What is a tax deduction carryover balance?

Citizens who need to fill out and submit a document such as 3-NDFL to the tax service often experience difficulties with concepts such as “amount transferred from the previous year” and “deduction for previous years.” These phrases, in fact, are standard and are associated with the process of returning the property deduction (since other deductions are not transferred). In the text, we will understand what constitutes a return on previous tax documents - declarations, how to calculate the figure transferred from past years, and how the declaration is filled out in this situation - what and where the payer needs to indicate.

Deduction for previous years

Deduction for previous year declarations

In the preface it was mentioned that the concept relates to property return - deduction of income tax during the construction or purchase of housing. This means that any personal income tax payer has the right to a refund of thirteen percent of the money spent on improving housing conditions. The tax is returned when a person acquires a house or cottage, as well as a plot of land for a residential building, an apartment or a room, as well as a share in all of the listed objects.

Let us remind you that all officially employed citizens working in our country are required by law to contribute part of their labor and other income to the state treasury. As a rule, these funds are withheld and transferred by the employer himself, who is in the status of a tax agent for hired employees. However, on unearned income - winnings, dividends, money from subletting or rent, citizens pay personal income tax personally.

How much can you expect?

For residents of Russia, the income rate is 13%, for non-residents – 30%. Note that the first are considered to be persons who reside in the country for 183 consecutive days within twelve months. It is permissible to leave for six months without losing your status for treatment, training or work in offshore oil fields. Employees of law enforcement and government agencies and representatives of local government bodies may leave the country for an annual period of time on duty.

Who is a tax resident of the Russian Federation? Our article will help you figure this out. In it we will look at what the tax status depends on, documents for confirmation, as well as the regulatory framework for residents and non-residents.

Let's return to the issue under study. All personal income tax payers can claim a refund in a number of life situations. Not all spent, but only a part less than or equal to the income contributions paid for the year. According to the law, there are six tax deductions in Russia, four of which are considered the most popular.

Table 1. Type of tax deductions

Child tax deduction: how to prepare documents

In the material presented, we discuss how to go through this bureaucratic procedure and use the right to receive a cash deduction for children.

Calculating deductions for previous years is not at all difficult

From here we move on to the remaining questions.

Refund of personal income tax when purchasing a home

Balance information can be obtained from past tax returns. It is possible to submit a request to the Federal Tax Service, as well as calculate the balance yourself. To do this, the amount of previously received compensation should be subtracted from the total deduction amount. The balance is carried over to each subsequent year until it is exhausted.

The deduction can be received as a lump sum or monthly if the payment is made at work. The declaration is submitted at the end of the tax period. If deductions were realized before 2014, then their subsequent registration is impossible.

If you took out a mortgage before 2014 and paid interest later (in 2015, etc.), you can receive compensation for an unlimited amount of interest.

If they are paid in the amount of 4 million rubles, then the state will have to reimburse 13% of this amount, of course, if the borrower pays personal income tax. When applying for a loan after 2014, the deduction is provided strictly from 3 million rubles.

Where did the deduction for previous years come from?

Let us remind you that the maximum when receiving a property deduction without using borrowed money is 260,000 rubles (thirteen percent of two million Russian rubles). We remember that it is impossible to receive more funds at a time than were contributed to the state treasury for taxes in a year.

Let's do the math with an example. Evgeny Aleksandrovich Shchukin receives 25,000 rubles monthly or three hundred thousand annually. That is, for the year he will deduct 39 thousand rubles as a tax on labor income (thirteen percent of three hundred thousand rubles). Then let’s compare two figures – the refund limit in the amount of 260 thousand rubles and taxes paid in the amount of 39 thousand rubles. This means that for the year Shchukin can only claim a similar return figure. What should I do? We are getting to the heart of the matter. 221 thousand rubles for Shchukin will become a deduction carried forward to subsequent years.

Filling example

Taxpayers are offered 3 options for filling out form 3-NDFL:

• on the declaration form;
• through the official Federal Tax Service “Declaration” program (you can download the application on the Tax Inspectorate website);
• through the taxpayer’s personal account on the tax service website.

The program makes it easy to create a report. It is required to answer the questions proposed to the applicant; as a result, the sheets of the 3-NDFL document will be generated automatically.

Filling out a declaration using the program

The principle of working with the application is answers to questions on the basis of which specific declaration sheets are formed. In our case, it is necessary to provide detailed information about the acquired property and income for previous years, so that the program generates Appendix 7 of the document. Please note that sections with personal data and information about the employer are required.

Let's assume that in 2021 an apartment was purchased for 1,900,000 rubles. At the same time, a citizen’s salary subject to income tax is 480 thousand rubles per year.

• In the program, open the menu “Income received in the Russian Federation”.
• We choose a rate of 13%.

