For what expenses you can get a tax deduction. Why can I return income tax? Legal advice
Individual income tax applies to every working citizen of Russia. The law provides for tax deductions that reduce the tax burden.
Due to this, in some cases, tax refunds can be made. Citizens have the right to do this if they spent money on education, treatment, insurance, and purchased an apartment, house, or other housing. We’ll tell you what you need to do to get money from the budget and for which you can return the income tax.
Who is eligible for personal income tax return
Any citizen of Russia who has an income from which income tax is withheld at a rate of 13% can count on a return. Such a requirement is contained in the Tax Code of the Russian Federation. If there was no earnings in the current year, then the income tax return for this period cannot be done.
An exception to this rule is made only for pensioners regarding property deduction. If a citizen bought an apartment or other housing while retired, he can receive personal income tax compensation for previous years. The maximum period in this case is 3 years preceding the year of purchase of housing.
A social tax deduction on expenses for treatment, medicines, voluntary personal insurance can be obtained not only if paid for themselves, but also for immediate relatives: spouse, children and parents. For deduction, the expenses on own education, on the education of children, brothers or sisters are also taken into account.
Why can I return income tax
Personal income tax refund is possible in connection with the use of property and social deductions. These deductions are limited to certain amounts, and in some cases, time frames. We will figure out how much you can count on in each case.
Provided that you spent money this year on social needs, you can return personal income tax from the budget:
- 15 600 rubles., That is 13% of 120 thousand rubles. - the maximum amount of deduction, if paid for treatment, tuition, for voluntary insurance, additional pension contributions. If the total amount of such expenses for the year exceeded 120 thousand rubles, then the taxpayer must choose what expenses to use the deduction to fit into this amount;
- 6 500 rub. - 13% of the maximum deduction of 50 thousand rubles if paid for the education of children. This amount can be calculated when paying for the education of each child;
- 13% tax of 25% of taxable income for the year - if you spent money on charity;
- 13% of the full amount of expenses - if spent on expensive treatment. The types of expensive treatment are listed in a special list, which is approved by the Decree of the Government of the Russian Federation.
All these deductions are allowed to be applied only to the income of the year in which the corresponding expenses were incurred. The rest of the unused amount of the social deduction cannot be carried forward.
Example 1Kozyreva Vera Petrovna in 2017 paid for expensive treatment, delivered dental implants. The amount left by Vera Petrovna at the dentist amounted to 360 thousand rubles. Expenses for expensive treatment can be taken for deduction without limiting the amount, therefore Kozyreva V.P. could count on income tax reimbursement in the amount of 46,800 rubles. (13% of 360 thousand rubles).
But Vera Petrovna only in July 2017 left maternity leave and her earnings for six months amounted to 210 thousand rubles. Income tax withheld from this amount 27,300 rubles. That is how much Vera Petrovna can get back. The rest of the deduction in the amount of 19.5 thousand rubles. for 2018 is not postponed.
The same rule also works when taxable income is completely absent.
Example 2 Pensioner Viktor Skorodumov paid 120 thousand rubles for the treatment and prosthetics of the teeth. Viktor Nikolaevich has no other income besides his pension. In such a situation, deduction to Skorodumov V.N. not laid. Pensions are exempt from taxation, that is, personal income tax is not accrued and is not paid to the budget. There is no taxable income, there is nothing to compensate for personal income tax, and therefore the deduction is not applicable.
When acquiring housing, including with borrowed funds (in a mortgage), property deductions are provided. From the budget you can return:
- 13% of the maximum possible deduction of 2 million rubles, that is 260 thousand rubles. in relation to acquisition costs;
- 390 thousand rubles - 13% of the deduction provided for the interest paid on the mortgage in the amount of not more than 3 million rubles.
The deduction on expenses for the purchase of housing can be used for several objects until the full possible amount is received - 260 thousand rubles. But the interest deduction, unfortunately, is allowed by law to be applied only to one object. That is, if interest was paid to the bank in an amount less than 3 million rubles, the balance of the deduction for another facility cannot be received.
Property deductions, unlike social deductions, can be carried forward. Here, if now there is no income, then the deduction can be used in the future, when the income appears. The right to return personal income tax does not disappear. In addition, the law provides for retirees the opportunity to receive income tax return for the previous three years.
