How to provide an employee with a social deduction
To provide a social deduction, the accountant must receive from the employee:
1. Application in free form.
Example of a statement text:
“Based on clause 2 of Art. 219 of the Tax Code of the Russian Federation, I ask you to provide me with a social tax deduction for personal income tax in the amount of 60,000 rubles.
I am attaching to the application the notification received from the tax authority confirming the taxpayer’s right to a social tax deduction dated November 1, 2021 No. 8527-u.”
2. Notification from the tax authority.
Important: from January 1, 2022, the rules for issuing notifications will change. The employee will apply to the tax office to issue a notice of deduction, and the tax authorities will send the notice itself to the employer directly through TKS channels or by mail.
From the same date, new notification forms will come into force (order of the Federal Tax Service of Russia dated August 17, 2021 No. ED-7-11 / [email protected] ).
For now, until the end of 2022, tax authorities issue notifications in the form given in the letter of the Federal Tax Service of Russia dated January 16, 2017 No. BS-4-11 / [email protected]
An accountant does not need to check documents confirming the right to deduction. This work has already been completed by the tax office.
We talked in detail about the size of the social deduction, its types and other nuances in this article.
What property deductions for personal income tax does the Tax Code provide for?
Property tax deduction for personal income tax is a state benefit established by the Tax Code, which allows an individual to return part of the tax paid.
An individual has the right to use this when selling property or purchasing (constructing) housing. Property personal income tax deductions are dealt with in Art. 220 Tax Code of the Russian Federation.
Conventionally, these deductions can be divided into those related to the sale of property (here, the deduction provided in connection with the seizure from the taxpayer of a land plot and/or a property located on it for state or municipal needs stands out) and those related to the construction or purchase of housing (land plot) .
From what date should the deduction be provided?
Social deductions are always provided from the month in which the employee submitted the application and notification from the tax authorities.
Example: employee’s salary is 50,000 rubles. In November 2022, he submitted documents to the accounting department for a social deduction in the amount of 60,000 rubles. That is, the employee needs to reimburse 7,800 rubles (60,000 rubles * 13%).
Consequently, for November, the employee will receive his entire salary - 50,000 rubles. The accountant will not withhold personal income tax from income. This means that for November the employee will receive 6,500 rubles more than usual (50,000 rubles * 13%).
For December, the employee will receive 44,800 rubles. (50,000 - ((50,000 rubles - 10,000 rubles) * 13%)). Since part of the income in the amount of 10,000 rubles will not be subject to personal income tax, the employee will receive 1,300 rubles more.
As a result, by the end of the year the deduction will be received in full: 6,500 rubles + 1,300 rubles = 7,800 rubles.
What to do if the deduction is not fully selected
If by the end of the year the employee does not have time to select the entire amount of social deduction, then this is his concern; the accountant has fulfilled his duties. The employee will have to apply to the Federal Tax Service independently for the remainder of the deduction at the end of the tax period (calendar year).
If filling out the declaration yourself causes you difficulties, contact SberResolutions - we will help you prepare and send documents to the tax office right from home.
Apply for a deduction
WHAT EXACTLY HAS CHANGED
Previously, in order to receive a tax deduction, you had to do the following. Collect a bunch of supporting documents, get a certificate of your income from the accounting department, fill out a 3-NDFL declaration, and take it all to the tax office at your place of residence. You can estimate the time costs yourself.
In recent years, the procedure has become a little simpler. For example, when submitting an investment deduction, almost the entire package of documents was done by a brokerage company. And a trip to the inspectorate could be replaced by sending scans through the taxpayer’s personal account. But it would freeze periodically. And we had to go to the inspection office the old fashioned way with paper documents.
Now the Federal Tax Service has decided to radically simplify the process. The taxpayer will only need to fill out an application on the website. And the tax authorities will receive all the other information (about income received and expenses subject to deduction) themselves - through interaction with employers, banks and developers.
Moreover, the time frame for providing deductions will be dramatically reduced. Previously, you had to wait 4 months for it. According to the law, this is exactly how much was given to the tax authorities to first check all the documents and then send the money to the taxpayer. Now 45 days are given for this.
And finally, the icing on the cake. Deductions will be provided proactively. That is, if the tax office finds out that you bought an apartment, then a pre-filled application for a deduction will be automatically generated in the taxpayer’s personal account at the beginning of the year. All you have to do is enter additional information and click the “Submit” button.
Detailed information about the changes can be found on the website of the Federal Tax Service.
From what date should the deduction be provided?
But here the accountant faces certain difficulties. Property deductions are provided from the beginning of the calendar year, provided that the employee has already worked at the enterprise during this period. The date of submission of the application with notification does not matter.
For example, an employee who has been working for the company for a long time applied for a property deduction in November. It turns out that for the period from January to October, the employer excessively withheld and transferred personal income tax from his salary to the budget. Now the employee needs to return this money.