We choose a rate of 13 percent

• Click on the green plus sign under the rate and enter information about the employer.
• Below, click another plus sign and fill in information about income (the code is indicated in certificate 2-NDFL).

Filling in information about income

• Earnings are paid for each month, the total amount is calculated automatically.
• Under the total amount, you need to indicate the part of the salary that was withheld (you can find the exact figure in paragraph 5 of the 2-NDFL certificate).

Amount withheld

• Then go to the deductions tab and fill in information about the property
• From the available options, choose “property”.

Choosing a property deduction

• Click the green plus sign to add a property.
• In the window that opens, carefully enter the following information: method of acquiring the property;
• taxpayer identification (owner, etc.);
• cadastral number of the object;
• date of registration of ownership;
• cost of the object;
• if the applicant is a pensioner, you need to tick the appropriate box.

Object information

• After filling in the data, the total price of the object will be displayed below, and under it the field “Deduction for previous years.”
• In this field we enter the refund amount received previously. In our case, these are 2 previous reporting years - 2021 and 2021. The calculation is carried out according to the algorithm we discussed above. We multiply the income of 480 thousand rubles by two and get an amount of 960 thousand. We enter it in the required field.
• Then click the “Save” button. All necessary sheets are generated automatically.
• This is what Appendix 7 will look like with data on deductions for the previous, current and subsequent periods.

Example application 7

• Please note that clause 2.1 indicates previously taken into account deductions, clause 2.6 indicates the amount of the benefit for the reporting period, and clause 2.8 indicates the unused balance that carries over to the next tax period.

If the declaration is filled out without using a program, then the same data is entered manually into the corresponding sheets of the document.

Receiving a deduction for several years at once

A citizen has the right to receive a refund for the purchase of real estate at any time. The only restrictions:

• maximum amount (no more than 2 million rubles);
• availability of official earnings subject to personal income tax;
• recorded income (only earnings for the last three years are taken into account).

The filing deadline of April 30 applies only to those citizens who declare their income and are required to pay tax. Those wishing to receive a property deduction can contact the Federal Tax Service throughout the year following the purchase of real estate.

When receiving a return for several years at once, the information is reflected not in a single declaration, but separately - for each reporting period. Thus, the number of reporting documents must correspond to the number of years for which the return is issued.

How to calculate deductions for previous years?

A citizen has the right to submit documents for the return of property benefits three years ago. Let's look at the second example. Let’s say Natalya Sergeevna Durova purchased a house worth three million rubles in 2014. During this year, Durova earned 300 thousand rubles, for 2015 - 400 thousand rubles, for 2021 - 500 thousand Russian rubles. At this point, she can submit a declaration for the return of part of the funds. You can submit documents earlier, but then the amount of the refund for the year cannot exceed 39 thousand rubles. In three years, Durova has already contributed 156 thousand rubles to the state treasury and can claim this money at once. But 104 thousand rubles are still in “reserve” - the state will pay them to Durova annually, according to the standards of personal income tax deducted by her.

How to find out?

How to find out the balance of the tax deduction for an apartment - you can find out the amount in the previous declaration or send a request to the Federal Tax Service, including in electronic form. To work on the Federal Tax Service website, you will need preliminary registration, as well as key activation (EDS).

You can calculate the amount of compensation yourself. Sample documents can be viewed on the Federal Tax Service website.

How is it calculated?

The balance is calculated based on the value of the property and the amount of compensation previously received.

For example, a citizen bought an apartment with rough finishing for 1 million 340 thousand rubles. He will receive a deduction amount of 174,200 rubles. Thus: 260 thousand – 174200 = 85800 rubles. – the actual amount that the applicant will be able to receive upon the next purchase of real estate.

For example, later a citizen buys a plot of land in DNT worth 300 thousand rubles. His available deduction, taking into account the previously purchased apartment, is still 85,800 rubles. He can receive it by submitting a new declaration to the tax office.

How to fill out 3-NDFL?

Let's simulate a situation similar to the example above in order to understand which lines and what data need to be filled in the declaration. So, Sergei Semenovich Vysotkov purchased housing last year and for the first time wants to get a refund. The actual expenses incurred on purchasing housing are either two million rubles or a larger amount. The tax base is Vysotkov’s income for the year, let’s take the figure of three hundred thousand rubles. The balance of the property tax deduction carried over to the next year is 2,000,000 rubles (limit on the cost of housing) minus 300,000 rubles (annual salary) = 1,700,000 rubles. This is data for the first year.

To receive any refund, you must fill out and submit to the Federal Tax Service a declaration in form 3-NDFL. Read our article on how to fill out this form.