Example 3 Viktor Andreyevich Rybakov retired in 2018. In the same year, he bought a small house in the village and took ownership of it. Viktor Andreevich consulted with the tax office and found out how to return the income tax. He submitted income statements for 2015, 2016 and 2017, and he was returned from the budget the personal income tax paid for these years.
Ways to Refund Income Taxes
The tax can be returned in two ways:
- at the tax office;
Which way to choose? In order to receive immediately the entire amount within the tax withheld for the year, you need to contact the tax office. But you have to wait for the end of the year in which the event, giving the right to deduction.
You can get reimbursement at work without waiting for the end of the year. Accounting will calculate the salary taking into account the deduction after it receives from the employee a notice from the inspection and a corresponding application. In both cases, you need to submit the necessary documents to the tax office.
The procedure for the return of personal income tax at the tax office
At the end of the year we hand over to the inspection:
- tax return;
- certificate (to take at work);
- on the return of personal income tax (here you must specify the details of the bank card where the money will be transferred);
- documents proving expenses incurred. This includes contracts, receipts, checks. If you paid for treatment, you will need a certificate of payment for medical services, a copy of the license of the medical institution, a copy of the document confirming kinship, if you paid for a relative, etc. In each case, the list of required documents can be clarified by the tax office.
The tax authority has three months to verify documents. If everything is in order with the documents, then a month after the end of the check, you will be credited with the tax on the account indicated in the application.
The procedure for tax refund from salary at work
The advantage in this case is that personal income tax can be compensated immediately, without waiting for the end of the year. To do this, you need to include a notice of the right to deduction from the tax authority for work and write a corresponding application.
In order to receive a notice of the right to a deduction, submit an application for the issuance of a notice and documents proving expenses to the tax inspectorate. In a month, the tax office will issue a notice.
Note! For property and social deductions, different methods of personal income tax return at the place of work are used.
If a notice of the right to a property deduction was provided in the middle of the year or in any other month except January, the tax should be recalculated and returned for all months that have passed since the beginning of the year.
But when the deduction is associated with social expenses, then the tax from the beginning of the year is not recalculated. The social deduction will be involved in the calculation of salaries, starting from the month of submitting a notice to the accounting department. If, according to the results of the year, it turns out that the employee was not reimbursed the entire personal income tax withheld, then the balance of the social deduction can be obtained from the tax office by submitting a declaration.
Example 4 Kozakov Ilya Anatolevich in November brought to work a notice of the right to social deduction. The deduction amount is 110 thousand rubles. Salary Kozakova I.A. 40 thousand rubles In November and December, Ilya Anatolyevich will receive a deduction of 80 thousand rubles. That is, he will receive a salary in full, without withholding income tax. The rest of the deduction is 30 thousand rubles. (110 thousand rubles. - 80 thousand rubles.) Kozakov I.A. will receive by submitting a declaration of income at the end of the year. The tax inspectorate will return to him 13% of this amount - 3,900 rubles.
A situation is possible when in one year the right arises for both social and property deduction. What to do in this case? Of course, first of all, you need to use the social deduction, because it can not be transferred to next year, unlike property. This is possible even if at first they brought to work a notice of the right to a property deduction, and after a few months also a social one. The employer can independently determine the sequence of deductions. This is not prohibited by law.
Example 5 Vikhareva Lidiya Nikolaevna on March 15, 2017 submitted an application and a notice on the provision of property deduction of 1.7 million rubles to the accounting department at the place of work.
In May of the same year, Vikhareva L.N. brought a notice of the right to social deduction for paid treatment in the amount of 75 thousand rubles. Lidiya Nikolaevna's salary 45 thousand rubles. The accountant of the company figured out how to return personal income tax from wages Vikhareva L.N. the most profitable way so that the deductions are not lost.
From January to April Vikhareva L.N. A property deduction of 180 thousand rubles was provided. (45 thousand rubles. X 4 months), moreover, the personal income tax withheld in January and February was returned to Vikhareva’s card upon her request.
- In May, Lydia Nikolaevna was granted a social deduction of 45 thousand rubles.
- In June - the balance of the social deduction of 30 thousand rubles. and 15 thousand rubles. property deduction.
- From July to the end of the year, Vikhareva will receive a property deduction in the amount of 270 thousand rubles.
