How to get a tax deduction on expenses for voluntary life insurance. How to get a tax deduction on a life insurance contract
Having voluntarily insured his life and health, the taxpayer for three years has the right to receive a social deduction (percentage of contributions paid) up to 15 600 rubles. An important condition is the identity of the beneficiary (beneficiary): if it is not the insured himself or his next of kin, then no deduction will be given. It is the beneficiary who is associated with the refusal to provide a tax deduction under the life insurance contract when buying an apartment on a mortgage, since in this case the bank is the beneficiary.
Tax deduction for voluntary life and health insurance
According to each one has the right to a social tax deduction after the conclusion of a life and health insurance contract and the payment of contributions under this contract within 120,000 p. What does it mean? If a person enters into an insurance contract, then he can reduce the tax base in the following reporting period:
- In the amount paid to the insurer of contributions, if this amount does not exceed 120 000 rub.
- In the amount of 120,000 rubles, if the amount of contributions to the insurer for the previous period was more than 120,000 rubles.
The tax base for calculating income tax (PIT) is defined as the sum of all income received by an individual in the form of money or in kind. Reducing the base by the amount of contributions means that 13% of the amount of these contributions will be returned to the taxpayer. That is, up to 15,600 rubles will be returned in a year.
The state cannot refund more taxes than was paid. If the amount of tax deduction in the current period is greater than the amount of taxes paid, then the difference will be returned as a tax deduction in the next period.
Examples
Ivanov earns 50,000r per month, and he has no other income. The taxable base for the year will be 600,000 rubles, and the annual personal income tax - 78,000 rubles (6,500 rubles per month). Last year, Ivanov insured his life and paid contributions to the insurer for a total of 60,000 rubles. What deduction will Ivanov get?
- In January, the tax base will be reduced by 50,000 rubles. The returned personal income tax will be 6500 rubles.
- In February, the tax base will be reduced by the remaining 10,000 rubles. The return of personal income tax will be 1300 rubles.
- Starting in March, Ivanov will pay the full amount of tax.
Petrov with a salary of 50,000 rubles and the absence of other income paid last year insurance premiums in the amount of 150,000 rubles for life insurance. The tax base for such an insurance contract can only be reduced by 120,000 rubles.
- In January and February, the tax base will be reduced by 50,000 rubles. The tax deduction for each of these months will be 6,500 rubles.
- In March, the tax base will decrease by the remaining 20,000 rubles. The returned tax will be 2600 rubles.
- Starting in April, Petrov will pay the full income tax.
Sidorov earns 8,000r per month and has no other income. The tax base for the year will be 96,000 rubles, the annual personal income tax - 12,480 rubles. Under a voluntary life insurance contract, he paid 120,000 rubles. How will the tax be returned in this case?
- From January to December this year, the tax will be fully refunded. The return of personal income tax will be 1040 rubles per month or 12 480 rubles per year. The tax base decreased by 96 000r \u003d 12 * 8000r.
- The remaining amount of 120,000 - 96,000 \u003d 24,000 rubles will be carried forward to the next year.
- From January to March of next year, the tax base will also decrease by 8000r monthly until the deduction is fully refunded.
- From April next year, Sidorov will pay personal income tax in full.
Tax deduction under a life insurance contract when buying an apartment with a mortgage
The social tax deduction applies to life and health insurance contracts, the beneficiary of which will be either the insured himself or his immediate family member (Article 219 of the Tax Code). The closest relatives include spouses, parents or adoptive parents and children (family or adoptive).
In the insurance contract concluded during the execution of the mortgage, the beneficiary usually indicates the credit institution that issued the mortgage loan.
If earlier there were disputes on this issue, which were sometimes resolved in favor of the borrower, it put an end to this issue. You cannot receive a tax deduction under a life insurance contract when buying an apartment on a mortgage, if the beneficiary under this contract is a credit institution.
Life Insurance Tax Credits
Beneficiary | Amount of Contributions | Amount of taxes paid | The amount of personal income tax to be returned |
Less than 120 000r | Less dues | All personal income tax for the year |
|
The policyholder or his relatives | Less than 120 000r | More Contributions | 13% of the amount of contributions to the insurer |
The policyholder or his relatives | More than 120 000 rub | Less dues | All personal income tax for the year |
The policyholder or his relatives | More than 120 000 rub | More Contributions | |
Credit organisation |
How to return a mortgage tax for life insurance on a mortgage loan?
