Social tax deduction for personal income tax: what is it and how to get it - maximum amount

Legislative regulation of the provision of social tax deductions

Social tax deductions for personal income tax can be obtained at the end of the tax period (one year). The procedure for their registration involves documentary support.
The citizen will need to provide a tax return with documents confirming expenses to the tax authority or to the employer. Such compensation from the state is provided in the amount of actual costs, but is limited to a maximum amount of 120,000 rubles. A person expecting to receive them must decide on the type of expenses if there were several expenses.

Important! Refunds are not carried over to the next reporting period. If the tax paid for the year is not enough, the remaining amount will be lost.

This type of government compensation provides exemption from income tax on a certain amount of money. Receiving them is not limited to the number of times. You can submit documents for transfers every year if the conditions provided by law are met.

In the regulatory framework, this possibility is provided for in Article 219 of the Tax Code of the Russian Federation. This provision fully regulates the procedure for providing payments, conditions and methods of transfer.

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Tax Code of the Russian Federation (part two) dated 08/05/2000 N 117-FZ (as amended on 04/03/2017) (with amendments and additions, entered into force on 05/04/2017)

Sample application for tax deduction for treatment

What social deductions for personal income tax do employers provide?

The employer can provide the employee with the following social deductions (clauses 2 – 5, clause 1, clause 2, article 219 of the Tax Code of the Russian Federation):

• for education;
• for treatment, including expensive ones, as well as the purchase of medicines;
• for non-state pension provision, voluntary pension insurance and voluntary life insurance;
• to pay additional insurance contributions for a funded pension.

The employer does not have the right to provide deductions for donations and expenses for undergoing an independent qualification assessment; this is done by the tax authority when the taxpayer submits a declaration at the end of the year (clause 2 of Article 219 of the Tax Code of the Russian Federation).

Who is eligible to receive the deduction?

The following persons are entitled to receive this bonus from the state:

• taxpayers - officially employed persons for whom the organization pays income tax;
• unemployed pensioners for treatment expenses. In such situations, the recipient of the deduction will be officially working children.

Thus, for this compensation to be calculated, a citizen must be officially employed. There are two ways to transfer: a refund of the tax paid and an exemption from it for a certain period.

Advice! In the second case, the deduction can be obtained before the end of the calendar year by submitting the necessary documents to the management of the enterprise. In this case, the person will receive an increased salary in exchange for a lump sum payment.

How to provide an employee with a social deduction for life insurance

General rules apply to determine the amount of deduction. That is, the deduction is provided in the amount of expenses actually incurred, but not more than 120,000 rubles. for the year (clause 4, clause 1, clause 2, article 219 of the Tax Code of the Russian Federation).

Important: if an individual claims deductions for different reasons during the year, it is necessary to check their total amount. If the amount of deductions exceeds the limit of RUB 120,000. for the year, then the employee independently chooses which of the deductions he will claim in a smaller amount (Article 216, paragraph 4, paragraph 1, paragraph 2, Article 219 of the Tax Code of the Russian Federation).

A social deduction under a life insurance contract can be provided by the employer or the tax authority (clause 4, clause 1, clause 2, article 219 of the Tax Code of the Russian Federation).

In order for the employer to provide a deduction, you need to receive the following documents from the employee:

• a written statement in any form;
• notification from the inspectorate confirming the right to deduction.

The employer provides the employee with such a deduction in the general manner.

Classification by expenses

Article 219 of the Tax Code of the Russian Federation regulates the possibility of obtaining a refund for expenses incurred on:

• education;
• treatment;
• charitable expenses;
• expenses for the formation of pension provision.

All compensation is of a declarative nature. To obtain them, a citizen must submit a package of documents to the Federal Tax Service or to the employer. Otherwise, the opportunity will be missed.

For charity and donations

Refund of personal income tax for expenses for charitable purposes is specified in paragraphs.
1 clause 1 art. 219 of the Tax Code of the Russian Federation. In this case, the tax base can be reduced by the actual amount, but not more than a quarter of the income for one year. Charitable payments can be made to:

• charitable organizations;
• socially oriented non-profit organizations;
• non-profit organization in the field of science, culture, sports, education, healthcare;
• religious organizations, non-profit organizations for the formation of endowment capital.