- The rest of the property deduction is 1 million 235 thousand rubles. (1.7 million rubles. - 180 thousand rubles. -15 thousand rubles. - 270 thousand rubles.) Vikhareva L.N. will be able to declare next year.
If she decides to do it again at work, she will need to bring a new notice from the tax office.
So, here is a general outline of how to return the income tax. If after reading this material you still have questions about how to make a tax refund, our specialists will be happy to help you and describe in detail the procedure for each specific situation.
As you know, the basic rate in 2018, as before, will be 13%, and based on it, personal income tax will be calculated and paid. But there are a number of cases where a taxpayer can return a part or a fully paid tax on wages, if he has every reason to do so. What could be the grounds?
There can be many reasons for a tax deduction. For example, you bought an apartment or spent money on treatment and education. In this case, part of the income will be exempted from taxes with the application of benefits or tax deductions. Cases when an individual is granted personal income tax benefits
Cases when an individual is granted personal income tax benefits
When building your own housing;
- in the treatment and purchase of drugs;
Upon purchase of a VHI insurance policy;
With voluntary pension insurance;
With cash contributions to charity;
Donated to religious organizations.
Income tax is refunded for property and social tax deductions, which are carried out by the tax agent (company accounting), which is obliged to consider the taxpayer’s application within 10 days by taking appropriate measures. In addition, the tax agent must inform the taxpayer about each case of overpayment, if any. The excessively withheld amount is returned to the taxpayer at the expense of personal income tax payments, which are subject to transfer to both the income of this individual and the income of other taxpayers. The deadline for all these actions is three months from the date of submission of the payer's application.
Individual income tax exemption
The amount of tax benefit is determined by the type of deduction on the basis of which it is granted. There are limits on the amount that can be returned to the taxpayer. If the basis for income tax refund is the purchase of real estate, then you can return no more than 260 thousand rubles, if a mortgage loan - up to 13% of the amount of interest, and if training or treatment - no more than 15 600 rubles for yourself and 6 500 rubles for each child . If expensive drugs are purchased, then the maximum amount of the privilege can be no more than 13% of the amount paid. If charitable activity is the basis for income tax refund, then up to 25% of tax withheld for the year can be returned to the payer.
What do you need for income tax refund in 2019?
In order to return the already paid income tax to the state budget, it is necessary to carry out thorough work to prepare all the necessary documents .. For this you need to collect and provide the following documents:
Filled tax
Documents confirming the expenses incurred
Application for social or property deduction
Interactions of a citizen with the tax office
The main problems faced by payers preparing documents for the return of income tax are the incorrectly completed tax return form 3-NDFL, the difficulty of confirming the expenses incurred, the submission of an incomplete set of documents, as well as inaccuracies in the tax deduction application. The latter reason most often serves as the refusal to provide tax benefits on personal income related to mortgage lending or the existence of joint ownership. Often, income tax refunds cannot be made due to the incorrect bank details where the payment will be made.
If the title document was received before 2014, a refund can be made in the amount of not more than 260,000 rubles once, subject to all of the above items. The unused amount, if the property is worth less than two million, burns out.
The right to a property deduction when buying an apartment for the second time that arose after 2014 allows you to apply for reimbursement as many times until the funds to be returned are equal to 260,000. About how many times you can get a property tax deduction, it is written.
Mortgage with a slightly different story: the certificate of 2013 allowed returning from overpayment on a mortgage within an unlimited monetary framework, while at the moment it is possible to return a maximum of 390,000 rubles subject to a bank loan.
Through employer
We will first find out whether it is possible to return the tax on the purchase of an apartment a second time through the employer and what is needed for this.
To calculate the amountlegally reimbursed for housing costs, it is necessary to take away from 260 000 the deduction that you have already received for the first time or must receiveif the process is not completed yet. At the same time, you can apply for a tax refund when buying an apartment a second time for the next property.
The question is often asked: “Can I get a tax deduction from buying an apartment a second time in a mortgage?” In cases of mortgage purchases, a choice is possible. Since funds for overpayment on a loan can be returned only once, and in both cases a loan was used, it is more profitable to repay a loan where the overpayment is greater.
Where to go?
To receive a property deduction when buying an apartment a second time, you must:
- Provide a tax application and all necessary documents.
