An insurance policy plays an important role in financial protection of the insured and his family from unforeseen situations and accidents. According to the Tax Code of the Russian Federation, citizens who are taxpayers and have entered into a life insurance contract on a voluntary basis can return part of the funds they paid in the form of taxes on insurance premiums through a personal income tax deduction, provided that the insurance policy is issued for a period of five years or more. For persons who entered into a contract before 2015, there is also the possibility of an income tax refund if the contract has not yet expired.
Policyholders have the right to return up to 13% of the amount of insurance premiums they paid. Since the maximum deductible contribution amount is RUB 120,000 per calendar year, the maximum allowable deduction is RUB 15,600 per year. If the amount of insurance premiums paid by the policyholder exceeds RUB 120,000 per year, the balance cannot be carried forward to the next year.
Documents required to obtain a tax deduction
To receive a deduction, a policyholder using the services of Sovcombank Life should contact the tax office and provide the following documents:
- a document confirming payment of insurance premiums;
- application for a deduction;
- a copy of the license of JSC IC "Sovcombank Life";
- a copy of the voluntary life insurance agreement;
- copy of passport and details for transferring deductions;
- tax return in form 3-NDFL;
- certificate of relationship (to pictures) if the insurance contract is concluded in favor of a spouse, child or parent);
- certificate from place of work 2-NDFL.
Documents confirming payment can be a receipt for payment of the first installment (with pictures) in form A7), as well as a bank statement indicating:
- FULL NAME. the policyholder;
- numbers of his policy/insurance contract;
- the amount of the contribution paid;
- name of the insurance company (to pictures) JSC IC "Sovcombank Life").
Where can I get a tax deduction?
At the tax office
The policyholder can apply for a deduction to the tax office, where he will have to submit a 3-NDFL tax return, an application for a personal income tax refund and an application for a tax deduction.
At the employer's
From January 1, 2022, policyholders can return part of the premiums paid through their employer, provided that they purchased the policy at their own expense and the insurance premiums were withheld from their salaries. The policyholder must receive a tax notice confirming the right to a deduction, and then provide it along with an application for a deduction to the employer.
Who applies for state compensation?
The following persons can receive this compensation:
- physical;
- legal.
They must be residents of the Russian Federation and stay on the territory for at least 183 days in 12 months. Exceptions include citizens serving military service abroad and other social categories.
Residents must receive income in the country and pay 13% personal income tax. If you do not belong to the category of working citizens and live on unemployment benefits, therefore, you do not pay this contribution to the treasury, and you are not entitled to a deduction. Businessmen operating under specialized tax regimes are excluded from the list of applicants.
Now let's see in what situation Russian residents can claim compensation.
When purchasing real estate intended for residential purposes
When purchasing a real estate property in which you intend to live, you are required to pay tax to the state treasury, therefore, you also claim a deduction. You need to become the owner:
- cottage;
- apartments;
- townhouse;
- country house;
- rooms;
- plot of land for construction work.
Purchasing real estate is one of the reasons to claim rights to monetary compensation
The upper limit of the amount that will be deducted in this situation is 2,000,000 Russian rubles. If the price is higher, you will not be able to get above it. If it is less, then you can supplement the limit through the next purchase of residential premises. Since the tax rate is 13%, the maximum refund amount is 260 thousand, but only for the case when housing is purchased without using a loan from a credit institution. Otherwise, you can apply for interest coverage on funds received on credit for the purchase, no more than 13% of 3,000,000.
How to receive income tax on the purchase of an apartment?
In this article we will look at how to apply for a tax refund for an apartment yourself, what papers to prepare and what documents are needed.
We present a list of documents required to be presented to the tax service to receive compensation.
Table 1. List of documents required by the tax service to provide a deduction
| Document |
| Application from the taxpayer |
| Forms 2-NDFL and 3-NDFL |
| Papers confirming the payment(s) |
| Home purchase or shared ownership agreement |
| Certificate of transfer and acceptance of premises |
| Targeted loan agreement (if any) |
| Confirmation from a credit institution regarding interest payment (if any) |
Sample of filling out certificate 2-NDFL
Video - Property deduction when purchasing real estate in 2017
When receiving higher education at a university on a paid basis
When paying for university tuition, when a student receives education on a paid basis, his parent or relative paying the bills receives a deduction.
Please note the most important conditions! Education must be full-time, and the student’s age must not exceed 24 years.
In addition to deductions for studying at a university or institute, parents of students attending commercial classes receive a deduction:
- kindergartens for preschool children;
- private schools, etc.
When taking advanced training courses at an educational institution that has a license to operate, compensation is also expected to be paid. Adults can claim a deduction for children in the amount of no more than 50 thousand rubles. For themselves, they receive no more than 13% for 120 thousand paid in total in 12 months of the reporting period, while the amount also includes social expenses, such as paying for treatment and contributing money to insurance.
In this case, the inspectorate expects to receive:
- statement;
- completed forms 2-NDFL and 3-NDFL ;
- agreement between an educational institution and a person;
- license;
- certificate issued to full-time students;
- receipt for payment for completing training.
Income tax refund for studies: how to get your money back
How to apply for an income tax refund for education, who is entitled to receive this benefit and how much can you expect? More details about this in our article.
During treatment
You can also receive monetary compensation for the costs incurred to pay for:
- medical procedures;
- medicines;
- research in laboratory conditions.
