Deduction codes for reference 2 personal income tax. Tax deduction for children
Filling out a 2-NDFL certificate is carried out by the accounting departments of employing companies. The state assigned them the special status of tax agents. It implies assignment of special obligations to the required companies related to the transfer of tax deductions to the budget of the country, as well as the submission to the Federal Tax Service of relevant reports, which is a 2-NDFL certificate and other forms filled in in the accounting department of the employing organization. In this article we will tell you why the deduction codes 501 and 503 are needed in the 2-NDFL certificate?
For ease of processing and further verification of the document, the Federal Tax Service has developed specialized sequences of numbers - codes that fill in blank paper columns. These numerical combinations eliminate the need to fully describe the income received, tax deductions and deductions provided, since now it’s enough to look at the code and open a specialized classifier to know its meaning.
To understand why the 2-NDFL certificate is used, you must first understand the meaning of the desired abbreviation, which goes in its name after the number 2.
So, personal income tax is a tax charge that is deducted from income received by individuals. The list of these revenues is determined by law. Not all money that a citizen can get is taxed. For example, funds donated by a close relative are not subject to partial deduction to the state treasury.
Most often, the state expects to receive funds from the income tax of an individual from citizens when they:
- receive wages at the place of employment;
- receive bonuses from superiors;
- accept the provision of material assistance;
- sell an apartment, house or other housing, or maybe just a share in it;
- rent their own living space for rent;
- sell the car and other property belonging to them;
- receive royalties for their literary work;
- in many other situations.
This fee is also called income tax. The rates on it are fixed. There are two of them. One is relevant for the so-called tax residents of the Russian Federation, the other is for non-residents.
Possession of this status implies a stay in Russia for a certain period of time - at least 183 days a year. If a citizen was within the Russian borders at least one day less, he will not be granted resident status.
Who is a tax resident of the Russian Federation? This will help to figure it out. In it, we consider what the tax status, documents for confirmation, and the regulatory framework for residents and non-residents depend on.
At the same time, depending on the number of days "on the account" of each citizen, the tax rate will also change. So, residents get the opportunity to transfer funds to the treasury at the standard rate for the country: they give only 13% of the money received. The named value is considered, however, and is quite acceptable. Non-residents are forced to share with the state a huge part of their own income - as much as 30%!
To make it clearer, we give you an example. Imagine that two friends, Ivan Petrov and Demid Sidorov at the same time decided to sell housing. Ivan Petrov is in Russia for at least 250 days a year, the rest of the time he goes on business trips or vacations with his family. Demid Sidorov is within the borders of the homeland no more than 175 days a year. When it was time to sell the apartment, Ivan Petrov put it at a price of 2 million Russian rubles, and after the sale paid 260 thousand taxes to the state treasury (2,000,000 * 13% \u003d 260,000). Demid Sidorov sold the apartment for the same price, however, instead of 260 thousand, he had to give as much as 600 thousand to the state treasury, that is, almost two and a half times more.
Selling an apartment and a car in the life of ordinary people does not happen often. How to calculate and pay taxes from these transactions, we will tell in our articles: “” and ““.
As a rule, Russians pay most of the income tax in their own lives precisely from the wages they receive at the place of employment. It is issued every month in a certain amount. On the day the salary is paid, a specific part is deducted from it (as a rule, 13%) and transferred to the state treasury on behalf of the taxpayer from whom the money was calculated. The tax agent is involved in this procedure. He, as we have already found out, is the organization of the employer. In addition to the transfer of wages and tax deductions, the company also provides so-called deductions to citizens by decision of the tax service.
A tax deduction is a certain amount of money for which it is possible to reduce the monetary base levied by the collection in favor of the treasury. In other words, tax is always calculated from a certain value. Funds deducted from wages are calculated based on its original size. So, if an employee is promised to pay a salary of 20 thousand rubles, it means receiving 2 thousand 600 rubles less, that is, only 17 thousand 400 rubles. The difference that is not received is the part that the state is entitled to. It can be reduced by reducing the salary itself, however, not by demotion or applying any sanctions to it.
It is possible to carry out the procedure using a tax deduction. It is provided to citizens as a result of the occurrence of relevant situations in their lives. Most often, deductions are provided through the employer:
- social, or employee or members of his family;
- property, outstanding at;
- standard, on and other types of compensation.