At the same time, when donating to state, municipal institutions in the field of culture and non-profit organizations to form endowment capital, the social deduction can reach up to 30% of the amount of income for the year, and at the regional level a different maximum deduction amount can be established.

When transferring funds to charitable needs, the taxpayer should not receive any compensation from the organization in return. A donation is free of charge.

To receive this compensation, you must fill out a 3-NDFL declaration and attach the following documentation to it:

• confirmation of expenses incurred, for example, receipts, checks;
• letters from charities asking for donations;
• certificate 2-NDFL for the annual period.

Note!
You can receive this type of payment only from the Federal Tax Service. The declaration is filled out by contacting the Federal Tax Service directly, or through the Internet service “Taxpayer Personal Account”. Personal income tax refund is not provided in the following cases:

• the money was transferred to the fund, and not directly to the institution;
• the payer had a vested interest in making the donation;
• the recipient of the funds was an individual.

Charitable assistance must be expressed in monetary terms.

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Sample 3-NDFL

Form 3-NDFL

To pay for training

Tax refunds on training expenses are regulated by paragraphs. 2 p. 1 art. 219 of the Tax Code of the Russian Federation. The payer can receive funds in the following situations:

• when paying for your own training in the amount of actually incurred training expenses, but in total no more than 120,000.00 rubles in the tax period;
• when paying for the education of your children who have not reached the age of 24 years in the amount of actual educational expenses incurred, but not more than 50,000.00 rubles for each child;
• with expenses for the education of a brother or sister in the amount of actual educational expenses incurred, but not more than 50,000.00 rubles for each child.

If a person plans to receive a deduction for expenses not for personal needs, the form of training is important. Thus, the state only reimburses expenses for the education of family members who are enrolled in full-time education.

The type of educational institution does not matter. This could be a university, a sports section, an art school, or a driving school.

Personal income tax compensation is not provided in the following cases:

• the educational institution is not accredited by the state;
• The costs of the educational process were borne by the employer.

Attention! Also, the payment will not be provided if the payer has spent maternity capital.

Treatment costs

To receive compensation from the Federal Tax Service of this type, the amount can include expenses for treatment, purchase of medications or devices.
This procedure is regulated by paragraphs. 3 p. 1 art. 219 of the Tax Code of the Russian Federation. The payer can spend money in the amount of actual training expenses incurred, but in total no more than 120,000.00 rubles in the tax period for his own treatment or:

• spouse;
• a minor son or daughter (including adopted children, wards under the age of 18);
• parents.

To accrue a tax bonus, a medical institution must undergo a licensing procedure to provide such services. This rule also applies to non-governmental medical organizations.

Separately, it is worth considering the social deduction for paying for expensive treatment (paragraph 5, paragraph 6, paragraph 3, paragraph 1, Article 219 of the Tax Code of the Russian Federation). Such a deduction is provided in the amount of actual expenses incurred for expensive types of treatment according to the list approved by Decree of the Government of the Russian Federation of March 19, 2001 No. 201.

For funded pension provision or voluntary pension insurance

This purpose of spending is regulated by paragraphs.
4, pp. 5 p. 1 art. 219 of the Tax Code of the Russian Federation. Payment is provided only in cases where the payer contributes money to the funded part of the pension in excess of what the company paid for it. A refund is also provided in the amount of actually incurred training expenses, but in total no more than 120,000.00 rubles in the tax period from the following transfers:

1. for voluntary life insurance. The agreement with the organization must be signed for 5 years or more;
2. for pension supplementary insurance;
3. transfer of money to any non-state pension fund.

The payer must keep supporting documents, as well as agreements with organizations.

Deduction from the amount paid for treatment and medications

The taxpayer has the right to receive a social tax deduction for amounts paid for treatment services in medical organizations in Russia or from a private practitioner (determination of the Constitutional Court of the Russian Federation of December 14, 2004 N 447-O). The deduction is provided for medical expenses not only of the taxpayer, but of the spouse, their parents and children under the age of 18. This tax deduction also applies to expenses for the purchase of medicines. But medical services and medicines must be named in the lists approved by Decree of the Government of the Russian Federation dated March 19, 2001 N 201. In particular, such medical services include: diagnostic and treatment services in the provision of emergency medical care; services for diagnosis, prevention, treatment and medical rehabilitation in the provision of outpatient or inpatient medical care.

