Standard deductions for personal income tax on children

The personal income tax or, in short, the personal income tax is a percentage collected from the employee's salary in favor of the state. It would seem that the percentage of retention is fixed. However, there are a number of persons who can receive a so-called tax deduction. It is granted to both the employee himself and his underage children. It should be noted that both their children and adopted children are considered. Of course, when providing a package of documents.

What is the essence of this deduction? Pros for employee

Tax deduction is a privilege for certain individuals. That is, an employee who provided all the necessary documents can use the right to receive a standard deduction for personal income tax.

The accountant enters all the data in the program "1C: Wages and staff management", after which the employee pays less taxes. This is achieved due to the fact that the taxable base is subject to a monthly reduction for a certain amount of deduction. That is, part of the income is not taxed, and the employee receives a certain amount "in his hands," and does not give it to the budget.

In a number of cases, it is also noted that the deduction may be the amount that was returned to a citizen after the end of the tax period. To do this, you need to submit documents to the tax inspection, fill out the declaration. All this can now be done on the official website without leaving home.

Types of residues. Where to get it?

At the moment, you can consider a number of tax deductions. These include:

• Standard deductions. Traditionally, this kind of deductions can be obtained directly from the employer, providing him with a package of documents.
• Social. These include the possibility of obtaining 13 percent of the amount paid for treatment or training.
• Property deductions. With this option, the citizen himself chooses where exactly to receive this deduction. He can apply to the tax service for a notice. This document allows you to reduce the taxable base of the employer. It is also possible to receive the deduction amount at the end of the tax period, as in the previous paragraph.

Varieties of standard deductions: enough for everyone

Standard deductions are regulated by Article 218 of the Tax Code. It prescribes which categories of individuals can use the standard deduction for personal income tax, and also in what amount it is granted. Also, the article describes the types of documents that need to be provided to the employer.

There are two main types of standard deductions for personal income tax:

• Personal.
• On children.

Each of them has a number of its features, beginning with the one who has the right to use the deduction, ending with the necessary documents. Personal deductions are provided mainly to participants in hostilities who have an appropriate certificate, as well as to the disabled of the first and second groups. The amount of deduction can vary from 500 to three thousand rubles.

Who can receive a deduction for children

The standard deductions for personal income tax for children can be obtained by several categories of persons:

• Have children under 18 years.
• Those whose children are enrolled in higher or secondary educational institutions. However, only the full-time form of education is taken into account, provided that the children are under 24 years of age.
• Guardians, adoptive parents and guardians. In this case, children also should not reach adulthood, or be educated at a higher educational institution or receive a secondary education.

It is worth noting the fact that if a child is already eighteen years old, that is, he has reached adulthood, then his parent has the right to deduct taxes until the end of the calendar year, without providing additional information or other documents. That is, if a child is eighteen years old in January, then his parent or guardian is entitled to standard deductions for personal income tax until December inclusive.

It is also worth noting that one parent may refuse to deduct. Then the other has the right to use a double deduction.

The sums of residues. Nuances

Since 2012, the amount of deductions has changed. The personal, which each citizen received, was abolished, however, the amount of standard deductions for children increased. For the current year 2017, the amounts were as follows:

• 1 400 rubles for the first and second child.
• Three thousand rubles for the third child, as well as every subsequent child.
• Six thousand rubles to the adoptive parents or guardians of the disabled child.
• Twelve thousand rubles to the parents of a disabled child.

If the child is brought up by a single mother or a single father, or a widower or widow who is still not married, the deduction amount is doubled. It should be noted that if the parents of the child are divorced, this does not mean that the parent of the child is entitled to a double deduction as a single parent.

Codes of standard deductions for personal income tax

Each standard deduction has its own code. It is reflected in the accounting programs and is registered in the certificates in the form of 2-NDFL. Therefore, employees, as well as the employer, will not be unpleasant to know what deduction is what a digital value is allocated.

Since the end of 2016, the deduction codes have been changed. This was necessary because the amount of deductions for guardians and parents of a disabled child differed. Therefore, a part of the deductions, for example, for the native child or for the adopted child, were separated by codes.

In the case that was mentioned above, the codes 126 and 130, respectively, will be assigned. For the second child, native and adopted, deductions are used with codes 127 and 131. For the third and subsequent child, the codes 128 for the native and 132 for the adopted child are applied.

As for children with disabilities, the standard tax deductions for personal income tax, whose codes have changed, are denoted as follows:

• 129 - deduction is given to the parent;
• 133 - the deduction of the guardian is granted.

In the 2-NDFL certificate, standard deductions are denoted by codes. Their amount can be seen at the bottom of the certificate, right below the table with the employee's wages, but up to the amount of the tax base.

Documents to be provided to the employer

To receive standard tax deductions, the employee must bring documents for the employer. The package of documents may vary slightly for different categories of persons.

In case the parent is not the only one, it is necessary:

• Personal statement of the employee. Filled in any form or form of the company.
• A birth certificate, a copy for each child. In the event that the older child does not use the deduction due to age, it is still recommended to provide documents for him. The fact is that the amount of deduction for a third child is higher than for the first and second. Therefore, by providing documents for the first, the employee confirms his right to receive an increased deduction. This action in the presence of three or more children.
• Certificate from the university if the child is 18 years old.
• Help on the form 2-NDFL, which must be taken from the previous place of work, if a person worked in a calendar year from another employer. If there were several employers for the current year, it is necessary to bring references from each of them.

If an employee wants to receive a deduction as a single parent, you must additionally provide:

• The certificate under form 25 - for single mothers.
• The death certificate of the other parent is for widows.
• Copy of passport with page "marital status". This is done in order to make sure that the parent no longer marries. In the opposite case, he loses the right to an increased deduction. A copy is provided at least once a year.

An employee with a child with a disability also provides an appropriate certificate. Guardians, trustees and adoptive parents supplement the package with an appropriate document from the guardianship authorities.

What if the standard deduction was not received?

There are situations when the employee has not received a standard deduction from the employer. For example, did not provide any document in time. This does not mean that he is losing the opportunity to recover an overpaid amount of tax.

In order to receive a deduction, he must apply to the tax authority at his place of residence. We need to provide a package of documents, which includes a certificate on the form 2-NDFL from the employer, as well as 3-NDFL. The standard deduction for the child, if it has not really been received, will be returned.

Fill out the tax return helps a special program, which can be downloaded from the official site of the tax inspection. Work in it does not involve the implementation of complex actions, but questions may arise.

In particular, the standard deductions in the 3-NDFL (the so-called tax declaration) are in a separate tab. Here it is necessary to indicate which deductions were given, which for any reason were not applied. It is also worth mentioning the number of children, whether there were changes in their numbers during the year. After filling in and providing you can get standard tax deductions. 3-NDFL in this case is supplemented with a certificate from the employer, a passport, birth certificates of children, as well as certificates that should have been provided to the employer.

Independent calculation of taxes. Checking accountant

Each employee can independently calculate the amount of tax that he must pay to the budget. For this you need:

• Take the amount of your wages.
• Take the deductions from it.
• Multiply the resulting number by 13 percent or by 0.13.

If an employee receives a salary of 20,000 rubles and has three children, she must pay:

(20,000 - 1,400 - 1,400 - 3,000) * 13% = 1,846 rubles.

It is worth noting that if an employee has one child, then he can receive a monthly increase of 182 rubles. It is this amount that reduces its tax after applying a deduction to the child.