Before applying for a tax deduction, you must make sure that the beneficiary under the insurance contract is the insured himself or his immediate family.
There are two ways to return the tax: on your own or at the place of work:
- If a citizen applies for a tax benefit himself, then he must collect documents at the end of the calendar year and submit them to the tax at the place of registration. This can be done on the website in your account.
- When applying through the employer, it is necessary at the end of the calendar year to transfer documents to the accounting department of the enterprise.
Sberbank life insurance income tax refund
Sberbank makes it possible to apply for a deduction with the help of a personal consultant. The consultant must submit scans or photographs of documents. The price varies depending on the package of services:
- Fill out an online application and get advice on filling out a declaration - 499 rubles.
- To receive a declaration filled out by a consultant and submit it to the tax authority on your own - 1499r.
- The consultant will transfer the completed tax return to the tax authority - 2999 rubles.
Documents for reimbursement of personal income tax on life insurance
List of documents for obtaining tax benefits on the basis of a life insurance contract:
- Notarized copies of the insurance contract and license of the insurer,
- Original and copy of passport
- Original and copy of TIN,
- Certificate of contributions paid (issued by the insurer),
- Payment documents,
- 3-personal income tax
- Deduction application,
- Documents confirming kinship with the beneficiary.
Russian law provides an opportunity to refund taxes that have been paid by taxpayers. In this case, initially, citizens still have to fulfill their tax obligations. The main task that is being implemented through financial compensation is to increase interest in social services.
To receive a certain part of the taxes paid back, it should be understood when such actions are permissible and what conditions should be fulfilled. An individual must invest in socially useful services. Subsequently, public authorities through tax deductions provide encouragement.
Citizens opportunities
Tax refund allows you to reduce the initial financial burden. There are severe restrictions at the current legislative level. Money is returned through the tax only if the procedure is carried out in accordance with existing requirements. Mandatory calendar year is used as the estimated time period.
Refunds are granted to individuals who have spent money for the following purposes:
- the purchase of an apartment or house in order to improve housing conditions;
- treatment;
- health insurance as well as life insurance;
- training;
- holding charity events.
From the very beginning of 2015, citizens can return a certain part of their expenses after submitting the established package of documents. This bill applies to contracts that were executed earlier than 2015, if their validity period continues. As a result, the question “is it possible to return the tax on life insurance?” a positive answer is provided.
How much is available for return
Refund of a certain amount is possible taking into account the contributions that were paid under the social insurance program. In this case, the maximum figure that appears in the calculations reaches one hundred and twenty thousand rubles. Authorities do not consider expenses exceeding the established border. Subsequently, government authorities consider the amount of financial compensation. It should be 13%, which is equal to personal income tax.
The opportunity to return thirteen percent. Thus, if the contribution for 12 months amounted to at least one hundred and twenty thousand rubles, 15,600 Russian rubles can be returned. Despite such a huge difference, many citizens of the Russian Federation successfully use financial assistance from tax authorities. If a resident of Russia spent more than one hundred and twenty thousand rubles, you can still return only 15,600. This is due to the use of the maximum border in calculating the tax return.
When calculating the additional amount, annual income should be taken into account, which should be taxed at the current personal income tax rate. If the considered value is less than the maximum amount, an individual calculation is carried out. The main goal is to record the thirteen percent that appear in the tax industry on an ongoing basis.
Their lives must take into account that when solving the tax issue, data are used only from 2015. Until the due date, there was no right to compensation. In this case, the date of conclusion of the document does not play any role.
The use of the deduction provides for the mandatory continued use of the policy. Otherwise, a reverse calculation is carried out by the citizen of Russia. An exception may be only those situations when the agreement was terminated for reasons not dependent on the will and wishes of the parties. Thus, in order to return the tax for life insurance, care should be taken to comply with the initial conditions and the continuation of the contract.
Documents for a refund
To obtain financial compensation, the applicable formalities must be observed. In this case, you need to take care of the availability of all necessary documents:
- tax return, which is prepared in accordance with form 3 of personal income tax;
- application for tax return in the form of personal income tax;
- a statement confirming the intention to conduct a tax deduction.
The remaining documents should be selected taking into account the individual situation. For example, in order to return the tax for life insurance on a mortgage, you must document the purchase of residential real estate, the use of a mortgage loan and registration of an insurance policy.