- After receiving a notification from the tax authority about the result of consideration of the application, take it to the accounting department of the organization of which you are an employee. There you must submit an application.
What is needed for this?
Consider the documents that need to be collected in order to draw up tax deductions when buying a second apartment:
- original reference 2-PITprepares accounting;
- a document baseaccording to which the right was acquired (contract of sale, act of transfer of housing), in the original and a copy;
- extract from the USRN or certificate, in the original and copies;
- checks for the full cost of housing, in the original and copies;
- additional expense receipts on the arrangement of property, if we are talking about a new building, in the original and a copy;
- mortgage agreementif the property was purchased using borrowed funds, in the original and a copy;
- bank reference on interest paid on the mortgage, if any (also in two versions).
Personal income statement 2-NDFL:,.
Filling out an application
As a rule, they have a sample, and filling is very easy. Indicate the size that is due to you, and the year.
Enter your account details below. Cash tax is not issued.
Download an application for a deduction when buying an apartment:
- for tax:,;
- for employer:,.
Features of filling out a declaration to pensioners
- Submit your application no earlier than the end of the calendar year in which the purchase was made. That is, for a transaction from 2016, funds can be returned in 2017 for the 3 previous years.
- It is not possible to issue a refund for more than the last 4 years.
- If a pensioner did not have income for the current period, then there are no funds to be returned. For example, a citizen retired 6 years ago and has not been employed since then, which means that he is not entitled to apply for deduction.
It is written about whether it is possible to get a deduction for a retired pensioner and how to do it.
Dates and state duty
The declaration must contain information about the deductions received earlier, and the amount transferred from the previous tax period.
As a rule, this method is extended for 3 months, after checking the documentation, funds are transferred to the account you specified. Perhaps the tax will require clarification of some details in case of detection of contradictions.
Example 6. Spouses Veronika and Andrei Egorov bought an apartment, which according to all documents is listed as Andrei. However, he has already applied the right to compensation. The price of housing is 2 million. The spouses prepared an arbitrary statement in which they indicated that for Veronica the deduction share is 100%, for Andrey - 0%. Thus, the wife received full compensation for her husband’s apartment.
Earlier in one of the articles we talked about solving some problems that tax agents face with personal income tax (see ""). Today we dwell in detail on the situation with excessively withheld tax. How should an accountant act upon discovering excessively withheld amounts? To whom and in what terms should I report an overpayment? How to return money to an employee? Let's get it right.
10 days notice
The first thing an accountant who discovered the fact of excessive retention of personal income tax on employees should notify them of this. The Tax Code establishes a clear deadline for this, equal to 10 working days from the date of discovery of the fact of "overdue detention." But the form for such a notification, unfortunately, is not installed. In our opinion, an accountant can use the sample below.
On the letterhead of the organization “Windrose LLC”
10/27/2014 No. 08-b / cadr. Senior engineer of the BVI department
Ivanchenko P.I.
Notice
on the fact of excessive tax withholding and the amount of excessively withholding tax
Dear Pyotr Igorevich, in accordance with paragraph 1 of Article 231 of the Tax Code of the Russian Federation, we inform you that on November 25, 2014 the accounting department of LLC Roza Vetrov revealed the fact of excessive withholding from the amount paid to you in September. d. income tax on personal income. The amount of excessively withheld tax amounted to 1023 (one thousand twenty three) rubles.
At the same time, we inform you that you have the right to contact the accounting department of Rosa Vetrov LLC with a request for the return of this amount in the manner provided for in Article 231 of the Tax Code of the Russian Federation.
Director Savchenko I. S. Savchenko
Without a statement - nowhere
By sending the employee such a notice, the employer is no longer required to take any action. Now the employee must take the initiative. He should contact the tax agent with a request for a refund of the excessively withheld tax amount. The Tax Code does not establish a deadline for preparing such a statement, but it is logical to assume that it is not worthwhile to extend more than three years established by Article 78 of the Tax Code of the Russian Federation as a general deadline for tax refunds. Yes, probably, in practice, there are no such delays on the part of the employee.
What should be indicated in the statement? Firstly, the name and position of the employee, as well as the name of the organization-addressee of the application. The application is written in the name of the head of the organization, as it is he who acts on behalf of the tax agent in tax relations. Secondly, a clearly expressed desire to return the excessively withheld tax amount. Thirdly, the amount of tax to be returned, and finally, the bank details for its transfer. Please note: personal income tax is always returned only by bank transfer, even if the employee receives cash at the cash desk if the salary (other income from which the tax was unnecessarily withheld).
