The income of an individual is subject to taxes. Every citizen knows this. However, not everyone is aware that part of the funds can be returned back to you, and also not everything is subject to taxation. What amount is tax-free? In each individual case, different numbers are taken. It all depends on what kind of transaction the citizen performed, as well as for what amount. However, traditionally income is taxed at a rate of thirteen percent. But you can also receive benefits that will be useful for everyone to know about.
Income. What may be taxable
The income of an individual is, in the broad sense of the word, money or other material assets, minus the expenses incurred by the citizen. There is such a thing as income tax. This is a certain amount of deduction that a citizen pays to the state.
Taxable income includes the following types:
- Income from the sale of any property that was owned by a citizen for less than three years.
- Income from the main place of work and from part-time and part-time work.
- From renting out your property to other persons.
- Winnings of various kinds, including lottery winnings.
- Other income of a citizen of the country.
Non-taxable amount of income tax 2020 per employee
The provisions of paragraph 4 of Article 343 of the Tax Code apply to tax obligations arising from January 1, 2020. Recalculation of income subject to taxation before January 1, 2020 is carried out within the limitation period established by Article 48 of the Tax Code.
To receive the above tax deductions, an individual must submit to the tax agent documents confirming the right to apply these deductions and these tax deductions will be applied sequentially in the order in which they are reflected in paragraph 1 of Article 342 of the Tax Code.
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Tax rates: from thirteen to thirty-five
The tax on the amount is paid as a percentage. Each type of activity has its own rate. It is from this that the tax amount is calculated directly.
Thus, the most common rate of thirteen percent applies to the following types of income:
- Wages and other accruals related to the work activity of an individual.
- Income from the sale of various types of property.
A rate of fifteen percent is applied to withhold taxes on income received from dividends of an organization located in Russia.
A tax rate of thirty percent is applied to labor or other income-generating activities for non-residents of the country. The maximum rate of 35 percent is applied in cases where a citizen has received a win.
Personal income tax payment deadline
Payment of personal income tax by ordinary citizens consists of three stages: filling out the declaration, sending the declaration and payment. This applies to income for which no one has paid tax. The employer deals with taxes on official salaries. If you work under a contract, the customer - individual entrepreneur or company - will become your tax agent and withhold tax from your income.
Certificate 6-NDFL is a report that declares the following information:
- Amounts of income of individuals.
- Calculated and withheld personal income tax amounts.
- Dates of receipt of income.
- Dates and deadlines for tax withholding and remittance for the reporting period.
6-NDFL is submitted to the tax office every quarter. It shows all the income from which the tax agent withheld personal income tax: employee salaries or income under civil contracts. For example, if a company hired a designer to develop a website, in 6-NDFL it is required to indicate his income and the tax on it.
The data in 6-NDFL is indicated for all individuals, and not specifically for one person.
Certificate 2-NDFL is submitted to the tax office by the tax agent once or twice a year for each individual who received income. It contains all the information about the taxpayer and tax agent, the amount of income received and tax withheld. 2-NDFL consists of the following sections:
- Tax agent information.
- Information about the recipient of the income.
- Income taxed at a certain rate.
- Standard, social and property tax deductions.
- Total income and tax amounts.
Declaration 3-NDFL is a document that citizens submit to the tax office on their own. 3-NDFL is needed to report income, pay tax or receive tax deductions.
If you sell a house that you have owned for a year, or rent out an apartment, you are required to report on personal income tax - fill out a declaration and submit it to the tax office. You must report your personal income tax by April 30 of the following year. This only applies to declaring income - there are no time limits for deductions.
You can submit a document to the inspection in paper form in person, through a representative or by registered mail with a list of the attachments. If you submit in person, you need two copies: on the second, the tax office will put a mark with the date of receipt and return it to you. If by mail, the filing date of the return is the date the letter was sent.
As for the time limit for being in possession of property, previously it was at least three years. However, this did not apply to income received from the sale of securities, as well as from the sale of property that the individual entrepreneur directly uses in his business.
