered the first: the chronological order of birth is preserved.

A disabled child has the right to make a deduction within the following limits:

• 12,000 for each of the parents (natural or adopted);
• 6,000 (for guardians and trustees).

NOTE! The amounts given are not the money that will be returned to the taxpayer with children. These funds simply will not be charged the additional 13% due to personal income tax. For example, a citizen with two minor children will receive a tax benefit (1400 + 1400) x 0.13 = 364 rubles. This amount will make his tax burden lighter.

Users of the official website of the Federal Tax Service have the opportunity to independently calculate tax deductions using the online service. To calculate, you will need to enter the initial data in special fields:

• amount of children;
• the amount of taxable income for the previous period;
• data regarding children with disabilities.

Is it necessary to give a deduction for “non-income” months?

There is no clear answer to the question of whether a “children’s” deduction should be provided for months in which the employee did not have income subject to personal income tax at a rate of 13%. The Russian Ministry of Finance believes that everything depends on whether income has resumed this year. If resumed, then deductions for “non-income” months can be provided. If there is no income until December 31 inclusive, then there will be no deductions this year (letter dated October 30, 2018 No. 03-04-05/78020. See “The employee will have no income until the end of the year: is he entitled to a standard deduction according to personal income tax?").

The Federal Tax Service thinks differently. The letter dated 05.29.15 No. BS-19-11/112 states that deductions for a child for months in which there was no income are due in any case (see “Federal Tax Service: standard tax deductions for children can also be received for those months , during which the individual did not have taxable income"). A similar point of view is set out in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated July 14, 2009 No. 4431/09. In our opinion, this approach is correct, and thanks to the court’s position, it is completely safe.

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Taxpayer liability

The employer assumes all obligations for submitting documents to the tax office, calculating and accruing due payments, including tax deductions. This obligation is provided for by the function of a tax agent that the employer performs in relation to employees.

But the employer carries out all its actions based on information and documents received directly from the employee. If the employer fulfilled his duties in good faith, and then it turned out that the employee provided false data and/or fictitious documents, liability for such an act (and sometimes criminal liability) will fall on the taxpayer himself - the hired employee, and not his employer.

Didn't receive the required deduction?

It happens that a taxpayer, for one reason or another, during the year did not receive the tax benefit due to him for his children. Or maybe this deduction was not fully accrued to him: tax agents also make mistakes. This does not mean at all that the possibility of deduction is lost for him.

In the coming year, he has the opportunity to return part of the amount in the amount of a deduction from the tax already paid.

The main thing is to timely submit your tax return and the required documents for a personal income tax refund:

• birth or adoption certificate (copies) for each child;
• Form 3-NDFL (declaration);
• for a son or daughter from 18 to 24 years old - a certificate of in-patient education.