So that employees do not fantasize, writing a statement, you can offer them to use the finished form, making it can be made an appendix to the above notice.
Director of LLC “Windrose” Savchenko I.S.
from senior engineer of the BVI department
Ivanchenkova P.I.
Statement
for refund of excessively deducted tax amount
In accordance with paragraph 1 of Art. 231 of the Tax Code of the Russian Federation, I ask for a refund of excessively withheld from my salary for September of this year. tax on personal income in the amount of 1023 (one thousand twenty three) rubles. I ask for a refund by the following details:
Name of the bank: Krasnodar OSB No. 8627 of Sberbank of Russia
Location of the bank: Krasnodar
k / s 30101810300000000987
BIC 044705987
TIN of the bank 2193001987
account 42307.810.8.1212.4823987
Name: Ivanchenko Pyotr Igorevich
Return Technique
So, the correctly executed application has been received. Now you need to transfer money to the employee. The Tax Code of the Russian Federation gives the employer three whole months for this, indicating that money can be taken from current payments on personal income tax. Moreover, it is not necessary from this particular employee - the funds for the return can be taken from the total personal income tax withheld by this tax agent. This allows you to make a refund both in situations where the employee will not receive payments in the coming months, and in cases where the personal income tax to be withheld from the employee is less than the return.
Another important point for the accountant: with this option for tax refunds, it is not necessary to notify the tax inspectorate about the operation performed (see letter of the Ministry of Finance of Russia dated 10/18/13 No. 03-04-06 / 43608; ""). Thus, the refund algorithm is simple: excessively withheld tax amount is withdrawn from the next payment to the budget and transferred to the account indicated in the employee’s application. It is clear that all documentation for this operation needs to be hemmed and stored in case tax claims arise.
The considered option is suitable for most situations, but in practice, as they say, options are possible. So, small organizations may have a situation where there is no tax payable to the budget. In this case, the Tax Code provides a mechanism for the return of personal income tax from the budget to the account of the tax agent for payment to its employee. Such a refund is carried out in accordance with article 78 of the Tax Code of the Russian Federation, that is, in the same way as the refund of any other tax - at the request of the tax agent. The Tax Code of the Russian Federation requires that this statement be accompanied by an extract from the tax accounting register for the relevant tax period and documents confirming excessive deduction and transfer of the tax amount to the budget. Separately, we note that in the described case, the Tax Code allows for the possibility of compensation for excessively withheld amounts at the expense of the agent and the subsequent receipt by the agent of this amount from the budget. That is, despite the fact that the Tax Code allocates three months to returning money to the employee (and the personal income tax return from the budget in accordance with Article 78 of the Tax Code must be met within these periods), the employer can meet the employee and pay him money earlier, without waiting return of personal income tax from the budget.
Exceptions to the Rules
As with any rule, there are also exceptions in the procedure for returning “excess” personal income tax when the employer does not have the right to return the money to the employee and the latter needs to apply for “his own money” to the tax office.
The first such exception is related to the type of overpayment. It can be formed not only due to an error, but also due to a change in the status of the employee from non-resident to resident. In this case, the tax recount and refund is carried out through the inspection (paragraph 1.1. Article. 231 of the Tax Code). Accordingly, it is not necessary to notify the employee of such “overpayments”, nor does he accept the application for the return of such amounts for execution.
The second exception is associated with the tax agent, more precisely, with its absence. In this case, the employee must also apply for a refund to the tax office. It must be remembered that the tax is always returned by the same agent that withheld it. This means that if an employee was transferred within a group from a company to a company with the subsequent liquidation of one of them, then it is impossible to return the tax “for the liquidated” company.
If you are officially employed, regularly pay income tax to the state from year to year and still have not used your right to receive a tax deduction when buying an apartment, building a house and compensating interest on a mortgage, then you should definitely read this article from beginning to the end.
Your right to a tax deduction is legislatively fixed and described in detail in article No. 220 of the Tax Code of the Russian Federation, and will also be explained in detail and on specific examples by our leading lawyer.
