Conditions for receiving a deduction Amount of tax deduction for life insurance Combined contract If the contract was concluded before January 1, 2015 Life insurance to obtain a loan Documents for a tax deduction for life insurance For what period can you receive a deduction for insurance
Insurance companies everywhere offer voluntary life insurance services. In this case, the insurance product is essentially an investment or savings instrument for the client.
We created a video instruction in which we explained in detail what a tax deduction for life insurance is, what conditions must be taken into account when concluding an insurance contract, who is entitled to the deduction, and much more.
The terms of a life insurance contract imply payment of an insurance premium not only in the event of the death of the insured, but also if he reaches a certain age. And then the insured (or other beneficiary) is paid the insurance amount for the “survival” risk.
In addition to all the benefits that a client of an insurance company receives when concluding a life insurance contract, there is one more benefit - a tax deduction on insurance premiums. Since 2015 Art. 219 of the Tax Code of the Russian Federation has been supplemented with relevant conditions.
This is when up to 13% of all payments are returned to the account of the person who paid for the insurance. Why to the account of the “person who paid for the insurance” and not to the account of the insured? Because the deduction is provided for real expenses incurred from one’s own funds. And if, for example, the employer paid for the insurance, the insured employee cannot claim a tax deduction.
Receive a tax deduction within a week with the Quick Deduction service!
Get a service
In what cases can you get a tax deduction for life insurance?
You can take advantage of the social tax deduction for life insurance and get part of your expenses back under the following conditions:
1. A voluntary life insurance contract is concluded with an insurance organization for a period of at least five years.
Example: In 2021 Dorogina S.V. entered into a life insurance contract for a period of 1 year. Due to the fact that the contract was concluded for a period of less than 5 years, S.V. Dorogina received a social deduction for the costs of paying insurance premiums. will not be able to use it.
Example: Platonov G.A. entered into a life insurance contract in 2021 for a period of 7 years. For insurance premiums that Platonov G.A. pays annually, he will be able to receive a tax deduction.
2. The contract was concluded to insure one’s own life or the following relatives:
- spouse (including widows, widowers),
- parents (including adoptive parents),
- children (including adopted children under guardianship (trusteeship)).
Please note: unlike the deduction for treatment/education, there are no restrictions on the age of children, that is, a deduction can be obtained even for the costs of life insurance for your adult children.
3. You officially work and pay income tax. At its core, a tax deduction is the portion of income that is not subject to tax. Therefore, you cannot get back more money than you transferred to the income tax budget. This is about 13% of the official salary. If you do not officially work and do not pay income tax, then you will not be able to take advantage of the deduction.
Amount of tax deduction for life insurance
The amount of tax deduction for life insurance is calculated for the calendar year and is determined by the following factors:
1. You can return up to 13% of the costs of insurance premiums , but not more than 15,600 rubles . This is due to the restriction on the maximum deduction amount of 120,000 rubles (120,000 rubles * 13% = 15,600 rubles).
Example : In 2021 Savelyev O.A. entered into a life insurance agreement with an insurance company for 5 years. In 2020, the amount of insurance premiums was 75,000 rubles. For 2021 Savelyev O.A. earned 400,000 rubles and paid income tax of 52,000 rubles. Thus, for 2021 he will be able to return 9,750 rubles (75,000 * 13%).
Moreover, the limit of 15,600 rubles applies not only to the deduction for life insurance, but to all social deductions. The amount of all social deductions (training, treatment, medicines, pension contributions) should not exceed 120 thousand rubles, that is, you can return a maximum of 15,600 rubles for all deductions. In other words, the maximum limit of 120,000 rubles limits the total aggregate amount of all types of social deductions.
Example : In 2021 Belkina A.A. entered into a life insurance agreement with an insurance company for a period of 5 years. In 2020, she paid insurance premiums in the amount of 45,000 rubles. Also in 2021 Belkina A.A. paid for her own training in the amount of 100,000 rubles. For 2021 Belkina A.A. earned 600,000 rubles and paid income tax of 78,000 rubles. Since in total for all types of social deductions the maximum limit is 120,000 rubles, then Belkin A.A. will be able to claim only 120,000 rubles. Thus, for 2021 she will be able to return 15,600 rubles (120,000 * 13%).