The tax inspector will mandatory check the submitted package of documents. Subsequently, a decision will be made regarding the refund of insurance funds. In some cases, an adjustment to the originally completed declaration is required. To successfully receive a refund, you must submit a full package of documents and make sure that all documentation is filled out correctly. Only if all the rules are followed can a financial issue be successfully resolved.
Tax deduction options
At the legislative level, there are two options for the development of the situation. Mandatory tax deduction must be received taking into account existing specifics.
Independent solution to the issue
A citizen is entitled to apply to the territorial office of the tax inspectorate on his own. Refunds will be made only at the end of the established tax period.
To expedite the procedure, you should write an application yourself and correctly fill out the declaration, submit the established list of documents. It may take up to three months to verify the documentation.
After verification activities, a tax deduction will be made within a month. At the same time, it is fashionable to receive financial compensation within three years. To receive money, you need to contact the appropriate institution.
The solution of the issue with the help of the employer
The policyholder pays tax contributions through the accounting of the employer company. In this regard, the employer can be involved in the process of obtaining a tax deduction. For financial compensation, it is not necessary to wait until the end of the tax period, but only one calendar year is allocated to resolve the existing issue.
An authorized person in the company should submit:
- a written statement confirming the intention to receive financial compensation for the money spent;
- copy of the contract, which confirms the life insurance of a citizen;
- additional documents related to.
If life insurance was carried out for relatives interested in such a service, the list of documents should be expanded. This is due to the need to confirm parental or marital relations. Only with appropriate confirmation can you get a tax refund if insurance was used for the next of kin or husband, wife.
After receiving a tax refund, the completed insurance contract must remain valid. Otherwise, the amount that was received by the insured is returned to the state budget.
The possibility of a refund for life insurance is an important measure for any region of Russia. This measure contributes to the successful development of the insurance industry and guaranteed protection of the interests of citizens.
The deduction can be used if insurance is paid for:
- for myself;
- for a spouse (including a widow, widower);
- for parents (including adoptive parents);
- for children (including adopted, under guardianship (guardianship)).
A social deduction can be obtained while fulfilling the following conditions.
1. The insurance contract is concluded with the insurance company for a period of at least five years. It was before 2015 or after - it doesn’t matter (letter of the Ministry of Finance of Russia dated June 17, 2015 No. 03-04-05 / 34970).
2. Insurance premiums paid at own expense and not earlier than January 1, 2015.
3. The person is resident and receives income taxable on rate of 13 percent (excluding dividends received). This may be, for example, salary, bonuses, payments under civil law contracts. Income taxed at other rates (for example, material gain), as well as income in the form of dividends received, cannot be reduced by deduction. In addition, it is not entitled to claim a deduction non-residents.
This is provided for in paragraph 1 of subparagraph 4 of paragraph 1 of Article 219, paragraphs 3 and 4 of Article 210 of the Tax Code of the Russian Federation and follows from the letter of the Ministry of Finance of Russia dated February 27, 2015 No. 03-04-06 / 10145.
Situation: can a person (resident) receive a social deduction for voluntary life insurance if the insurance contributions are paid by the organization in which he works?
Maybe, but only in two cases:
- the employer transferred to the insurance company the money withheld from the person’s salary;
- the employer paid the money to the insurance company, and the person subsequently reimbursed the company expenses from his salary.
One of the conditions for obtaining a social deduction is to pay insurance from your own funds. That is, a person must pay for insurance under the contract. If the organization has transferred the money, you cannot receive a deduction.
However, this prohibition applies only when the organization has paid for insurance at its own expense. If she transfers to the insurance company not her money, but the money withheld from the person’s salary, the right to social deduction is retained. In addition, a social deduction can be received by a person who will reimburse the organization for its costs of voluntary life insurance.
Such a conclusion can be made on the basis of subparagraph 4 of paragraph 1 and paragraph 2 of Article 219 of the Tax Code of the Russian Federation.
Situation: when does the right to deduction arise, if, at the request of a person, do employer pay contributions for voluntary life insurance? The organization withholds the amount of paid contributions in installments from a person’s salary.
The right to deduction arises on each repayment date of part of the debt.
After all, a person can receive a deduction only if he pays for the costs of insurance. This is one of the conditions for a deduction. In this case, the date of payment of insurance will be the date of repayment of debt to the employer. If such payment is made in installments, then the right to a deduction appears for each partial payment.