A social tax deduction can also be received in respect of insurance premiums paid by the taxpayer under voluntary health insurance contracts if treatment is carried out in medical institutions that have the appropriate licenses to carry out medical activities.

The social tax deduction for expenses on expensive treatment has a special status: it is accepted in the amount of actual expenses incurred , without any restrictions. At the same time, the list of types of expensive treatment is also determined by Decree of the Government of the Russian Federation N 201 .

Social tax deduction

In 2021, the size of the tax bonus for individuals, as well as the purposes of spending for the provision, were regulated by the Government of the Russian Federation.
The issue has been agreed upon with the relevant ministries and departments. Note! From January 1, 2017, the payer has the right to apply to the employer, who pays personal income tax to the budget for him, for the provision of social tax compensation. Previously, this possibility did not exist. In this case, the payment will not be provided in a lump sum, but by increasing wages by the tax rate during the period until the allotted funds are exhausted.

How to provide an employee with a social deduction for training

The employer provides the employee with a social deduction for training in the general manner.

What documents are needed to provide a deduction for education?

To receive a deduction from the employer, the employee must provide him with the following documents:

• a written statement in any form;
• notification of confirmation of the right to deduction.

Amount of tax deduction for training

A social deduction for training is provided to an individual in the amount of expenses actually incurred for such training, but not more than the established limits. There are two deduction limits:

• for your own training, as well as training for your brother (sister) - 120,000 rubles. for the year (clause 2, clause 1, clause 2, article 219 of the Tax Code of the Russian Federation);
• for the education of a child or ward - 50,000 rubles. for a child for both parents (clause 2, clause 1, article 219 of the Tax Code of the Russian Federation).

Important: if an individual claims deductions for different reasons during the year, it is necessary to check their total amount. If the amount of deductions exceeds the limit, then the employee independently chooses which of the deductions will be declared in a smaller amount (Article 216, paragraph 2, paragraph 1, paragraph 2, Article 219 of the Tax Code of the Russian Federation).

Where to apply for registration

To receive a social refund of personal income tax, you can contact the Federal Tax Service or your employer. The delivery method will depend on the path chosen.
You need to contact the Federal Tax Service at the end of the calendar year during which the expenses were made. The package of papers will depend on the purpose of spending the money. In most cases, the following documents are required:

• applicant's passport;
• declaration 3-NDFL;
• certificate 2-NDFL;
• statement;
• payment documents confirming expenses;
• agreement with the institution;
• certificate of provision of medical services.

After submitting the documentation, you must wait for the inspection's decision. The money will be transferred to the applicant's bank account.

To provide this payment through an employer you must:

• write an application to the Federal Tax Service to confirm the right to a refund;
• pick up a notice from the Federal Tax Service;
• fill out an application to your employer to receive funds.

Personal income tax will no longer be withheld from the taxpayer’s salary. Every citizen of the Russian Federation has the right to independently choose the method of providing this bonus.

Statement

The application must indicate:

• information about the authority to which the application is submitted;
• information about the applicant;
• address, telephone number and TIN of the applicant;
• a request for provision indicating the specific purpose of the expenditure;
• bank account details;
• date and signature.

The collected documents are attached to the application. It will be considered for about a month.

How to apply for a social deduction: documents and procedure

To receive a deduction under the first scheme, you need to submit a special package of documents to the Federal Tax Service. It (in general) includes:

• 2-NDFL certificate of income for the year of expenses;
• declaration 3-NDFL for the corresponding year;
• copies of documents confirming expenses (for example, checks, payment receipts, service agreements);
• documents confirming relationship, if expenses were incurred for relatives;
• application for tax refund (form KND 1150058).

Over the next 4 months, the Federal Tax Service, if everything is in order with the documents, will transfer the money to the account specified in the application.

Deduction amounts

This payment is provided within the limits of the taxpayer's expenses.
But in most cases the legislation sets a limit of 120,000 rubles for it. The exception is:

• transfers for the education of a son or daughter - 50,000 rubles;
• expenses for treatment recognized as expensive - without restrictions;
• charity - a quarter of a person's income for a year or less.

Treatment is considered expensive if this is indicated in the corresponding list of the Ministry of Health.

