Application for personal income tax refund when purchasing an apartment - sample

What is a tax deduction

Every taxpayer who receives income and pays personal income tax at a rate of 13% has the right to claim preferential compensation in the event of certain expenses.
A deduction is the amount of benefit by which a citizen’s tax base is reduced. It is issued only by those citizens who are residents of the Russian Federation and receive income subject to personal income tax at a rate of 13%. All earnings that are subject to taxation as a general rule are reduced by the amount of the annual income tax. The result will be a reduced tax base. Citizens also have the right to submit an application to the territorial Federal Tax Service for compensation for the share of overpaid personal income tax.

A citizen has the right to receive a benefit both through material compensation from the territorial Federal Tax Service and from the employer by providing the necessary documents for a tax deduction and an application for processing a refund. Often the list of documents includes various kinds of confirmation registers - various certificates and notifications.

Only residents of the Russian Federation receive the benefit, whose income is taxed at a rate of 13%. Those employees who are exempt from paying taxes or pay personal income tax at other rates (for example, 6%, 9%, 15%, 30%) are not entitled to file tax deductions for the reporting year.

The current tax legislation regulates the rules for returning money to citizens.

Submission deadlines

The tax authority accepts the application and list of documents when filing a 3-NDFL declaration for a property tax deduction at the end of the tax period. An employer is allowed to submit an application to reduce the amount of personal income tax deducted from wages immediately when such a right arises.

Tax legislation of the Russian Federation does not limit the time limits for filing an application. If there is no income during the tax period, the right to receive a property tax deduction is not lost. If it is not used, then if there is income taxed at a rate of 13% in subsequent tax periods, the taxpayer has the right to claim the specified property deduction (letter of the Ministry of Finance of Russia dated April 28, 2020 No. 03-04-05/34412).

Legal documents

• Art. 220 Tax Code of the Russian Federation
• Clause 7 art. 78 Tax Code of the Russian Federation
• Art. 33
• 34 IC RF
• clause 1 art. 256 Civil Code of the Russian Federation

Types of tax deductions

Depending on the type, the documents for tax deductions also change. An article about what a tax deduction is will help you understand the current types of deductions. The Tax Code states that taxpayers have the right to claim the following tax deductions:

1. Standard - Art. 218 Tax Code of the Russian Federation. Employees receive standard benefits directly from their employers. Organizations act as tax agents. Standard tax deductions are issued for oneself and for children (one child, disabled children). Standard compensation is applied at the employee’s request from the beginning of the year until the salary reaches the limit of 350,000 rubles.
2. Social - Art. 219 of the Tax Code of the Russian Federation. Compensates for overpaid personal income tax for paid training of the employee himself or his immediate family, expensive treatment, charity, formation of the funded part of a pension, or in the case of voluntary pension insurance. Such compensation is received from the employer in the current year after writing an application and providing supporting documentation (checks, contracts). The employee has the right to submit a package of documents for compensation to the territorial Federal Tax Service. They apply to the tax office only after the end of the reporting year.
3. Investment - Art. 219.1 Tax Code of the Russian Federation. Those citizens who, during the reporting period, carried out transactions with securities, deposited money into a special investment account, or received profitability from transactions carried out through an individual investment account are entitled to receive it. Compensation is provided starting in 2021. They receive a refund both from the Federal Tax Service after a year and from the employer. For this purpose, an application and supporting documents are prepared.
4. Property - Art. 220 Tax Code of the Russian Federation. Provided for the purchase of an apartment or other residential real estate, construction of housing, sale of property, or purchase of property from another taxpayer for state or municipal needs. The property deduction is issued either at the territorial inspectorate or at the employer, providing the necessary application and appropriate documents. Such compensation has a certain limit. The maximum for purchasing housing is 260,000 rubles (limit amount is 2,000,000 rubles × 13%). Taxpayers also compensate repaid interest on loan and mortgage agreements and agreements for refinancing previously taken loans. Limit - 390,000.00 rubles (3,000,000 rubles × 13%).
5. Professional - Art. 221 Tax Code of the Russian Federation. A professional tax deduction is provided in case of income generation by individual entrepreneurs and persons engaged in private practice (lawyers, notaries, etc.). Taxable income includes royalties and earnings under civil contracts. Receive a professional tax deduction directly from the tax agent paying the income by submitting an application and all required attachments. Compensation is also issued by inspectors of the Federal Tax Service.