Moreover, the fact of such a payment must be documented (para. 2 subparagraph 4 p. 1 article 219 of the Tax Code). Such a document may be a certificate from the employer. A standard form of reference is not provided, so it can be compiled in any form. Check that the information contains the following data:
- details of the organization;
- the number and date of the application, on the basis of which the organization transferred the money;
- the number and date of the payment document by which the organization paid for the insurance;
- date of repayment of debt to the organization;
- the amount that was actually reimbursed to the organization in the payment of debt.
Such a conclusion can be made on the basis of subparagraph 4 of paragraph 1 and paragraph 2 of 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 May 5, 2008 No. ШС-6-3 / 331. Although this letter clarifies the application of the social deduction for non-state pension insurance expenses, it can also be applied to the social deduction for voluntary life insurance.
How much deduction can be obtained
The Tax Code provides a limit on the amount of all social deductions in the aggregate:
- on voluntary life insurance;
- on voluntary pension insurance (non-state pension provision);
- for treatment;
- on your training;
- to train a brother (sister);
- to pay voluntary pension contributions.
All these deductions in total cannot exceed 120,000 rubles. in year. Moreover, it does not need to include payment for expensive types of treatment, named in the list approved by the Government of the Russian Federation dated March 19, 2001 No. 201.
These rules can be expressed in the following inequality:
This procedure is established in paragraph 2 of paragraph 2 of Article 219 of the Tax Code of the Russian Federation.
For the composition of the maximum deduction and the amount of restrictions applicable in certain years, seetable.
There may be several options for the distribution of expenses to determine the maximum amount of deduction. Let's consider conditional examples.
Option 1.
For a year, a person had the cost of paying for voluntary life insurance. There were no other expenses (for treatment, training, and voluntary pension insurance).
Less than120 000 rub. per year (e.g.50 000 rub. in year) | The whole amount (e.g.50 000 rub. in year) |
In total, more than120 000 rub. per year (e.g.150 000 rub. in year) | 120 000 rub. |
Option 2
The person for the year had the cost of payment:
- voluntary life insurance;
- his treatment;
- your training;
- voluntary pension insurance contributions.
What expenses did a person have for the year | How much can be taken into account in the social deduction |
Total cost less120 000 rub., for example:
Total -90 000 rub. | The entire amount of actually paid expenses in each direction (for example, 90 000 rub. in year) |
The total amount of expenses is120 000 rub., for example:
Total -120 000 rub. | 120 000 rub. |
Total expenses exceed120 000 rub., for example:
Total - 180 000 rub. | Any optional expenses not exceeding the total120 000 rub. For example, the amount of the cost of paying insurance for voluntary life insurance, payment of treatment, and part of the cost of tuition (30 000 rub. + 80 000 rub. + 10 000 rub.) |
What happens if the deduction is received and the contract is terminated early
If a person used the deduction for voluntary life insurance, and then prematurely terminated the contract, then the tax will have to be returned to the budget. The insurance company will withhold and transfer tax to the budget. The basis for calculating personal income tax will be the amount of contributions paid during the contract period.
If the insurance company cannot withhold tax, it will send the relevant information to the tax office. And the person himself must come to the tax office, file a declaration and pay tax (subparagraph 4, paragraph 1 and paragraph 2 of article 228 of the Tax Code).
The exception to this, that is, when the tax due to early termination will not be withheld, are the cases:
- when the contract is terminated ahead of schedule due to force majeure circumstances;
- when a person did not receive a deduction for insurance costs.
In the latter case, the fact of non-receipt of the deduction must be proved. This can be done using the certificate from the tax office. Its form was approved by order of the Federal Tax Service of Russia dated November 12, 2007 No. MM-3-04 / 625, but it does not comply with applicable tax laws. Therefore, before approval of the updated document, the Federal Tax Service of Russia decided to issue such certificates in the recommended form, which is given in the appendix to the letter of the Federal Tax Service of Russia dated February 10, 2016 No. BS-4-11 / 2150.
Such rules are provided for in paragraphs 4-6 of subparagraph 2 of paragraph 1 of Article 213 of the Tax Code of the Russian Federation.
To get a certificate, submit to the tax office:
- statement on issuance of a certificate;
- a copy of the voluntary life insurance contract;
- copies of payment documents that confirm the payment of contributions under the contract.