Calculation example

The citizen’s annual income was 850,000 rubles. At the same time he spent:

• 140,000 rub. for your own education, 120,000 rubles will be taken into account;
• 15,000 rub. for my son to attend the sports section;
• 45,000 rub. for treatment.

With the exception of expenses for personal education, all monetary transfers are subject to the maximum limit. To determine the amount of payment it is necessary to make calculations:

120000+15000+45000=180000 rub.

You can get a refund from the funds paid:

180000×13%=23400 rub.

In what order does the employer provide social deductions?

The employer provides social deductions starting from the month in which the employee submitted the application and all the necessary documents (clause 2 of Article 219 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated May 18, 2012 N 03-04-06/7-140).

To do this, when calculating personal income tax, the employer needs to monthly reduce the employee’s income, taxed at a rate of 13%, by the corresponding deduction amount. That is, taking into account the social deduction, the employee will be charged a smaller amount of tax. This follows from paragraph 3 of Art. 210 Tax Code of the Russian Federation.

The last month for calculating deductions is December or the month in which the deduction is taken into account in full. If the amount of deductions turned out to be more than the amount of income for the year, the balance of deductions cannot be carried over to the next year (clause 3 of Article 210 of the Tax Code of the Russian Federation, Letters of the Ministry of Finance of Russia dated March 20, 2018 N 03-04-05/17128, dated March 22, 2017 N 03- 04-05/16332, Federal Tax Service of Russia dated 08/16/2012 N ED-4-3/).

Important: the employer can provide a social deduction for expenses on non-state pension provision, voluntary pension insurance and the payment of additional insurance contributions for a funded pension only for the amounts that he withheld from payments in favor of the employee and transferred to the relevant funds and (or) insurance organizations (p 2 Article 219 of the Tax Code of the Russian Federation).

For example, if an employer withheld contributions from wages in May and transferred them to the fund in June, then the deduction can be provided to the employee only in June (Letter of the Ministry of Finance of Russia dated July 26, 2013 N 03-04-06/29828).

Period for providing deductions

Provide the deduction starting from the month in which the employee wrote the application and brought the notification to the accounting department. If, by mistake, personal income tax for this month was nevertheless withheld, it must be returned or offset.

Provide a deduction in relation to all income that the employee has received since the beginning of the year (on an accrual basis). For example, if an employee brought a notice in May, provide a deduction taking into account income for January–May. This conclusion follows from the letter of the Ministry of Finance of Russia dated September 7, 2015 No. 03-04-05/51303. And although this letter is about a property deduction, it can also be applied to a social one: the rules for providing these deductions are similar, which means the approach should be uniform.

Stop providing the deduction in the month in which the amount is fully spent. If an employee receives several social benefits, stop providing them in the month when one of the following events occurs:

• the entire deduction amount has been spent;

• The total deduction limit has been used.

This procedure is provided for in paragraphs 3–5 and 7 of paragraph 2 of Article 219 of the Tax Code of the Russian Federation.

If the entire deduction has not been exhausted by the end of the year, then provide it for the last time in December of this year. Do not carry over the unspent balance to the next year. An employee can choose to fully deduct in two ways:

• or through the tax office;

• or again through the employer. But to do this, he will have to receive a new tax notice from the inspectorate for the next year.

This follows from the provisions of paragraphs 3–5 and 7 of paragraph 2 of Article 219 of the Tax Code of the Russian Federation.

An example of providing social deductions for two tax notices

P.A. Bespalov has been working in the organization since March 3, 2021. His salary is 100,000 rubles. per month. When applying for a job, he presented a certificate in form 2-NDFL from his previous place of work, from which it follows that all the standard tax deductions due to Bespalov in 2021 were provided to him.

On April 1, 2021, Bespalov spent 50,000 rubles on his daughter’s education. To receive a deduction from the employer, Bespalov applied for notification to the tax office at his place of residence. The inspection confirmed his right to a deduction for training expenses in 2021 in the amount of 50,000 rubles. The notice was issued on June 16, 2021.