In what cases is a taxpayer granted a deduction?

Not every citizen has the right to take a property deduction from the state when purchasing a home. There are several areas of expenses that the state is ready to compensate from its own treasury. In the case considered in the required material, we are talking about the following situations.

Situation 1. Funds are allocated to a citizen who has purchased residential real estate within the borders of the Russian Federation, which can be represented by:

• premises in an apartment building;
• room;
• residential building;
• cottage;
• townhouse;
• other type of residential property.

This list must also include shares of the above-mentioned objects. In other words, you can not buy a house or apartment, but only a room in them. Such a purchase is also eligible for monetary compensation from the country’s budget, since the citizen has solved the housing problem and has the right to compensation for part of the costs incurred.

Read more about tax deductions when purchasing real estate in our article.

Situation 2. The funds spent by the citizen during the construction of a new residential property are also subject to return. We are talking about individual housing, and not the construction of an apartment building by a developer. That is, if you built a house outside the city according to your own project, drawn up in accordance with the law and rules for the construction of housing, part of the budget funds will be compensated to you from the treasury. Coverage also includes costs such as the acquisition of land for individual construction.

Situation 3. The country also allocates funds to those citizens who cannot afford to completely independently purchase or construct housing due to their insufficiently stable financial situation. They resort to the help of credit institutions or other companies, receiving a cash loan from them to purchase housing. Since this type of loan implies the presence of interest, which the taxpayer is obliged to repay, the state assumes the obligation to compensate part of their amount.

Interest can be compensated not only for purchased housing, but also for self-built housing. In addition, the loan will also be compensated for the land plot.

Note! Some citizens remember that several years ago compensation for the full amount accrued on credit interest was available. However, this circumstance is not relevant today; a limited amount of funds is available for receipt. We’ll tell you which one later in the article.

How to properly apply for a loan from organizations and individual entrepreneurs, as well as from banks

In order to compensate for part of the money spent on interest payments by obtaining a property tax deduction from the state, citizens must pay attention to one important nuance. It is a correctly drawn up contract, each word in which has special legal force, playing a huge role for further compensation of funds.

To return the loan funds, you must correctly draw up the agreement

Let's consider what conditions must be met in each case.

1. If you went to the most expected place to get a loan - a credit institution, it will be quite difficult to make a mistake. Receiving funds for the purchase or construction of housing today is called a “mortgage”. It is provided to citizens under special conditions; many citizens of our state have the right, when receiving it, to certain benefits available to them due to special circumstances. A common practice in some regions of the Russian Federation is to give newlyweds who got married on special days for their territories or the entire country a reduced interest rate on their mortgage. Thus, in the mining region of our country, Kuzbass, young people who entered into marriage on Miners' Day received interest-free housing loans. However, if you decide to get a consumer loan from a bank and invest money to purchase housing, the state will refuse to compensate you for interest on it, even if you present the relevant documents, since there will be no guarantee that the money you are looking for was spent on the purchase of an apartment or house or other residential property.
2. Receiving funds for the purchase of housing from legal entities, for example, employer organizations, is a legal basis for covering part of the interest charges from the state treasury. However, in order for tax specialists not to refuse a citizen who has applied for funds, it is necessary to receive the money not “retroactively,” but by going through the official procedure for borrowing funds, drawn up on a paper agreement. The most important nuance is the following: it is necessary to indicate inside the paper that the employing organization is loaning money to the employee, and not just like that, but for the purchase or construction of their own housing. Without specifying the required information, the contract is not evidence of the purchase of housing made with funds received on credit, which means that the citizen will be legally denied acceptance of the application and issuance of a tax deduction.
3. The same applies to agreements on official papers concluded between a citizen and an individual entrepreneur. Be sure to ask a representative of the organization concluding an agreement with you to indicate that the funds received are issued for the purchase or construction of housing. In this case, the interest you pay can be compensated with the help of the state.