Today we will tell you about all the intricacies of making a tax deduction when buying an apartment, taking into account all changes in the legislation for 2019, as well as explain in detail to whom, when, how much and how you can get a refund for the purchase of an apartment.
If you have any specific questions on this topic, then our online lawyer is ready to promptly and free consult you directly on the site. Just ask your question in a pop-up form and wait for an answer. So you can quickly and easily understand your rights to receive a tax deduction.
The most common issues that our lawyers face are: who and how many times can receive a tax deduction when buying an apartment. We answer:
Every officially registered citizen of the Russian Federation has a legal right to receive a tax deduction for the purchase of an apartment, for which the employer monthly deducts income tax on his labor activity in the amount of 13%. In the same amount (13%), a citizen can return the money from the acquired real estate, and more precisely in the following cases:
- Direct purchase of housing (apartment, house, room);
- Building your own home;
- Any expenses for repair and decoration of newly made residential property (the main thing is to keep all receipts);
- You also have the right to return the money for paying interest on a mortgage loan.
Who will not be able to return the money?
It will not be possible to return the income tax for the purchase of an apartment if:
- You have purchased an apartment before January 1, 2014 and have already exercised your right to deduction;
- If you purchased real estate after January 1, 2014, but have exhausted your limit (more on that below);
- If you purchased property from a close relative (mother, father, daughter, son, brother, sister);
- If you are not officially employed (and therefore do not pay income tax);
- If your employer participated in the purchase of the apartment (for example, the company in which you work paid for some of the housing you purchased);
- If you used some state programs or subsidies, for example, maternity capital, when buying an apartment.
How many times can I get a tax deduction when buying an apartment?
In response to this question, two options are possible:
- If your apartment or other real estate was acquired before January 1, 2014, then according to Article 220 of the Tax Code of the Russian Federation (paragraph 27, paragraph 2, paragraph 1), you are entitled to use the tax deduction only once in your life, and it does not matter which The price cost you square meters. For example, if a house was bought for 500,000 rubles, then the maximum amount that you can count on is 13 percent of 500,000, i.e. 65 000 rubles. And that is all!
- If you purchased housing after January 1, 2014, then you can count on a multiple tax refund, but within the limits of 260,000 rubles, since the maximum amount set by the state for the refund of money from real estate purchase is two million rubles. For more information on how much money can be returned, as well as a discussion of specific examples, read further in this article.
Our lawyers know the answer to your question
or by phone:
How much money will be returned?
So, what amount of state compensation can you expect when buying an apartment after January 1, 2014? We answer:
Your maximum limit on income tax refund on the purchase of an apartment is 2,000,000 rubles (for a lifetime). You can return 13% of this amount, i.e. 260 000 rubles and no more.
For each calendar year, you can return an amount equal to your income tax, which your employer pays the state for you (13 percent) for the reporting year, while the balance of the funds due to you does not burn, and in subsequent years you can also issue a refund until do not exhaust your limit.
But you have the right to submit income declarations to the tax inspectorate only for the current or maximum of three previous years, but more on that later. To begin with, let's finally deal with the amount of tax compensation that you can count on when buying an apartment. In order for everything to become completely and utterly clear, we will analyze two specific examples.
An example of calculating the tax deduction for the purchase of an apartment
Example 1: At the beginning of 2015, you bought an apartment for 2 500 000 rubles. All year you officially worked and received a salary of 60,000 rubles per month. Thus, at the beginning of 2016, you have the right to contact your tax office at the place of residence and write a request for a refund for the acquired property. The maximum that you are entitled in this case is 13% of 2,000,000, i.e. Only 260,000 rubles. Because Since your annual income tax deductions for 2015 amounted to a total of 93,600 rubles (60,000 * 0.13 * 12), you can count on exactly that amount of return (93,600) in 2016. The rest of the money will be returned to you in the coming years if you are still officially employed. For example, in 2016 you officially worked for only three months with a salary of 20,000 rubles, so at the beginning of 2017 you can receive a tax deduction equal to 7,800 rubles (20,000 * 0.13 * 3). Thus, for the next years you will still have the amount to return equal to 158 600 rubles (260 000 - 93 000 - 7800).