On June 10, 2021, Bespalov paid for his mother’s treatment in the amount of 650,000 rubles. And again he turned to his tax office for notification. On July 1, the inspection issued him a document that confirms Bespalov’s right to a deduction in 2021 for treatment expenses in the following amounts:

• 50,000 rub. – on expenses for payment of medical services. When providing social deductions, the amount of such expenses is limited to a total amount of 120,000 rubles;

• 600,000 rub. – on the cost of expensive treatment. When providing social deductions, the amount of such expenses is not limited.

On June 18, 2021, Bespalov submitted to the accounting department:

• an application requesting a social tax deduction for education;

• notification from the tax office confirming his right to deduction.

Based on these documents, the organization provided Bespalov with a social deduction for training. The deduction is provided from June, but applies to the entire amount of income received by the employee from the beginning of work in the organization.

On July 10, 2021, Bespalov submitted to the accounting department:

• an application requesting a social tax deduction for treatment;

• notification from the tax office confirming his right to deduction.

The accountant checked whether the total amount of deductions declared by Bespalov corresponded to the limit of 120,000 rubles. The deduction for training (50,000 rubles) and the deduction for treatment, which is subject to the restriction (50,000 rubles), total less than 120,000 rubles. Therefore, the organization can provide the employee with a deduction for the amount of actual expenses (RUB 100,000).

A deduction for treatment is due to Bespalov starting in July, but in relation to the entire amount of income received by the employee from the beginning of work in the organization.

The procedure for determining the tax base and the amount of personal income tax, taking into account the deductions provided to Bespalov, is presented in the table:

The tuition deduction has been used in full. But there is no deduction for treatment. The unused balance amounted to 50,000 rubles. (650,000 rub. – 600,000 rub.). This remainder of Bespalov can:

• transfer to 2021 and obtain it from the employer. To do this, he must submit a new tax notice to the organization;

• receive through the tax office (if in 2021 he had additional income to which the deduction can be applied). To do this, he must submit a declaration to the inspectorate in form 3-NDFL.

Possibility of transferring deductions

Social deductions that are not fully used are not carried over to the next year. For example, if in the current year a person spent more than 120,000 rubles on additional pension contributions (together with other expenses), then the excess will not reduce his taxable income either this year or next. There is no mechanism for transferring the unused balance of social deductions to the next year in the Tax Code of the Russian Federation. This follows from Article 219 of the Tax Code of the Russian Federation. A similar point of view is reflected in the letter of the Federal Tax Service of Russia dated August 16, 2012 No. ED-4-3/13603.

What documents are needed

To provide an employee with a social deduction for treatment or training, receive from him:

• notification from the tax office. Make sure it is addressed specifically to your organization. Otherwise, a deduction cannot be provided;

• application to the accounting department.

This procedure is provided for in paragraph 2 of paragraph 2 of Article 219 of the Tax Code of the Russian Federation.

Tax notice

The notification form was approved by order of the Federal Tax Service of Russia dated October 27, 2015 No. ММВ-7-11/473. In one notification, the tax office can confirm the right to several types of social deductions at once. This document is valid only until the end of the year in which it was issued.

When issuing a notification, the inspectorate is not obliged to put its official seal on it (letter of the Federal Tax Service of Russia dated October 27, 2015 No. BS-4-11/18740).

To receive a notification, an employee must submit to the inspectorate:

• application in the form recommended in the letter of the Federal Tax Service of Russia dated December 7, 2015 No. ZN-4-11/21381;

• documents that confirm the right to deduction.

For more information, see:

• Who and under what conditions can receive a social tax deduction for treatment;

• How to get a social tax deduction for education.

Statement from an employee

There is no standard deduction application form. Therefore, an organization can develop its own template, or it can accept applications from employees in any form.

How long should documents be kept?

Keep the employee's tax notice and application for four years. This requirement is common to all documents that confirm that the tax was withheld correctly (subclause 8, clause 1, article 23 of the Tax Code of the Russian Federation and letter of the Ministry of Finance of Russia dated September 7, 2011 No. 03-04-06/4-209).

How to get

To exercise the right to deduction, there are two options for completing documents:

1. At the end of the year, contact the territorial Federal Tax Service, where, after a desk audit, the money will be returned to him.
2. Immediately when the corresponding costs appear, start receiving benefits at work.

The employee has the right to independently choose how to return the money.

The first method is the only one if the money was spent on charity and qualification assessment. In other cases, you can also take advantage of the benefit in a second way, without waiting for the end of the year.