By the amount of the deductions provided, it is possible to reduce the monthly deduction of tax on personal income in favor of the state budget, taken directly from the employee’s salary. This reduction will be made until all the funds that have been relied on are fully provided to the employee.
What is the help 2-NDFL used for
As mentioned above, the provision of a 2-personal income tax certificate is made by a tax agent. Earlier in the article, we described what manipulations the organization-employer performs:
- gives income to the taxpayer;
- calculates and sends tax to the budget;
- provides deductions.
To display all the required operations and transmit a report on them, they use the form of the discussed reference established by the state.
The last update of the form itself was made by the government in December 2015. It was then that the use of a new sample of the document sought came into force.
In addition to reporting to the Federal Tax Service, a 2-NDFL certificate may be needed by employees of the organization for their own needs. To receive it, they must make a statement addressed to the head of the employing organization.
A tax agent submits a document for verification if:
- he paid to the persons working with him funds that are subject to partial deduction in favor of the state budget, by calculating the tax on personal income;
- he paid employees funds, but was unable to withhold income tax.
In the second case, the employing company has an obligation, not later than 60 days from the end of the current tax period, to notify the Federal Tax Service of the absence of the required opportunity and at the end of the year to submit for verification the data in the completed 2-NDFL certificate.
When an employee comes to the accounting department and draws up an application to receive the certificate in question, he will most likely use it in the future to:
- providing at a new place of employment, in order to receive a deduction of a standard or other orientation, since for the issue of the required funds it is necessary to keep records of income paid from the beginning of the current tax period, taking into account also funds issued by a past employer;
- receiving information, which is then entered into the declaration form of form 3-NDFL, which is submitted for verification to the tax office in certain situations;
- transfers to any other place where a certificate was required, for example, to a credit institution, to receive a cash loan.
Pay attention to the following most important fact: a citizen demanding a certificate should not report to accounting staff or even superiors about why he needed it. The employing organization does not have the right to refuse to issue a certificate without this information; this circumstance is determined by the Tax Code of our country.
According to the letter of the law, a certificate must be issued no later than three days from the date of writing and submitting an application from an employee for consideration. Holidays are not counted.
If the certificate is requested in the middle of the one-year period, the employer fills it out on the basis of the information currently available.
If the company is not an employer, it is not obligated to pay salaries and transfer income tax deductions to the state budget. This means that the organization is also not required to prepare, fill out and submit for verification of the tax return.
In addition, exemption from this obligation is made in some other cases:
- if the company paid income to employees who must independently carry out the procedure for calculating income tax and transferring them to the state treasury;
- if such a payment of funds was made in favor of employees, which implies the independent transfer of their part to the treasury by the recipient;
- if income was issued in the form of cash from which tax is not deductible according to the letter of the law.
Filling out the certificate is carried out in accordance with the rules established “above”. The document consists of five sections, each of which implies the indication of specific information.
Table 1. Filling sections
The encodings in the certificate are used not only to indicate varieties of income and deductions. With their help, they also determine for what reason the paper is submitted for verification:
- in the column with the name “sign” the number 1 is entered if the paper is submitted for income tax that has been successfully transferred to the state treasury;
- put the number 2 on the same line if the tax withholding did not take place.
To deal with all the encodings used for reference, the decryption provided by the Federal Tax Service will help in the form of a list recorded in one of the orders issued by the service. You can familiarize yourself with the full list by finding it among the attached documents on the official website of the Federal Tax Service.
The rules governing the procedure for filling out a certificate are contained within the appendix of the relevant order. Each experienced accountant has an idea about them, since he faced the filling of the required paper not only during his studies at a higher educational institution, but he also certainly resorted to filling it out more than once in the course of work.
If you are just starting to work in the accounting field and completing the document for the first time, you should look for a completed sample of paper on the Internet and check it for the first time. Be sure to pay attention to the edition of which year the sample you found will be created.
Designation codes 501 and 503 in Help 2-NDFL
Let's move on to the consideration of the code numerical sequences named in the main article that you are currently reading, dear reader. A company that has an obligation to provide for verification of a certificate in the form of form 2-NDFL is obliged to complete it in accordance with legislatively established standards. One of these norms implies filling in specially existing lines for this, not with words, but with codes, each of which has its own decoding. Codes 501 and 503 considered by us are intended to indicate specific types of deductions.