Example 2. You have purchased an apartment worth 1,500,000 and filed a tax deduction for its purchase. In this case, you can count on 195,000 rubles (13% of 1,500,000). But later you bought another apartment worth 2,000,000 rubles. Accordingly, according to the law, from this purchase you can return another 65,000 rubles (13% of 500,000), since the total limit for the return is limited to 2,000,000 rubles.
Required documents
In order to regain tax on the purchase of an apartment, first of all, you need to make an application according to the established model and provide all of the following documents with copies to your tax office at the place of residence.
So, the list of documents required for obtaining a property tax deduction, approved for 2018, is as follows:
- Copy of the passport;
- The contract of sale of the apartment + copy;
- Legal documents for the object: a copy of the certificate of registration of ownership, or the act of transferring the apartment into ownership (if the apartment was purchased in a building under construction under an equity agreement);
- Copies of documents confirming payment for the purchased property (checks, bank transfer statements, payments, etc.);
- A copy of your Certificate of Assignment of a Tax Identification Number (TIN);
- Certificate of income from the place of work in the form of 2-personal income tax;
- It is also necessary to provide a declaration of your annual income in the form of 3 personal income tax for the past calendar year;
- A completed tax refund application.
In addition to the required documents listed above, the tax authority may also require you to fill out an application for the distribution of the deduction between the spouses if you are officially married. Below you can download and familiarize yourself with the samples of applications required for filling out.
To return the tax deduction for the previous 3 years, you also need to fill out tax returns for 2017 and 2016.
When to submit documents and for what period can a tax be returned?
Documents for the return of property tax when buying an apartment, you can, starting from the moment you fully pay for the purchased housing and get your hands on documents for the right to own real estate:
- Certificate of registration of ownership - in the case of acquisition of square meters under the contract of sale;
- The act on the transfer of ownership of the apartment - if the property was purchased in a house under construction under an equity agreement.
Also, you must have in your hands all payment documents confirming your expenses on purchased housing.
As a rule, the filing of documents for a refund occurs at the beginning of each calendar year. It is best to apply to the tax from the second half of January (immediately after the New Year holidays).
In addition, if you purchased an apartment several years ago, then you can also receive a tax deduction for it, and you have the right to file a declaration of income for the previous three years. Those. for example, you bought an apartment in 2016 and forgot to exercise your right to a tax refund. Five years later, in 2021, you changed your mind and appealed to the tax office with a corresponding statement. All these five years, you have worked honestly and had official income, but you can only use your deductions to the treasury in just three years preceding the time of applying for the deduction. In this case, it is 2020, 2019 and 2018. If during this time your total income tax is less than the amount due to you (see "How much money will be returned?"), Then the rest of the amount you can easily receive in subsequent years.
Tax deduction process
The most optimal way: getting yourself through contacting your tax office. Even if you have to fool around a bit and run for inquiries, collecting them at different instances, but in the end the procedure will be much cheaper than contacting a specialized company.
If you don’t want to do this yourself, or you simply don’t have time for this, then our online lawyer is ready to give you free advice on how to significantly speed up and simplify the whole process.
To receive a tax property deduction in 2018, you need to fill out a new declaration in the prescribed form 3-NDFL and attach it to the collected documents (it is also present in the list of required documents).
Together with the copies, the package of documents is handed over to the tax officer on duty, after which he will check them for some time and, if everything was done correctly, you will soon receive the long-awaited money transfer. As a rule, consideration of applications and decision-making on them takes place within a period of two to four months.
How do I get a cash deduction from my employer?
You can get a tax deduction for buying an apartment without contacting the tax office. More precisely, you will have to apply there only once in order to confirm your right to a tax deduction. To do this, you will need to prepare copies of all the documents described above and fill out the application “on confirmation of the taxpayer’s right to receive property tax deductions”, the form of which you can download below.
After receiving a written notice from the tax office confirming your right to a deduction (usually it takes about 30 days for the tax authorities to consider the decision), you need to contact your immediate employer and provide him with this notice about the right to receive a tax deduction. From the month you provide such a notice, the accounting department must accrue your salary without deducting income tax.
How to do this correctly, you will be consulted for free by our lawyer on duty. Just ask him the appropriate question in a pop-up form and wait for an answer.
Also, if you have any gaps in understanding your rights and the necessary actions for the return of income tax after buying an apartment, then our experts will consult you for free online.
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You can find out how much you can return the tax on buying an apartment in 2019 using our