Moreover, you need to act according to the algorithm given in paragraph 1 of Art. 231 Tax Code of the Russian Federation:
- Within 10 days from the date of receipt of the application and notification from the employee, inform him about the fact of excessively withheld personal income tax.
- Receive an application from the employee indicating his account details for transferring funds by bank transfer.
- Transfer money to the employee within three months.
The money for the refund can be taken from the total amount of personal income tax that is due to be transferred to the budget for the coming periods, both for this employee and for other employees of the enterprise. Thus, it is possible to make a refund, for example, in the case when the amount of personal income tax to be withheld from the employee is less than the amount that needs to be returned.
Please note that if an employee pays alimony for minor children under a writ of execution, the accountant must withhold alimony from it before transferring the amount of the returned personal income tax to the employee's bank account. This requirement was approved by Decree of the Government of the Russian Federation dated November 2, 2021 No. 1908 and applies from November 11, 2022.
The process of obtaining a property deduction
Step 3. Submit documents to the tax office
Now that you have a completed 3-NDFL declaration and a certified package of documents, you must submit them to the tax office.
This can be done in several ways: Option 1. Submit documents to the tax office in person
The advantage of this method is that the inspector will personally check all the documents and tell you immediately if something is missing or requires correction.
At the same time, this method has two significant disadvantages: – it takes time; – the tax inspector may require additional documents that the taxpayer is not required to provide by law (in this case, you will not be given an official refusal, but simply will not accept the documents).
Option 2. Send documents to the tax office by mail
This method is provided for in paragraph 4 of Art. 80 of the Tax Code of the Russian Federation).
Benefits: – Time saving. Sending documents by mail takes less time than taking them personally to the tax office; – Communication with the tax authority will be formalized and less subject to the “opinion” of an individual inspector. You will be able to refuse a deduction or request additional documents only through an official request indicating the legal reason for the refusal/request;
Documents must be sent in a valuable letter with a list of attachments . To do this, you need to collect all the documents, put them in an envelope (no need to seal the envelope!) and make two copies of the postal inventory. In the inventory, list all the documents you are sending. An example of filling out an inventory is here: An example of filling out an inventory of documents to be sent by mail.
Remember - if you forgot to attach some documents or made mistakes in them, you will find out about it only after 2-3 months, that is, after the completion of the desk audit.
You can read more detailed information about the methods of submitting documents and their nuances in our article: How and where to submit a 3-NDFL declaration?
Step 4. Wait for the results of the tax inspection and payment of money
After the tax office receives the documents, it will conduct a desk audit. According to the law, the inspection must be completed within three months (Article 88 of the Tax Code of the Russian Federation). Based on the results of the audit, the tax office is obliged to send you a written notification within 10 working days about its results - the grant or refusal of a tax deduction.
After receiving notification of a positive result, you will need to submit an application for a tax refund (if you did not submit one along with your return).
Within one month from the date of filing an application for a tax refund (or one month after the end of the desk audit, if the application was submitted initially), the tax office must transfer the money to you (clause 6 of Article 78 of the Tax Code of the Russian Federation).
Note: If you applied for a tax refund along with your return, tax authorities often do not send a notification of the results of a positive audit, but simply transfer the money to the account.
Note: during the desk audit, you may be called to the tax office to clarify any controversial issues or provide original documents.
What to do if the deduction is not fully selected
A property deduction is a large sum of money, and it is not always possible to return it within a year. But the notice from the tax service is valid only until the end of the year in which it is issued.
If an employee plans to receive a deduction at the enterprise next year, he needs to contact the Federal Tax Service again and request a new notification.
Thus, to resume providing the deduction next year, the accountant will need:
- New notification from the Federal Tax Service (remember that in 2022 the tax authorities will send it directly to the company).
- A new application from the employee, which must indicate the amount of the remaining deduction.
What is a mortgage interest rebate?
The purchase of real estate entails the opportunity to apply the so-called “property deduction”. It is possible to make a tax refund on the purchase of an apartment in 2022 using a mortgage only for one transaction; to put it simply, such a right is given to a citizen once in a lifetime. If payment was made for a new apartment of one hundred thousand rubles, thirteen thousand will be returned as a deduction. Here we must take into account that there is a limit of 2 million rubles for calculating such a deduction. Even if the cost of housing exceeds this amount, the amount of the deduction is calculated based on two million rubles.
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If a mortgage loan was used to pay for housing, then a deduction can also be made for the interest paid (the maximum amount is three million rubles). Confirmation of the intended use of funds must be contained in the agreement concluded by the parties. According to the law, only those who purchase housing on the territory of the Russian Federation are given the right to deduct.
Thus, the benefit in question consists of two components. Typically, the order of their application is as follows: first of all, the tax is compensated for the cost of the purchased home, then for the mortgage interest paid to the bank.