Let's take a look at each of the two named designations.
Deduction code 501 in certificate 2-NDFL
Organizations undertake to keep records of income taxable to the taxpayer. One such income is a gift. Please note: this type of funds received by the taxpayer is subject to tax on personal income only partially. If the price of the gift is not more than the sum of 4 thousand Russian rubles for each employee for a one-year period, then it is completely exempted from calculating the tax and transferring it to the treasury. It is very important to continue to keep records not for all employees combined, but for each individual.
We give an example. On International Women's Day, the organization “Buttercup” presented a gift to its only employee, the initial cost of which amounted to 3 thousand Russian rubles. Since this was the first gift for the current year period, and the legal limit of 4 thousand rubles was not exceeded, the income tax from the presentation is not withheld. However, on the employee’s birthday, held on the 25th of June, the company again presents the employee with a gift, this time its price was 6 thousand Russian rubles. At the time of the employee’s birthday, the total amount of money I spent on gifts amounted to 9 thousand rubles. However, the tax will not be deducted from this amount and not from 6 thousand rubles. In order to calculate the financial base of the deduction, it is necessary to subtract the allowable limit of four thousand from the total amount calculated: 9 000-4 000 \u003d 5 000. It is from this value of five thousand that tax withholding is necessary.
Bookkeeping will enter the required data into the certificate of form 2-NDFL using the following two code designations:
- 2720;
The first encoding, although not named in the topic of the article, needs to be represented equivalently. With its help, inside the certificate, the issuance of a gift to an employee is abbreviated. The sequence of digits 501 is used to indicate the deduction provided for the funds donated to the employee. It is entered in the third section, on the right side of the column, which implies the inscription of the amount of income.
Note! Indications for the code 501 in the document cannot exceed 4 thousand rubles, since this value is the deduction of the employee’s income for the desired item.
Since the gift most often appears not in cash in an envelope, but in some object, the deduction of funds, which, according to the law, should be made upon its issuance, becomes impossible. This means that the transfer of funds is necessary in the next payment to the employee of the funds. The circumstance that determines whether the implied funds are subject to partial deduction to the state treasury does not play a role. So, if a citizen receives only allowance at the place of work during the tax period, which appears to be due to the care of his offspring, the tax charge must be withheld from these funds.
If, after giving the required presentation, the employee of the organization does not receive sufficient funds to withhold income tax, it is necessary to submit to the tax inspectorate the completed form 2-NDFL for verification, in the column named “sign”, which will be marked with the figure 2. Above In the article, we already mentioned that its affixing is for a document transmitting tax data that could not be withheld.
Deduction code 503 in certificate 2-NDFL
As for code 503, it is used to indicate a deduction for material assistance. Its value is similar to the deduction for which code 501 is used. It is 4 thousand Russian rubles in a twelve-month period, that is, in a calendar year, per employee of the organization.
The display of material assistance in the reporting document (certificate 2-NDFL) is made similar to a gift. The differences will consist only in the code sequences used for this. So, for the deduction of material assistance, the numbers 503 are used, and to indicate the payment of material assistance itself, the numbers 2760.
Limits that are not taxable and for gifts and material assistance are considered separately, therefore, deductions for code 501 and code 503, despite the similar size and similar scope of application, have no relation to each other and have no effect.
Note! There is an exception to all of their rules, this also applies to material assistance. If the funds are not provided in the standard direction, and the money is given out at the birth of a child, based on two parents, material assistance is not subject to taxation, the limit of which is 50 thousand Russian rubles.
To summarize
The use of code marks when filling out documentation determined for verification in government systems is a frequent and necessary practice, primarily due to the fact that this method of providing information seriously reduces the time spent on this procedure, and in addition, labor costs are also reduced. It is very important to have knowledge regarding the encodings, or to keep the list with their decryption handy in order not to make mistakes and not to receive penalties from the tax inspectorate of various kinds.
Video - How to fill out a 2-NDFL certificate
Regulatory bodies try to simplify the declaration on personal income tax as much as possible so that any taxpayer who does not have special knowledge could report on income. Therefore, when filling out 3 personal income tax, special codes are not used that are used in statements of income issued by accountants.