How to apply for a tax deduction through an employer or the Federal Tax Service

Almost every taxpayer asks questions: how to compensate for expenses, how to restore education costs or receive social compensation. The table lists what documents are needed to apply for a tax deduction by type of benefit.

With such documents we issue a tax deduction through the Federal Tax Service.

Documents for personal income tax return on mortgage

Paying off a mortgage for an apartment increases the tax base from which the refund will be calculated to 3,000,000 rubles (the deduction amount can reach 390,000 rubles). The purchase of housing under construction with a mortgage entails obtaining a bank loan and new interest costs paid for the provision of a mortgage or loan.

To receive a deduction on loan interest, you must attach to the tax office along with the 3-NDFL declaration form:

• mortgage agreement, necessarily with a loan repayment schedule,
• bank certificate about interest already paid for the year,
• agreement between you and the bank on providing a loan,
• a bank statement from the account from which funds were paid for mortgage interest or other expense documents representing confirmation of payments: checks, receipts, etc.

You can find out information on how to get a tax deduction on a mortgage from this article.

Procedure for applying for a tax deduction

The procedure and sequence of actions for each type of benefit are similar. If a citizen applies for compensation through an employer, then the application is generated directly during the reporting period. For example, when applying for a standard tax deduction, we write an application addressed to the manager and attach copies of all supporting documents (birth certificate, marriage certificate, certificate or certificate of disability, guardianship documents, etc.).

The procedure for processing a refund through the Federal Tax Service is the same for all types of deductions. The package of documents is submitted strictly after the expiration of the reporting period - the next year after the purchase of housing, payment for education or treatment, transactions with securities, etc. The application is submitted throughout the year following the reporting year; the filing deadline is not regulated in any way. Together with the application for a tax deduction, a declaration in form 3-NDFL is submitted as part of the package of supporting documents. Federal Tax Service specialists have determined what documents are needed to submit a 3-NDFL return for tax deduction in 2021:

• passport of a citizen of the Russian Federation;
• certificate of income from the employer in form 2-NDFL;
• all necessary copies (agreements, checks, certificates, certificates, certificates of interest and amounts paid, payment orders).

A citizen has the right to choose whether to return overpaid income tax to his current account or offset it against future periods.

Documents are submitted directly to the tax inspector. All originals are duplicated with copies, along with copies - all originals for review. The applicant has the right to submit an application through the taxpayer’s personal account on the website https://www.nalog.ru.

IMPORTANT!

From 01/09/2019, a new application form for the return of personal income tax (KND 1150058), approved by order of the Federal Tax Service of Russia dated 02/14/2017 No. ММВ-7-8/ [email protected]

What documents are needed

The package of documents for obtaining benefits in connection with the purchase of real estate consists of:

• applications for tax deductions when purchasing an apartment;
• declaration 3-NDFL;
• 2-NDFL certificates;
• apartment purchase and sale agreement registered in Rosreestr;
• extracts from the Unified State Register for the apartment;
• certificates of ownership if the apartment was purchased before 2016;
• a document confirming the completion of the payment, for example, a receipt from the seller for receiving the money;
• marriage certificate, if the applicant is a member of it, and a written statement from the spouses on the distribution of the tax deduction among themselves.

Return deadlines

A declaration certifying the taxpayer’s income and confirming the amount of income tax paid is submitted to the Federal Tax Service after the expiration of the reporting period in which payment for the service occurred, which makes it possible to return personal income tax.

Submit documents throughout the year following the reporting year. Memo to taxpayers: benefits (regardless of their type) are refunded only for the last 3 years. For pensioners, a refund for the previous 4 years is possible. It turns out that in 2021, citizens will be refunded the overpaid funds for 2021, 2021, 2019 (2021 is also available for pensioners).

After submitting documentation to the Federal Tax Service, a desk audit is mandatory. The inspector checks the papers within three months. After the check, the citizen will receive a notification of a positive or negative decision on return. If the answer is satisfactory, the funds will be transferred to the current account specified in the application within 1 month after a positive decision is made.