Simplified tax deduction in 2021

Thanks to tax innovations, citizens can receive investment and property deductions without leaving home and without filling out a declaration.

First, a few words about what these deductions are.

A property deduction is provided to citizens regarding expenses for the purchase or construction of housing, as well as for the repayment of interest on loans or credits for its repayment (clause 1 of Article 220 of the Tax Code of the Russian Federation).

There are restrictions on the property deduction.

A citizen's expenses regarding the purchase or construction of housing are limited to 2 million rubles, and if interest on a loan or credit is repaid - 3 million rubles. That is, the maximum possible return of money is, respectively, 260 thousand rubles and 390 thousand rubles.

If we are talking about an investment deduction, that is, funds deposited into an individual investment account, then the deduction is limited to the amount of 400 thousand rubles, that is, you can return 52 thousand rubles.

Important! Please note that the innovations do not concern the rules for providing deductions themselves; only their order changes (Federal Law No. 100-FZ dated 04/20/2021).

Innovations

Innovations have been introduced into the Tax Code of the Russian Federation, providing for a simplified procedure for obtaining tax deductions for personal income tax:

Property.
Investment.

Those wishing to take advantage of the innovation will not need to:

fill out a declaration in form 3-NDFL;
collect supporting documents.

The tax office, having received information from banks performing the function of tax agents:

Notify you of your right to receive a deduction.
Will offer to approve the application.

Previously, until the taxpayer independently applied for a deduction and collected a package of supporting documents, the state did not return the money to him.

Cash loan for 1 visit

Apply now

Other options

An active Internet user can register with the Federal Tax Service from his computer through State Services, or fill out an application for the return of a property deduction if he spent his own funds on mortgage lending.

But in order for the application to be accepted, you must have an electronic signature; it can be issued at any office of Rostelecom or companies specializing in such activities. You will be given a storage device (usually a flash drive) on which your personal electronic signature will be created. You can use it to send a wide variety of documents on your behalf in government Internet services.

Step-by-step algorithm of actions

Taxpayer:

Pays through a bank connected to the service for providing tax deductions for personal income tax in a simplified manner:
mortgage;
opens an individual investment account (IIA).
At the end of the year, the bank will transmit information about the expenses incurred by the client to the Federal Tax Service.
Federal Tax Service:
sends a pre-filled application to the taxpayer’s personal account.
The taxpayer decides to take advantage of the offer and signs the application.

Please note that the application from the Federal Tax Service will appear in your personal account:

no later than March 20, if information from the bank was submitted before March 1;
after 20 days from the date of provision of information, if they were provided by the bank after March 1.

In Russia, it will be easier to obtain a tax deduction when buying an apartment, house or land. Now, in order to receive a deduction, the applicant will only need to fill out an application in the taxpayer’s personal account, and it will be generated automatically

The State Duma has received a bill on a simplified procedure for obtaining a property tax deduction for the purchase of an apartment, house or land plot. The bill concerns deductions for the costs of purchasing housing and repaying mortgage interest, as well as investment deductions for transactions accounted for in an individual investment account.

Earlier, the government approved the Ministry of Finance's proposal to simplify the procedure for obtaining a tax deduction when purchasing real estate.

“Collecting various documents and filling out a declaration causes difficulties for people and often they simply do not have this opportunity. The government will simplify this procedure,” Prime Minister Mikhail Mishustin noted at a government meeting on December 10.

Now you can return 13% of the cost of the apartment, and complete all the necessary documents online, without leaving your home. This simple procedure will be even simpler in the near future. We tell you how you can apply for a tax deduction for the purchase of an apartment on the website of the Federal Tax Service (FTS) in a simplified and usual manner.

How to simplify your tax deduction process

Now, in order to receive a tax deduction, you need to submit a declaration at the end of the year in Form 3-NDFL and documents confirming the right to this deduction. According to the new rules, individuals will be able to reimburse personal income tax with just one application - without drawing up a 3-NDFL declaration; confirmation of their right to deduction, as well as scanning and uploading many documents in the taxpayer’s personal account on the website of the Federal Tax Service (FTS) will not be required. All you need to do is fill out an application, indicate the bank details to which you want to transfer funds, and it will be generated automatically. The automated system of the Federal Tax Service will process the information by contacting the necessary sources, for example, the bank that issued the loan or through which the funds were transferred.

Deadlines for processing property deductions

In addition to a significant reduction in the list of required documents, a simplified desk audit will significantly reduce the time required to obtain a tax deduction. Now just checking the submitted documents with the Federal Tax Service takes three months, another 30 days will be required to transfer funds to the account.