The question of designating a particular code for a person filling out a declaration may arise when transferring these 2-NDFL certificates to the report or when using the application “Declaration” of the tax service.
What does code 327 mean?
In accordance with the established rules, a tax deduction is made in the 2-NDFL certificate under digital codes indicating their type.
Code 327 is intended for the bookkeeping of the expenses specified in sub. 4 p. 1 art. 219 of the Tax Code of the Russian Federation. Includes payments for non-state pension provision (insurance) or life insurance made by the taxpayer for himself or his relatives. This is a social deduction.
You can receive social deductions by code 327 at the tax office at the end of the year or from the employer. However, tax reduction at the place of work is possible only if there is a notice from the tax authority.
The amount of expenses included in the social tax deduction is limited to 120 thousand rubles (except for tuition fees for children and expensive treatment).
Social deduction limit \u003d 120 thousand p. * 13% \u003d 15.6 thousand rubles.
A deduction can only be obtained if there is a taxable income. The deduction is valid during the tax period in which contributions were paid. It is not carried over to the next years.
If the employer has not reduced the tax during the year, the citizen has the opportunity to receive a deduction by submitting a declaration to the inspection at the place of registration.
To see whether pension and life insurance expenses were deducted when calculating the tax and how much can be in the certificate 2 personal income tax. If the deductions were not made or made in an incomplete amount, you should submit a 3-NDFL report to the tax service.
Where are 3 personal income tax deductions for code 327?
In the income tax report, social deductions are calculated on sheet E1. The deductions for code 327 are indicated on line 3.4.
The amount of expenses included in the deduction is determined on Sheet E2. Here you need to enter the data of the NPF or insurance organization (TIN / KPP, name), information about the contract (type, date of conclusion, number), the amount of contributions paid and accepted for deduction.
The amount of the deduction is determined by multiplying the amount of expenses accepted by the tax rate (13%). The result of the work in rubles and kopecks is transferred to line 3.4. sheet E1.
Deduction 327 in the Declaration program
Using the Declaration program is the most convenient way to fill out a report. In order to enter data on expenses 327, you need to go to the section “Deductions” on the tab “Social deductions”.
The introduction of pension and life insurance contracts is carried out in the lower block. Information is entered:
- type of contract;
- name of the fund or organization;
- contract number;
- agreement date;
- amount of deduction used by the employer;
- amount of contributions.
The amount of contributions is written in full. The program itself will calculate the size of the deduction.
If a Russian receives official income from which personal income tax is withheld, and he has at least one child, he can pay less to the budget. The amount of benefits depends on the number of children, disability, education, place of residence of the child, on whether the parents are married, and other factors. Accordingly, the documents confirming the right to an exemption are subject to change. Read more about how to get a deduction for children, read on.
For whom
- 114 - on the first;
- 115 - on the second;
- 116 - on the third;
- 117 - on the fourth.
If a person is employed at several enterprises simultaneously, a deduction for children can be obtained at one of them. An updated package of documents should be submitted to the accounting department annually.
How to get a deduction through the FTS?
If for some reason the documents were not completed within a year, an application for a discount can be submitted to the tax service. But in this case, in addition to the documents listed above, you will have to provide an additional 3-NDFL declaration and a statement of income from accounting. Papers are considered 3 months. After a 10-day check, the taxpayer will receive a written notice with the result. If the answer is yes, you need to contact the tax office, write an application for personal income tax compensation, and specify bank details. Funds are transferred within one month.
The legislation prohibits the transfer of unclaimed amounts between tax periods, as well as within one year. In the framework of the previous example, this is clearly visible. An employee receives a deduction for 7 consecutive months. There were no breaks.
Features
If the child is raised by one parent, you must additionally provide a death certificate of the spouse (s) or a passport confirming that he (a) has not entered into marriage. If the "children" are drawn up for the third baby, copies of the birth certificates of the older children should be provided.
Both parents can deduct tax on the child if they live at the place of residence of one of them. If the marriage is not formalized, then an additional certificate of paternity, a statement by the mother that the father provides financial assistance should be provided. If the couple is divorced, then the proof is the writ of alimony or a notarized agreement between the parents.