Currently, the situation has changed and a different taxation procedure has been established. The following income is subject to tax exemption:
- from the sale of real estate or shares in such property;
- from the sale of other property of the taxpayer.
The new article 217.1 introduces the concept of “minimum maximum period of ownership of an object.” This concept is used in the Code and is applied in the general rule. To summarize, the proceeds that a taxpayer receives after selling real estate may be exempt from tax if he owned it for that minimum period or longer.
There are now two such minimum terms: three years and five years.
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Three years are established for the following cases:
- ownership of real estate was acquired through inheritance or on the basis of a gift agreement from an individual who is a close relative or family member;
- ownership was established on the basis of privatization;
- the taxpayer, who is the annuity payer, received title under a life maintenance and dependency agreement.
For other cases, a longer period will have to be applied - at least five years.
Subjects of Russia have the right to reduce the five-year period to at least zero. They have the right to do this for all taxpayers or certain categories and certain real estate objects.
Wage. How is it taxed?
Everyone knows that taxes are required to be paid on income received from work. What amount of salary is not taxed? There may be several options here:
- Receiving financial assistance.
- Availability of tax deductions.
- Compensation payments.
In all of the above cases, the employee has the right to retain a certain amount, on which no tax is charged.
In other cases, the employee’s salary is subject to taxation at a rate of thirteen percent.
Tax free amount
All these charges are subject to personal income tax.
But there are also exceptions. Amounts of payments not related to work activities are not subject to taxation: financial assistance (up to 4,000 rubles), alimony, scholarships, pensions, redundancy benefits, as well as business trip expenses. There is no tax-free amount for personal income tax. From January 1, 2012, the tax deduction directly for the employee was completely abolished. Therefore, 13% of all income A increased the tax deduction for children. Tax Code of the Russian Federation - Article 218. Standard tax deductions 1. When determining the size of the tax base in accordance with paragraph 3 of Article 210 of this Code, the taxpayer has the right to receive the following standard tax deductions: 4) a tax deduction for each month of the tax period applies to a parent, spouse ( spouse) parent, adoptive parent, guardian, trustee, adoptive parent, spouse of an adoptive parent who is supporting the child, in the following amounts: from January 1, 2012: 1,400 rubles - for the first child; 1,400 rubles - for the second child; 3,000 rubles - for the third and each subsequent child; 3,000 rubles - for each child if a child under the age of 18 is a disabled child, or a full-time student, graduate student, resident, intern, student under the age of 24, if he is a disabled person of group I or II. A tax deduction is made for each child under the age of 18, as well as for each full-time student, graduate student, resident, intern, student, cadet under the age of 24. The tax deduction is provided in double amount to the only parent (adoptive parent), adoptive parent, guardian, trustee. The provision of the specified tax deduction to the only parent ceases from the month following the month of his marriage.
Material aid. Are taxes taken?
Financial assistance, as mentioned above, is paid in full, without any deductions in favor of the state. What amount per year is tax-free? Financial assistance is not taxed until its cumulative total for the year reaches four thousand rubles. This is described in the Tax Code. This includes payments that the company makes in accordance with the collective agreement or other internal documents of the employer.
That is, if an employee received financial assistance in the amount of five thousand rubles, then he must pay only 130 rubles, that is, the tax is taken from only one thousand. In a situation where an employee received other financial assistance during the year, for example, in the total amount of thousands of rubles, and then four more were issued to him, then in this case one out of four thousand will also be taxed.
However, it is worth noting that some financial assistance is not taxed at all, for example, for the funeral of an employee. The same is true with the amount given for the birth of a child. What amount is not taxed in this case? Not less than fifty thousand rubles, but per child. That is, the amounts given to both parents are taken into account.