An example of how to determine the amount of personal income tax that will be withheld during the early termination of a voluntary life insurance contract
E.I. Ivanova in 2015 entered into a five-year life insurance contract. In 2015, Ivanova paid out of her own funds contributions in the amount of 30,000 rubles.
In January 2016, Ivanova submitted a declaration to the tax inspectorate and claimed a social deduction in the amount of 30,000 rubles. In April 2016, the tax office returned Ivanova excessively withheld personal income tax in the amount of 3900 rubles. (30 000 rub. × 13%).
In June 2016, Ivanova terminated the contract with the insurance company. Termination of the contract is not related to force majeure.
Therefore, the insurance company must withhold Ivanovo personal income tax in the amount of 3900 rubles.
Is it possible to transfer the deduction balance to the next year
If the costs of voluntary life insurance (taking into account other social deductions) exceeded 120,000 rubles per year, then the balance cannot be transferred to the next year. Such a possibility is not provided by the Tax Code. 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.
You can apply for a tax deduction if you paid insurance premiums under a voluntary life insurance contract (s), if such contracts are concluded for a period of at least five years, concluded (concluded) with an insurance company:
- in your favor;
- in favor of the spouse;
- parents (including adoptive parents);
- children (including adopted, under guardianship (guardianship).
You can apply for a deduction both at the tax office and through the employer.
2. What is the size of the tax deduction?
The size of the tax deduction for expenses on voluntary life insurance is limited. It may not exceed 120,000 rubles per year. That is, 13% of this amount is returned. At the same time, it sums up with others (with the exception of deductions for the costs of educating children, charity and expensive treatment). Thus, 120,000 rubles will be the total amount for all social deductions that you can claim for the year.
3. What documents are needed?
- a copy of the contract with the insurance company (if information about the insurer’s license is not specified in the contract, then a copy of the insurance company’s license certified by the head and seal must be attached to the contract);
- copies of payment documents confirming payment of contributions (for example, cash receipts, receipts for cash receipts, payment orders, bank statements, etc.);
- copies of documents confirming the degree of kinship with the person for whom you paid contributions (marriage certificate, birth certificate (documents of adoption), child's birth certificate (documents establishing guardianship (guardianship) or adoption);
- certificate of the amount of accrued and withheld taxes for the year in which you paid contributions, in the form of 2-NDFL (requested from the employer).
4. How to get a tax deduction through an employer?
You can apply for a deduction through an employer (as opposed to a tax one) before the end of the tax period (calendar year) in which you incurred expenses. However, to do this, you must first confirm your right to a deduction to the Federal Tax Service by submitting the above documents and a statement confirming the taxpayer’s right to receive social tax deductions to the local tax office.
You can submit documents:
- online, using the service “Personal Account of a Taxpayer” on the website of the Federal Tax Service.
Within 30 days, the tax office must confirm your right to receive a deduction. Then you will need to submit to the employer:
- confirmation of deduction;
- free-form application for tax deduction.
The employer must provide you with a deduction starting from the month in which you apply to him.
If the employer withholds personal income tax without taking into account the tax deduction, he will have to return the amount of excess tax withheld to you. To do this, you will need to submit to the accounting department an application for the return of excessively withheld personal income tax, indicating in it a bank account to transfer the overpayment. The employer must transfer to you an excessively withheld amount within three months from the date of receipt of your application.
5. How to make a deduction through tax?
You will need:
- You can fill out the declaration as by hand by downloading form on the website of the Federal Tax Service, and taking advantage of a special program"Declaration" on the website of the Federal Tax Service. "\u003e fill 3-NDFL declaration (example of completion) for the period for which you want to make a deduction;
- make up Indicate in it the details of the bank account for transferring the overpayment to you. "\u003e Application (sample) on the refund of excessively paid tax.
The completed declaration, the documents required to receive the deduction, as well as the application for the return of excessively paid personal income tax must be submitted to the tax office at the place of residence. It can be done:
- online, using the service "Personal Account of the taxpayer" on the website of the Federal Tax Service.
Within three months from the day you submit the declaration and supporting documents, the Federal Tax Service will conduct a desk audit and send you a message about the decision. If a positive decision is made, the amount of excessively paid tax should be returned to you upon completion of the desk audit (if you submitted the application for the deduction along with the declaration) or within 30 days after the application was submitted.