If the child is abroad, then the privilege is granted on the basis of documents certified by state bodies of a foreign power. If the papers were provided in the middle of the year, and the right to deduction for 1 child appeared in January, settlements are still carried out from the beginning of the year. If an employee came to work in the middle of the year, he must provide a certificate of income from the previous place. The benefit will also be calculated from January-month, and for this we need data for the whole year. Without certificates, the deduction is granted only to persons employed or to those who have not worked for a long time. This must be confirmed by the work book.
Duration
The benefit can be applied from the month of birth (adoption, custody, guardianship) until the end of the year in which the child reaches 18 years of age (student - 25 years old), or in the event of his death. “Children’s” are provided for the period of study at a general educational institution, including for academic leave until the month following the end of studies.
Amount of children
The order is determined by date of birth. Age does not matter. The oldest will be considered the first, even if he is already more than 24 years old.
Example 1
We distribute children in a large family according to their age (29, 15, 10 and 6 years):
- deduction is not provided for the first (29-year-old) child;
- on the second (15 years) - 1.4 thousand rubles .;
- for the third (10 years) and fourth (6 years) - 3 thousand rubles.
If each of the spouses has a child from previous marriages, then their common offspring will be considered the third.
Example 2
The employee of the LLC has four children: 5, 9, 16 and 25 years old. Her monthly salary is 40 thousand rubles. She wants to make a deduction for children.
The benefit will be calculated only for three minors, but the first remaining 25-year-old child. The amount of the deduction will be:
1.4 (for the second) + 3 x 2 (for the third and fourth) \u003d 7.4 thousand rubles.
Personal income tax will be calculated from the amount: 40 - 7.4 \u003d 32.6 thousand rubles.
Monthly employee will pay tax: 32.6 x 0.13 \u003d 4,238 rubles.
The deduction is granted for a period up to July inclusive, since since August the annual income will exceed 280 thousand rubles.
Even dead children are involved in the calculations.
Example 3
The taxpayer wants to receive a deduction for children: 20-year-old son (works), middle son (died in 2001), still has a daughter of 5 years. The benefit will be provided only for the third child in the amount of 3,000 rubles.
The deduction for a disabled child, even if he is the third in the family, is provided only one - in the amount of 3 thousand rubles. If one of the twins is disabled, then the taxpayer can distribute the order.
Example 4
The employee has three children: the first is 10 years old, the twins are 5 each (one of them is disabled). The taxpayer may indicate the following sequence in the application:
- the first is 10 years;
- the second (disabled person) - 5 years;
- the third is 5 years.
Double deduction per child
The double tariff benefit is calculated if there is only one parent (adoptive parent). At the same time, there is a death certificate, a court decision on the recognition of a person as missing, the birth certificate does not contain information about the father.
Example
A woman independently brings up three children. The youngest of them (20 years old) is studying at the institute. The standard deduction for a full-time student is provided for each month in a double amount: 3 x 2 \u003d 6 thousand rubles.
If such an employee marries, she will lose the right to double deduction for children. The increased benefit will return after the termination of the union. Parents who are divorced and deprived of parental rights do not fall into this category. Both incidents do not relieve them of the obligation to support children.
Parents can redistribute "children", that is, apply for a single discount at a double rate. The statement should indicate that the second parent waives his right to provide a document from the accounting department that the benefit is not really calculated. This paragraph is about parents. That is, the new husband of the mother cannot refuse the right to receive benefits for the first child of the spouse.
Property deduction for children
The right to benefit also belongs to a young family who purchases real estate in the primary market or erects a house. It is provided in the amount of the cost of repaying interest on loans. Parents who bought property with a minor child can receive a deduction for it. Who exactly will draw up the documents, the spouses decide on their own.
Example
The couple bought in 2014 an apartment for 4 million rubles. in the property together with two minor children (1/4 of each share). The couple decided to distribute the deduction in this way:
- husband - 2 million rubles. (own share and share of the first child);
- wife - 2 million rubles. (own share and share of the second child).
Another member of the family, for example, grandfather or grandmother, can also receive a benefit.
A parent can receive a deduction even if the apartment was issued for only one child. The privilege can be used only once in a lifetime for one object. Its size is limited to 2 million rubles. If the taxpayer purchased the land for 1 million rubles. and a residential building at the same price, a deduction can be made only for one of them. But if the house is located on a purchased plot, then both objects will be considered as one.