We again repeat from the previous declaration the amount of expenses actually incurred - this is two million rubles. The deduction amount already accepted for accounting last year is 300 thousand rubles, we are also rewriting the data from the previous document. The balance, as we remember, is 1,700,000 rubles, it goes into the new year from the past year. Now the financial base figure is entered again. Let's assume that Vysotkov was promoted within a year and now he earned 400 thousand rubles. Accordingly, the balance of 1,400,000 rubles (1,700,000 minus 400,000) is again transferred to the next year.

When Vysotkov fills out the declaration for the third year, he will again indicate all this data, and if his salary does not increase, after three years the remaining deduction will be a million rubles. According to this scheme, the citizen will fill out all subsequent declarations for future years until the tax deduction due to him is returned in full.

Video - How to fill out the 3rd personal income tax declaration in 5 minutes

Where can I see the balance of my deduction?

The relevant government authorities issue the relevant information, acting in accordance with Article 220 of the Tax Code of the Russian Federation. According to the order of the Federal Tax Service of the Russian Federation dated February 15, 2018, payment can be received by preparing a number of documents.

Any real estate falls under this rule - an apartment, a private house, a room in a communal apartment. There are several payment methods, in particular, a bank loan or a loan from the developer of a new building when applying for an installment plan to purchase a share. The main thing is that payment is made in cash.

Balance information is found in three ways:

1. from the tax return (listed as 3-NDFL). This method is appropriate when you have a copy of the previous declaration with information about the original amount of the deduction. The information is on page “I”, line 2.10.
2. By personally contacting the tax office. To do this, you need to come to the office at the place of registration with your passport. The response time to a request is about 14 days and no more than 1 month.
3. By sending a request to the tax service through the official website, having previously registered and using a personal electronic key. This government service is available to all citizens and has a number of advantages.

Attention! If the tax refund declaration was initially filed not through the website, but at the Federal Tax Service office, you need to come there with a passport to confirm your identity and a TIN certificate. This is the only way employees will be able to register.

Next you need to generate a key. This can be done by selecting the “Profile” tab, “Obtaining a digital signature certificate” and filling out the requested data, as well as creating a password to enter your personal account.

When you register for the first time, you can find out the data in the “Feedback” tab. If the declaration was submitted through the website, then the amount of the balance is checked in “Personal Income Tax and Insurance Contributions - Declaration 3-NDFL”.

Instead of an afterword

Property return is the largest in terms of the amount of money that you can get back into your wallet. The higher a citizen’s salary and the larger the amount of income tax he transfers to the treasury, the more money he can return at a time using the deduction. But most often the transferred personal income tax is several times less than the maximum refund amount, so the payer receives the money in parts. We have explained in detail how this happens. Good luck getting your deductions!

Annually receiving part of the property deduction is a pleasant bonus to the family budget

What is the amount of property deduction taken into account in previous periods

If a citizen has not spent the entire benefit in previous reporting periods, then when filling out the next declaration, the total amount is conditionally decomposed into several terms:

• part taken into account in previous periods;
• the part declared for receipt in the current report;
• the part carried over to the next year (in case the current payment does not cover the amount in full).

The amount taken into account in previous periods is the total amount of deductions previously received for one property.

In the latest edition of 3-NDFL, a column is highlighted in Appendix 7 for information about previously taken into account deductions:

• clause 2.1 “The amount of property tax deduction taken into account when determining the tax base for previous periods.”

Receipt procedure

You must contact the tax office and apply for a deduction. It can be issued on paper or electronically in advance.

The applicant must indicate his income, as well as provide information confirming the fact of purchasing real estate or obtaining a mortgage loan.

How to file a waiver of a tax deduction in favor of a spouse? A sample application is here.

How to calculate the standard child tax credit? Details in this article.

To receive the remainder of the property tax deduction, you must provide:

• certificate 2-NDFL;
• declaration 3-NDFL;
• certificate of payment of interest, as well as payment documents;
• title documents for real estate;
• deed of transfer of real estate.

A citizen can contact the Federal Tax Service in person or through a representative. If the applicant acts through an intermediary, then the tax office will need to bring a notarized power of attorney.

Who is entitled to deduction

You should know that, as a general rule, all tax residents of the Russian Federation are entitled to receive a refund, which includes citizens who:

• live in the country for at least 183 days in a calendar year;
• pay personal income tax;
• have a certificate of ownership in hand.

When a non-working citizen makes a purchase, he will be able to apply for a benefit after he begins to pay income tax from work.

Special cases include processing a return:

• the owner's spouse;
• guardian when registering an apartment for a person under 18 years of age.

Important! Property deductions for the purchase of real estate have no statute of limitations.

If you are interested in the question of whether it is possible to receive a tax deduction for 3 years at once, then the answer is yes. It is possible, but no more than three years preceding the year of application.

Refunds will not be issued:

• IP:
• unemployed students;
• pensioners who have not worked for more than three years;
• unemployed people receiving benefits;
• military personnel;
• those receiving benefits for orphans under 24 years of age;
• non-residents of the Russian Federation.