According to the new rules, a desk audit will take 30 days from the date of filing an application for a tax deduction, and money will be transferred to the account within 15 days after its completion. However, the period of the desk audit can be extended to the same three months if the tax office suspects that you are violating the laws on taxes and fees.

When will the simplified procedure take effect?

If the State Duma passes the law, it will come into force no earlier than the 1st day of the next tax period for personal income tax. The new simplified rules will apply to tax deductions arising from January 1, 2021, with the exception of provisions for which this article sets a different date for their entry into force, the draft law notes. That is, already in 2021, Russians will be able to apply for a tax deduction for the 2020 tax year in a simplified manner.

Zhanna Kolesnikova, head of commercial practice at the law firm Pleshakov, Ushkalov and Partners:

“In my opinion, this will make life much easier for taxpayers, since now they just need to fill out an electronic application and will not have to fill out a tax return. As a rule, it is precisely because of incorrect completion of the declaration that most taxpayers are denied a deduction. In addition, there is no need to collect and scan supporting documents.

What else is new in a simplified manner

The refund of the amount of overpaid tax in connection with the provision of a tax deduction in a simplified manner if the taxpayer has a debt subject to collection will have to be made only after the amount of overpaid tax has been offset against the arrears (debt).

It is also assumed that if the deadline for returning the amount of overpaid tax in connection with the provision of a tax deduction is violated, interest will be accrued, starting from the twentieth day after the decision to provide it is made.

How much can you get back from the budget?

Russians who have official income and pay personal income tax can return 13% of the cost of the apartment. The state has set a limit - the maximum amount with which a citizen can receive the 13% due to him is 2 million rubles. Thus, you will be able to return 260 thousand rubles. If the apartment cost less than the established limit, then you can use it when buying another apartment.

You can also get paid taxes back from the budget if the apartment was purchased with a mortgage. Russians can receive 13% from the budget from interest paid on a housing loan. At the same time, the deduction limit is higher - 3 million rubles. Thus, you will be able to return 390 thousand rubles. This right can only be used once.

In total, these two deductions amount to a serious amount - 650 thousand rubles. If the property was acquired during marriage and is joint property, then each spouse has the right to deduction. Thus, the family can return up to 1.3 million rubles. from taxes paid.

Instructions for registering a property deduction

Let's look at the rules that apply before the simplified procedure comes into effect. To apply for a property deduction, you must register in the taxpayer’s personal account on the Federal Tax Service website. You can also log in if you already have an account on the government services website. After completing registration in your personal account, you need to obtain an electronic digital signature and you can begin filling out an application for a property deduction from the purchase of real estate.

Here you need to select the territorial tax authority for filing the declaration and the year for which you want to receive a property deduction.

Next, fill out the tax return (in Form 3-NDFL) on the website. It will be loaded automatically with the necessary data from the certificate in form 2-NDFL. If the Federal Tax Service website does not contain data on taxes paid for previous years, then a certificate can be obtained from the accounting department at the place of work.

We select a property for which you need to receive a property deduction, and enter the amount of expenses spent on acquiring the property.

To receive a property deduction online, you need to make scans of the documents:

— an extract from the Unified State Register of Rights to Real Estate and Transactions with It (USRP);

- when purchasing an apartment or room - an agreement on the purchase of an apartment or room, an act of transfer of an apartment or a share in it, or a certificate of state registration of the right to an apartment or room (a share/shares in it);

- when repaying interest on a loan - a target credit agreement or loan agreement, a mortgage agreement concluded with credit or other organizations, a schedule for repaying the loan (loan) and paying interest for the use of borrowed funds;

- documents confirming expenses for the acquisition of property (receipts for receipt orders, bank statements on the transfer of funds from the buyer’s account to the seller’s account, sales and cash receipts, acts on the purchase of materials from individuals indicating the address and passport details of the seller, and others documentation);

- extracts from the taxpayer’s personal accounts, certificates from the organization that issued the loan about the interest paid for using the loan about the payment of interest on the loan or mortgage agreement.

After downloading and sending all the necessary documents, you need to write an application for a refund of taxes paid from the budget, indicating the account number where you want to transfer the deduction. Next, wait for the application to be reviewed by the tax authority. This usually takes three to four months.

When initiative is not needed

Taking advantage of the innovation that gives you the right to deduct tax in a simplified manner, you do not need to do anything:

nor collect documents;
nor apply to the Federal Tax Service.