Standard tax deductions can apply to many employees. However, not every employee knows about this. By the way, employees of the personnel department or accounting department are not obliged to inform the applicants about this, since the provision of documents is the right of the employee, and not his duty. Deduction codes 126 and 127 are most common, as they relate to the first and second child.
general information
A tax deduction is a kind of privilege for an employee. It is noteworthy that there are several types. The most popular personal deductions for children.
The former include small amounts that are not taxed and for which war veterans, as well as persons with disabilities of the first and second groups, are entitled.
The second large group includes those amounts that are not taxed at the rate of thirteen percent due to the fact that the employee has children. Here, the classification is quite large-scale, since everything affects the deduction code, from the presence of the second parent to the child’s account.
How can I calculate my tax?
If the employee himself wants to check his tax, then he must know how to calculate it correctly. In the general case, the entire amount of his salary is multiplied by thirteen percent or by 0.13.
However, if an employee has the right to a tax deduction and has provided a full package of documents, then he should not tax the entire amount of his salary, but only a part of it.
The deduction code 126 and 127 assumes, for example, that an employee who has a first or second minor child has the right to a deduction in the amount of 1,400 rubles. If there are two children, then the amount doubles. However, it is necessary to bring all documents to the children on time. Otherwise, you will have to return the lost amounts through the tax authorities and only for a certain period.
A practical example. Tax calculation
An employee, Ivanova I.I., presented documents for her children. Deduction codes 126 and 127 are applied to her, that is, on the first and second child, respectively. If the total sum of Ivanova I.I. earnings per month amounted to 10,000 rubles, then without a benefit she had to pay the state 1,300 rubles.
But, since the employee has the right to standard tax deductions of code 126, 127, then from her salary when calculating the tax, one can safely subtract 1,400 and 1,400 rubles. Total, the amount of 7200 rubles is taxed. The amount of tax transferred to the budget is 936 rubles. This means that the privilege of Ivanova I. I. saved her 364 rubles.
Deduction code 126: what is it?
Tax deduction with code 126 denotes a personal income tax benefit for the first child. It is noteworthy that not only one whose child has not reached the age of eighteen can use it. When providing a certificate from an educational institution confirming that the child is studying full-time, the benefit continues to be valid until the child reaches the age of twenty-four.
It is also worth noting that this deduction code has been used since the end of 2016. Earlier, code 114 corresponded to it, which also applied to the first child under the age of majority or receiving education, but only in full-time education.
The amount of the deduction code 126 is 1,400 rubles. This means that it is this part of the employee’s wages that is not taxed. That is, a monthly savings of 182 rubles.
Also, one should not forget that the deduction ceases to apply if the amount of wages for a calendar year has reached 350,000 rubles. In the month in which this amount was collected, deduction codes 126 and 127 will not apply.
If a child is born: we carry documents
If an employee who works at the enterprise has a child, he can immediately bring the whole package of documents to provide a standard deduction of codes 126 and 127, and any other. It all depends on what kind of child appeared in the family.
For this, only two documents are needed: a personal statement and a copy of the birth certificate of the child. However, nuances are possible. If the parent brings up the child alone, he also needs to provide documents that confirm this.
These include a certificate for single mothers in the form of number 25, a death certificate of the second parent, a certificate stating that he was missing. It is also worth bringing a copy of the passport, which states that after the death of the spouse or the status of a single mother, the parent did not marry. This is necessary so that the accounting department knows which codes to use. The personal income tax deduction code 126 and 127 applies only to those who raise a child in a full family. For a single parent, these amounts will be doubled.
It is also worth paying attention to the change of surname. This is especially true for women. If the maiden name is inscribed in the birth certificate, and now the employee has other data, then it is also worth bringing a document confirming this. In this case, it will be a certificate of marriage.
The personal statement should indicate your data in which department the employee works, as well as the data of the child, starting with the surname, name and patronymic and ending with the date of birth. It is also worth putting a signature and the date of writing the application.
Pulling the provision of documents is not worth it, because even if the baby appeared on the 29th, the deduction will be provided for the entire month worked. This should be taken into account by accountants. A tax deduction for a child is provided from the month he was born, subject to the timely provision of documents.
New place of work. What do you need?