2. You cannot get back more money than you transferred to the income tax budget (about 13% of the official salary).
Example : In 2021 Zaitseva O.A. entered into a life insurance agreement with an insurance company for 5 years. In 2020, the amount of insurance premiums was 60,000 rubles. In 2021 Zaitseva O.A. worked for one month (due to maternity leave), and her salary was 40,000 rubles, from which 5,200 rubles of income tax were withheld. Thus, for 2020, O.A. Zaitseva will be able to return only 5,200 rubles (40,000 * 13%) despite the fact that insurance premiums were paid in the amount of 60,000 rubles. The balance of the tax deduction cannot be carried forward to subsequent years and will expire.
3. Receiving a deduction is possible only for life insurance premiums. When concluding a combined contract, which includes, in addition to voluntary life insurance and insurance against accidents and illnesses, a social tax deduction in accordance with paragraphs. 4 paragraphs 1 art. 219 of the Tax Code of the Russian Federation can be provided under such an agreement only in the amount of insurance premiums related to voluntary life insurance. More details below.
Is it possible to get a deduction for insurance when lending?
When applying for a mortgage, one of the conditions of the lending bank is often the conclusion of a mixed insurance agreement, including insurance of life, health, and property interests for the period of repayment of the mortgage. According to paragraph 4 of paragraph 1 of Article 219 of the Tax Code of the Russian Federation, when paying premiums under a life insurance contract (if it is concluded for a period of 5 years or more), you can receive a tax deduction. In this regard, the question arose: is it possible to receive a deduction in such a case? Some taxpayers have even already received a deduction for life insurance costs under such contracts.
However, the Ministry of Finance of the Russian Federation in its letter dated August 17, 2016 N 03-04-05/48235 clarified that when concluding this type of agreement, the deduction cannot be used, since the beneficiary is the bank, and not the persons who paid the insurance premiums.
Example: In 2021 Novikov A.V. To purchase an apartment, a mortgage loan agreement was drawn up, and at the request of the creditor bank, a mixed insurance agreement was concluded, including life insurance, health insurance, property interests and title insurance. Due to the fact that, in accordance with the terms of the insurance contract, the beneficiary of the amount of the insurance payment is the bank, receive a tax deduction for life insurance expenses Novikov A.V. can not.
Restrictions on mixed insurance contracts when obtaining loans
In recent years, mortgage loans have become very popular - the only way for many Russians to improve their living conditions. According to the rules of financial institutions, when concluding a mortgage agreement, it is proposed to take out mixed insurance. In this case, the life and health of the person being credited is subject to insurance, and property interests are also protected.
Despite the fact that many Russians have already received compensation for tax deductions under such agreements, they cannot claim this according to the law.
Experts explain this by saying that the benefit in this case is received not by the insured citizen, but by the bank, so the state will not compensate for the insurance.
Documents required to apply for a tax deduction for life insurance
The Tax Code of the Russian Federation does not provide a list of these documents. However, they can be identified based on the available explanations from regulatory authorities:
- declaration 3-NDFL;
- voluntary life insurance contract;
- payment documents confirming payment of insurance premiums;
- documents confirming the paid income tax (certificate 2-NDFL).
You can view the full list of documents here: Documents for tax deductions for life insurance
Procedure for receiving a deduction
A taxpayer has the right to apply for START:
1. To the tax authorities at the place of residence (electronically through the portal of the Federal Tax Service or State Services, through Russian Post).
- declaration in form 3-NDFL (in addition to the deduction amount, the form must include information from the certificate of income and the amount of accrued and withheld tax received from the employer, and the certificate itself must be attached to the declaration);
Note:
1. Currently, a certificate in form 2-NDFL for past tax periods can be obtained through the Federal Tax Service portal (State Services) without contacting the employer.
2. Copies of the following documents are attached to the declaration as attachments, and the originals are presented to the inspector only for verification and remain in the hands of the taxpayer.
3. Citizens who submit a declaration solely for the purpose of obtaining a deduction (i.e.
e. are not required to independently declare their income), are not tied to the reporting deadlines established by the Tax Code of the Russian Federation.