At the tax office

If you decide to go to the Federal Tax Service:

1. Fill out the 3-NDFL declaration. You may need the original 2-NDFL certificate, which you need to take from the accounting department at work.
2. Prepare a set of documents for each type of benefit.
3. They take all this to the tax authorities.

In the case where the declaration states that the amount must be returned from the budget, you can immediately fill out and submit an application for a refund of the overpaid money. You can also write it after checking the declaration, i.e. in 3 months.

The application form was approved by order of the Federal Tax Service of the Russian Federation dated February 14, 2017 No. ММВ-7-8/ [email protected] From 2021, its new version is used.

The form consists of 3 sheets. Fill out the first two, where the data of the individual and his bank details are recorded, the third - if the TIN is not specified, then passport data will be required. All three sheets are sent to the tax office, regardless of their content.

You can fill out the form by hand or on a computer. The signature must be personally made by the taxpayer and only on the title page.

Money from the state budget will be transferred to the account within a month from the date of submission of the application, but not before a desk audit is carried out (letter of the Ministry of Finance dated November 9, 2016 No. 03-02-08/65564).

Attention! You need to bring copies and originals of documents to the tax office. The inspector will verify the accuracy of the papers and return the originals, keeping copies for himself.

Get the right from your employer

You can arrange everything immediately after socially significant expenses appear, for example, after concluding an agreement for children’s education. The actions will be as follows:

1. Collect documents that provide benefits.
2. Write an application for notification from the tax office about the right to deduction and send it, along with the documents, to the Federal Tax Service at your place of residence.
3. After a month, receive a notice and take it to your employer along with your application.

Notification screen

Starting from the month of submitting the application in his company, the employer will begin to provide a benefit in the form of a reduction in income tax withheld from the salary.

Example of calculating the deduction amount

The calculation mechanism is easiest to understand with an example. Of course, a program can do this, but it is important to understand it.

Let’s take, for example, receiving a social tax deduction for paying for education.

So, the working employee Ivanov I.I. has a secondary specialized education. However, to be promoted, he needs to have a higher education. To receive it, he entered a university that has state accreditation.

• The cost of training was 50 thousand rubles annually.
• The employee’s earnings are 30 thousand rubles per month, that is, 360 thousand per year.
• For the year, his employer, as an agent, transferred 46.8 thousand rubles to the personal income tax of employee Ivanov I.I.
• The law limits the maximum amount with which you can receive social deductions to 120 thousand rubles. The maximum deduction amount will be 15.6 thousand rubles.
• Paying 50 thousand a year, Ivanov received the right to 6.5 thousand rubles of deduction: 50,000 × 13% = 6,500 .

If Ivanov I.I decided to pay for all 3 years of study, he would have spent 15,000 at once, which would have exceeded the maximum threshold, which means it would still be calculated from 12,000 rubles.

He would be able to receive only 15,600 thousand rubles , which means that he would lose 3,900 rubles of the difference.

The deduction for treatment and the purchase of medicines is calculated in a similar way.

You can also easily calculate the property deduction for the purchase of an apartment.

So, a social deduction is compensation for expenses incurred by the taxpayer, provided by the state by reducing the tax base. No changes are expected in this area, and the benefit will also be provided in 2021.

Who is eligible for the deduction?

Any social deductions can be provided only to resident employees and only on income that is subject to personal income tax at a rate of 13 percent, except for dividends.

This procedure is provided for in paragraphs 3 and 4 of Article 210 of the Tax Code of the Russian Federation.

Employees can work in an organization under both labor and civil law contracts (CLA). Or they can simultaneously receive income under both agreements. This has implications for the provision of deductions.

Civil contract

The organization does not have the right to provide a deduction to an employee who works only under the GPA. The law clearly states that only employers can give deductions. This means that the deduction can be provided only to those employees who work in the organization under employment contracts.

This follows from paragraph 2 of paragraph 2 of Article 219 of the Tax Code of the Russian Federation.

Combining an employment contract and GPA

An employee who simultaneously works under an employment contract and under a civil law contract can be provided with a deduction. Moreover, in relation to the total amount of income received under both contracts.

This follows from paragraph 3 of Article 210 and paragraph 2 of paragraph 2 of Article 219 of the Tax Code of the Russian Federation.