If an employee has come to a new place of work and wants to receive a tax deduction, then in addition to the documents listed above, he needs to provide a certificate in the form of 2-NDFL. This is necessary so that the accountant can enter information about the employee's salary from the beginning of the year. This allows you to prevent the deduction from reaching the threshold of 350 000 rubles.
Also, if an employee takes a new position in the same month in which he was dismissed from another organization, the accountant can check whether deductions for this month have already been accrued to him.
The deduction code 126 and 127 in the certificate 2-NDFL can be seen directly below the column with the employee's income. Dividing the sum of each of them by 1400, you can find out how many months the deduction was provided. If an employee has already received his benefit for the given month, then the employer sets deductions only from the next month. If there was a break between places of work, then a refund for this period is not provided.
It is noteworthy that if an employee managed to change several jobs in a year, he will have to take certificates from each of them. Even if it was worked there for several days. The income must be summarized and entered into the base in order to correctly calculate taxes.
Otherwise, for those who want to use the tax deduction code 126 and 127, you need to bring a copy of the birth certificates of children, as well as a personal statement. It is also worth bringing certificates from places of study if the child is over eighteen years old.
Code 127. Features
A deduction code with number 127 indicates a benefit for those who have a second child. Provide it to those who transmit a package of documents. The amount of deduction in this case coincides with the amount of benefits for the first child and amounts to 1,400 rubles.
This means that every month an employee who is entitled to a benefit saves 182 rubles. The limit for using this deduction is the same as for the first child, namely 350,000 rubles.
Until the end of 2016, the designation number 115 corresponded to this code; it had all the same parameters. This code is also used by those parents whose second child has reached the age of majority, but has not yet reached the age of twenty-four years and is still studying full-time.
Documents for deduction. Code 127
Tax deduction codes 126 and 127 are similar, therefore they have a similar set of documents. However, for the latter, it will be somewhat wider.
If the employee has two children under eighteen or full-time students, he must provide the following documents:
- Personal statement. In one you can enter both children at once.
- Birth certificate of both children, as well as copies thereof. It is worth noting that even if the child already has a passport, it is the certificate that is provided, since it is in this document that there is information about the parents.
- Certificate in the form 2-NDFL, if the employee gets a job.
It is also worth noting that if the first child no longer fits the category of persons for whom the deduction is granted, then you still need to bring a certificate for him. This confirms the fact that the child on whom code 127 is used is the second.
What if an employee did not receive a benefit?
It happens that the employee did not know that he was entitled to any personal income tax benefit. Probably, he was either not informed about this or did not provide timely documents. In this case, he can return the amount that he has paid excessively to the tax authorities.
For this, it is necessary to provide a package of documents to the tax service. The deduction code 126 and 127 in the 3-NDFL declaration will also have to be indicated if it is under this value that the appropriate deductions pass.
It is also necessary to take a certificate from the place of work in the form 2-NDFL, as well as copies of birth certificates of children, if necessary, and a certificate from their place of study. It is worth remembering that you can return the amount only for the last three years. That is, in 2017, you can get money for 2014, 2015, 2016.
The deduction codes 126 and 127 in the declaration will sit automatically if you specify them in a specific tab in the program provided by the Tax Service website. If the return is carried out in a few years, then there will have to be several declarations, separately for each year.
Standard deduction per child in 2017 provided to his parents on the basis of the application. Standard deduction code per child it is necessary to put down 2-NDFL in the certificate when submitting tax reports on personal income tax to the Federal Tax Service. In our article we will understand what are standard deductions and which codes correspond to them.
Why are standard tax deductions necessary?
Standard deduction makes it possible to reduce income by a certain amount in order to withhold income tax to a lesser extent. This right is enshrined in Art. 218 of the Tax Code of the Russian Federation. The employee independently decides to exercise this right to him standard deductions or not. He himself is obliged to provide accounting documents for standard deductions for children in 2017 and write a statement so that the employer - tax agent correctly accrues and withholds income tax taking into account standard deductions. This obligation lies with the taxpayer - an individual, and not with the accountant, and the employee should decide for himself whether he wants to use standard deduction or not.
Limit for standard deduction for children in 2017 next year - 350,000 rubles. If the income calculated on an accrual basis since the beginning of the year exceeded this limit for standard deduction for children in 2017g., then from this month the right to use the deduction is lost.