At the same time, you need to remember that you can apply for START no later than 3 years from the end of the tax period in which the right to a deduction arose (for example: you need to claim a deduction for expenses on insurance premiums paid in 2021 no later than 2021).
- insurance contract with additional agreements to it (insurance policy);
- payment documents confirming payment of the insurance premium (contributions under the contract): checks, statements, receipts;
- a document confirming the degree of relationship of the applicant with the family member for whom the insurance is issued (birth (adoption) certificate of the child, act establishing guardianship of the child, birth certificate of the taxpayer himself, marriage certificate);
- death certificate of the policyholder spouse (if necessary);
- application for a personal income tax refund in the form approved by order of the Federal Tax Service of Russia dated February 14, 2017 No. ММВ-7-8/ (Appendix No. 8).
The tax office must check the submitted documents and make a decision within a period not exceeding 3 months from the date of receipt of the declaration. If everything is in order with the documentation, then the funds will be transferred at a time to the taxpayer’s personal account specified in the personal income tax refund application within 30 days.
2. To the employer , having previously confirmed the right to a deduction with the inspectorate.
List of documents to apply to the Federal Tax Service:
- application for receipt of notification in the recommended form given in the letter of the Federal Tax Service of Russia dated January 16, 2017 No. BS-4-11/[email protected];
- the documents listed in the previous paragraph confirming the right to deduction (the 3-NDFL declaration is not submitted).
After 30 days, the tax authority will issue a notice of eligibility for START.
List of documents for the employer:
- application for the provision of strategic offensive arms in any form;
- notification of the right to apply a deduction received from the Federal Tax Service.
Expert opinion
Stepanov Vladislav Vasilievich
Practitioner lawyer with 10 years of experience. Specializes in the field of civil law. Member of the Bar Association.
The employer does not return the money to the employee, but gives him wages taking into account the deduction (that is, he does not withhold personal income tax in the amount of 13%) from the month following the month of filing the application.
When and for what period can I receive a tax deduction?
You can only get your life insurance money back for those years in which you directly paid the premiums . Let us note that the right to deduct the amount of insurance premiums under voluntary life insurance contracts has been granted to taxpayers since January 1, 2015 (clause 4, clause 1, article 219 of the Tax Code of the Russian Federation).
However, you can submit a declaration and return the money only in the year following the year of payment . For example, if you paid insurance premiums in 2021, you can return the money in 2021.
Conditions for obtaining START
You can take advantage of the deduction if certain conditions are met:
1. A citizen must have official income subject to personal income tax at a rate of 13% in the year in which he paid the insurance premium.
It should be understood that a deduction is a refund (not a withholding) of tax that has already been paid (to be paid in the near future) to the state on the income of an individual. If a citizen does not have such income, then he is not entitled to a deduction.
In this case, income means not only wages, but also other sources of income. For example: renting out housing.
Note: No deductions apply to dividend income.
Accordingly, if the pensioner’s only source of income in the year in which he paid for life insurance is a pension, which is legally exempt from personal income tax, there can be no talk of any deduction. But his employed spouse or child has the right to declare START.
2. The insurance company must have a license to carry out the relevant type of insurance activity.
3. The life insurance contract must be concluded for a period of at least 5 years and contain the following essential conditions:
- information about the insured person;
- the amount of the insured amount;
- information about the nature of the insured event.
4. The beneficiary under the contract must be the insured person himself or his immediate relatives (heirs): parent (adoptive parent), spouse, child.
Often, insurers offer clients to enter into a comprehensive (combined) contract, which, in addition to basic life insurance (in case of death, survival to a certain age), may include additional services:
- insurance against accidents, deadly diseases, harm to health, loss of legal capacity;
- provision of medical and emergency assistance outside the Russian Federation, etc.
In such a situation, it is necessary that the part of the insurance premium paid for voluntary life insurance be allocated as a separate amount. Otherwise, it will be impossible to take advantage of the deduction.
START can also be declared under agreements concluded earlier than in Art. 219 of the Tax Code of the Russian Federation was introduced subsection. 4 clause 1 on the application of social deductions in relation to expenses for voluntary life insurance (this provision came into force in 2015).