It is also possible to reimburse treatment costs at public expense
It is necessary to note that the taxpayer must purchase medications according to the prescriptions of the doctor conducting the treatment; the state will not pay for unauthorized purchases. Therefore, keep the main proof of your right to receive money: doctor's prescriptions. In addition, you need to keep receipts for medications or receipts for payment for medical procedures.
In addition, you can apply for compensation if you purchase medicines to treat your husband/wife or minor children. You can also include insurance payments for medical care, yours or your relatives’. We present a list of required documents to be submitted to the tax service:
- a license to conduct medical activities from the organization where the treatment took place;
- application from the taxpayer;
- forms 2-NDFL and 3-NDFL ;
- a photocopy of the contract for the provision of medical services;
- medical certificate confirming receipt of treatment;
- payment documents for doctor services or purchased medications.
By the way, this deduction format is called social. It also includes taxpayers who donate money to charitable organizations. They can receive a deduction equal to a quarter of the income they received during the 12 months of the reporting period. The same column includes pension contributions of a funded nature, taking the form of insurance contributions and provision of a pension not from the state.
How to get a tax deduction for treatment?
This article will help you figure out how to prepare documents for a tax deduction, who is entitled to it, and also what amount can be returned.
Sovcombank Life programs, within which you can get a tax deduction
- Life insurance: “Prestige +”, “Life Protection +”, “Life +”. Life insurance programs from Sovcombank Life provide insurance compensation in the event of the death of the insured or the diagnosis of a critical illness, as well as loss of ability to work. In addition, in the event of death or disability, Sovcombank Life will assume the obligation to pay further contributions under the program.
- Savings programs: “Prestige +”, “Guarantee +”. The “Prestige +” program guarantees payments in the event of the death of the insured or his loss of ability to work, while the “Guarantee +” program provides payments in cases of death of the insured, loss of his ability to work, as well as the return of contributions in the event of the death of the insured as a result of illness. Moreover, the programs will be continued at the expense of Sovcombank Life in the event of the death of the insured person or his loss of ability to work, regardless of the reason.
- Pension insurance. Under the “For Life” program, the client independently determines the amount of insurance compensation. In the event of the death of the insured before the end of his working life, Sovcombank Life will pay the beneficiary insurance compensation and investment income, if any. In addition, if the insured person dies due to illness before retirement age, the beneficiary will receive back all contributions paid and investment income, if any, provided by the program.
Tax deduction: how many times can you use it?
According to the norms established by law, you can receive a tax deduction several times in your life in most areas, for example:
- for studying at a university;
- receiving education in a commercial kindergarten or school;
- receiving medical care;
- purchase of medicines, etc.
How many times in your life can you use the property deduction?
In fact, for these areas, the compensation due is “reset to zero” every 12 months, that is, you can claim them annually. However, things are different with the deduction for purchasing a home. It gives you one cash limit for life. It turns out that you can use it either once for the entire amount, or several times until the due deductions are received in full.
Before 2014, the rules were in force according to which compensation for the purchase of a home under a targeted loan could only be applied for once, and only for one real estate property. After the onset of 2014, the situation changed and now compensation can be obtained for several real estate properties acquired after the entry into force of this legislative initiative.
According to legislative acts, the date on which housing was officially purchased is considered to be:
- the day indicated in the extract from the Unified State Register of Real Estate regarding the registration of ownership of the property;
- the day when the housing was transferred to the shareholder taking part in the construction.
If the date of purchase of the property fell before 2014, and you received a deduction for it, it turns out that even if the amount was not spent, you are not entitled to deductions for another property purchased from 2015 to 2022.
Let's give an example. In 2009, you purchased an apartment for half a million and, according to the law, received a refund in the amount of 65,000. According to the law, the taxpayer is entitled to a large amount, but since the first apartment was purchased before December 31, 2013, you cannot claim the balance.
As for the payment of interest on a targeted loan taken before the end of 2013, it had no restrictions, but it could only be used for one purchase. This is because the division between property and interest deductions did not exist before 2014.
Let's give an example. In 2011, you purchased a small apartment in Moscow and used monetary compensation from the state for it. Then, in 2012, a second apartment in the suburbs was purchased with a mortgage. When you applied to the tax office for repayment of interest on the loan, you were refused because the right to compensation had already been used, that is, it had been exhausted due to the possibility of its one-time use.
However, if instead of 2012 you decide to purchase a home in 2015, you also have the right to claim interest coverage on the mortgage, since you only used the standard deduction.
After the first day of 2014, legislative changes regarding obtaining deductions for real estate came into force. Now its amount is 2,000,000 units of Russian currency, which can be received in installments until the due amount is paid.
Let's give an example. In 2016, you buy an apartment for half a million rubles and return the 65,000 due to you. Next year, you decide to buy a townhouse in the suburbs, paying 3,000,000 for it. So, for this residential property you can get 13% of the one and a half million balance, that is 195,000.
As for the payment of interest compensation, the format for their provision has also changed.
- It is separated from the main deduction for the costs of purchasing real estate and can be received regardless of its use.
- The relationship between this payment and the costs of purchasing real estate is not established.
- The maximum amount to be received is 390,000 (13% of 3,000,000).
Loan costs can be repaid by the state only once, for a single real estate property
Let's give an example. In 2016, you bought a townhouse at a cost of 8,000,000, for this you took out a mortgage for 6,000,000, on top of which you must pay 3,500,000 interest upon return. It turns out that for this purchase you can claim a deduction of 260,000 (13% of 2,000,000) and 390,000 to cover interest (13% of 3,000,000).