It is necessary on March 20 of the following year after the transaction remotely without reference to time and place:

Go to the website nalog.gov.ru.
Login to the personal account of an individual:
through State Services.
Receive a pre-filled application to receive tax deductions for personal income tax in a simplified manner.
Sign the application.

It should be borne in mind that the joining of banks to information interaction with banks is carried out on a voluntary basis. Therefore, when concluding an agreement to purchase property or maintain an individual investment account, check whether the bank is included in the list of tax agents.

Cash loan at low interest - from 5.5%

Apply now

What are the tax deductions for IIS?

IIS is a brokerage account with additional features and restrictions. Its main advantage is tax benefits: you can receive two types of deductions to choose from - A and B. To do this, you need to meet several basic conditions:

top up your account for any amount, but up to a million rubles per year;
do not withdraw money from IIS for three years;
have only one IRA;
do not change the type of deduction during the validity period of the IIS.

If you withdraw money from the account earlier, it will lose its IIS status and will be closed, and the deductions already received will have to be returned to the tax office.

Let's take a closer look at the types of deductions.

Type A is an annual benefit on contributions.

With this deduction, the tax office will return 13% of the amount that the investor contributed to the IIS for the year. This will be a return of the investor’s personal income tax, which he paid to the budget earlier, for example, through an employer from his income. Such a deduction cannot be more than 52 thousand per year - this is 13% of 400 thousand rubles.

For example, if you replenished your IIS with 500 thousand or a million, the tax office will still return only 52 thousand. Therefore, it is most profitable to replenish the IIS by 400 thousand per year - this way you can get the maximum deduction.

Type A deduction is suitable for those who pay personal income tax. For example, employees of companies or individual entrepreneurs, if they pay themselves a salary. Self-employed people, investors and retirees pay other types of taxes or no taxes at all, so they are not eligible for the Type A deduction on these incomes.

Another limitation: the state will not be able to return more money than the investor paid to the budget. Therefore, the amount of annual personal income tax must be at least equal to the deduction. Type A deductions cannot be transferred to other years.

The employer transferred personal income tax for the investor in the amount of 35 thousand rubles for 2021. And the investor contributed 400 thousand to the IIS and wants to receive a deduction of 52 thousand. The tax office will return only 35 thousand rubles, despite the fact that 13% of 400 thousand is 52 thousand rubles. You cannot transfer such a deduction to a later date and receive your balance in the future.

Type A deduction can be issued every year or once every few years.
For example, if an investor wants to wait three years and decide which type of deduction is more profitable for him to receive. Type B is an income deduction
. He assumes that after three years the investor will be exempt from income tax on IIS. This format is usually chosen by investors who do not pay personal income tax or if, as a result of their investment, the tax will be more than 52 thousand rubles. For example, if they have an active strategy and replenish their IIS by more than 400 thousand rubles per year.

The most popular tax deduction option is type A. It is beneficial for those who are officially employed and are just starting to invest, because with any financial result you can get some of the money back.

Type A deduction can be issued through the Federal Tax Service website. Moreover, if an investor has applied for such a deduction, it is no longer possible to change the decision and use deduction B. You cannot combine them: get part from one deduction, and part from another.

If you have the right to other types of tax benefits, then it is more profitable to first apply for a deduction under IIS. This will help you get maximum payouts.

An investor bought an apartment for 2 million rubles and can receive a deduction of 260 thousand rubles. In 2021, his employer paid 130 thousand personal income tax from his salary, so he can receive the full amount of the IIS deduction - 52 thousand rubles. If you first apply for a deduction for the purchase of housing, the investor will return 130 thousand rubles, and next year another 130 thousand. But there will be no money left from his taxes to deduct under IIS. If you first apply for a deduction under the IIS, then the investor will receive 52 thousand rubles and another 78 thousand will be left for payments for housing. The tax authorities will pay the remaining 182 thousand rubles in the following years.

How to return tax on treatment or training through State Services

There are several types of tax deductions in Russia. One of the categories is social, which combines expenses for treatment, education, insurance, and charity. Its limit is 120,000 per year, that is, you can return 13% of this amount.

The return procedure is still the same - filing a tax return. On the State Services website we have already found where this form is located, so after selecting the reporting year, we proceed to the following steps:

First, the block with income is filled in; all data can be taken from the 2-NDFL certificate received from the employer.
The next tab is deductions, select the “Social” section.
Enter information about the license of a medical or educational institution, depending on the direction of expenses.
Be sure to indicate the total amount of expenses based on checks, invoices, and receipts.

After filling out the document, you can save it, print it, or send it to the tax office. It is convenient to simply log in to the Federal Tax Service website to send the Declaration here, immediately receiving an electronic signature.