Deduction codes for children in 2017
The employer submits certificates 2 to the tax inspectorate PIT - deduction per child in 2017 g. is indicated on a separate line for each employee.
Until 2016, this had to be done once a year - no later than April 1 of the year following the expired tax period. Since January 1, 2016, such reporting is quarterly, for it in accordance with paragraph 2 of Art. 230 of the Tax Code of the Russian Federation as amended by the Federal Law of 02.05.2015 No. 113-FZ provides a new form 6 PIT - deductions per child in 2017 g. reflected in p. 030 sect. 1.
Approved income codes and codes are used to fill out the certificate. standard deductions for children in 2017 d. In the situation under consideration, this tax codes for children 2017 g. (they are given in the order of the Federal Tax Service of Russia dated 10.09.2015 No. MMV-7-11 / [email protected]):
Who is granted the standard deduction |
Amount of standard deduction, rub. |
Standard deduction codes in 2017 |
Parent, spouse of the parent, adoptive parent: |
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for 1 child; for the 2nd child; on the 3rd and next child; |
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Guardian, trustee, adoptive parent, spouse of the adoptive parent: |
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for 1 child; for the 2nd child; on the 3rd and next child; for a disabled child under 18 years of age and, if he is studying full-time, from 18 to 24 years old, with a disability group I or II |
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Double size for single parent, adoptive parent: |
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for 1 child; for the 2nd child; on the 3rd and next child; for a disabled child under 18 years of age and, if he is studying full-time, from 18 to 24 years old, with a disability group I or II |
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Double the size of the sole guardian, trustee, adoptive parent: |
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for 1 child; for the 2nd child; on the 3rd and next child; for a disabled child under 18 years of age and, if he is studying full-time, from 18 to 24 years old, with a disability group I or II |
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To the parent, when the 2nd parent refused the deduction: |
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for 1 child; for the 2nd child; on the 3rd and next child; for a disabled child under 18 years of age and, if he is studying full-time, from 18 to 24 years old, with a disability group I or II |
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To the foster parent when the 2nd parent refused the deduction: |
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for 1 child; for the 2nd child; on the 3rd and next child; for a disabled child under 18 years of age and, if he is studying full-time, from 18 to 24 years old, with a disability group I or II |
Consider the features of the provision standard deduction to an employee using an example.
How to provide a deduction for children
The organization accepted N. N. Gukova to work since April 2017. To provide standard deduction Gukov wrote a statement to the children and attached copies of the birth certificates of 3 children, as well as a copy of the certificate of disability to one of them. The 1st child (aged 19) graduated from high school and while not studying anywhere, the 2nd child is 14 years old, and the 3rd child, who is 8 years old, is disabled. Gukov submitted a certificate from the previous place of work on the income received, which amounted to 180,000 rubles. At a new place of work, he was paid a salary of 60,000 rubles.
In this case, Gukov will not receive a deduction for the first child, however this child will be taken into account in the order of birth of the children.
Gukov will be provided standard deduction in the amount of 16,400 rubles: 1,400 rubles. - for the 2nd child, 3,000 rubles. - for the 3rd child and another 12,000 rubles. for the 3rd child, as he is disabled.
In June, the amount of accrued income from the beginning of the year will amount to 360,000 rubles. (180 000 + 60 000 x 3 months), and the deduction this month will not be provided. Subp. 4 p. 1 art. 218 of the Tax Code sets the marginal income at which it is possible to apply standard deduction for children, in the amount of 350 000 rubles. Thus, in a year the employee will save 16,400 x 5 months. x 13% \u003d 10 660 rub. This is the amount that would be withheld if the employee did not apply for standard deduction.
Sometimes it’s that children's standard deduction returns from the tax office. This is possible if the employee did not present the necessary documents to the accountant after the calendar year deductions for children he was not provided. Then he should contact the tax office on his own, and on the basis of the tax return and supporting documents it will be possible to return the overpaid tax. You can apply for a tax refund to the tax office within 3 years from the date of payment (paragraph 7 of article 78 of the Tax Code of the Russian Federation).
In conclusion, we recommend that the accountant immediately collect all the necessary documents for confirmation standard deduction on children. Moreover, every year the employee does not need to write a new application, unless the circumstances of receipt of this change standard deduction.