Non-taxable amount of income tax 2020 per employee
Otherwise, you do not need to pay it. In addition, previously individuals independently paid personal income tax on winnings of any size, but now the entity organizing the competition or prize draw must withhold it (however, only on income exceeding 15,000 rubles). From winnings in the amount of 4,000-15,000 rubles. Personal income tax, as before, is paid by its recipient (subclause 5, clause 1, article 228 of the Tax Code). Without these restrictions, personal income tax is withheld from other income in kind (for example, from anniversary bonuses for rent received at the enterprise). When taxing the wages of those serving correctional labor, withholding alimony, compensation for harm caused to health, damage due to the death of the breadwinner or a crime committed, it is 70. In practice, there are often situations when the accrued amount of personal income tax is greater than wages.
But there is also a list of payments that are not subject to income tax. Financial assistance, alimony for the receiving party, pensions, scholarships, one-time, state and severance benefits for staff reduction or compensation for damage from injury and other compensation payments are not subject to personal income tax. Payment of income tax from wages, rates and determination of the tax base are regulated by Articles 210, 217, 218-221, 224 of the Tax Code of the Russian Federation.
Tax deductions for children and for yourself
There is such a thing as tax deductions. What amount is tax-free? There are deductions for children. Depending on the child’s social status, whether he is being raised by a single parent, or whether he has a disability, the amounts may change. In general, the first child under eighteen years of age, raised in a two-parent family, saves the parent 182 rubles a month, which helps to get about two thousand a year in hand. To receive a deduction, you must provide a number of documents to the accounting department, for example, a child’s birth certificate.
However, there are limits. Thus, the cumulative income for the year should not exceed 350 thousand rubles. So, if a parent receives thirty-five thousand, then by the tenth month he will lose the right to this benefit.
Tax deductions per employee are less common. They can be used by combatants, as well as disabled people of the first and second groups. For example, the latter have the right to a deduction in the amount of five hundred rubles. This means that they save 65 rubles per month. The amount is not large enough, but overall it also helps to save money.
Who is completely exempt from paying?
To be legally precise, we should not be talking about tax exemption, but about applying a tax deduction, which can be as much as possible equal to the value of the property sold. The deduction amount is indicated when filing a tax return.
The main thing that determines whether a real estate seller will pay the full tax or receive a so-called exemption or deduction is the period of ownership of the property.
How long can it take to sell real estate without paying personal income tax?
Those who owned the sold property for more than three years will receive a tax deduction in the amount of the cost of housing. In other words, it will be completely exempt from income tax. (clause 17.1 of article 217 of the Tax Code of the Russian Federation).
In accordance with the amendments of 2020 (clauses 10 and 11 of Federal Law-382 dated November 29, 2014), this period was extended to 5 years with some exceptions. Thus:
- 3 years of ownership are exempt from tax for those who privatized an apartment, received it as a gift or inheritance.
- A 5-year period is established for everyone else, in particular those who purchased an apartment for money.
What is a non-taxable amount?
When calculating the tax on income from the sale of real estate, the concept of “tax-free amount” is also taken into account. This term implies that when selling an apartment or any other real estate, an amount of more than 1 million rubles is taxed and, accordingly, a smaller amount is not taxed. This applies to any real estate and is not related to the period of ownership. Thus, all citizens can take advantage of this deduction, regardless of how many years the sold housing was owned.
It turns out that persons who sold real estate for less than 1 million rubles in value are completely exempt from paying tax. Even if such property has been owned for less than 3 years.
Compensation payments
What amount is not subject to income tax in employee accruals? This may include compensation payments. For example, if an employee underwent a medical examination because he was employed in hazardous work, then the amount will be returned to him in full, excluding taxes.
The same applies to payments related to maternity. A woman receives her maternity benefit, a lump sum benefit, as well as the so-called “vacation pay” when taking leave to care for her child in its pure form. No deductions are made to the tax service from these amounts.
The situation is similar with payments for dismissal of an employee. Compensation for several months when the employee is on the labor exchange is not taxed.
Salary income tax - personal income tax in 2020
- alimony (assigned by a court decision)
- compensation payments (travel allowance or severance pay, for example)
- financial assistance not exceeding 4,000 rubles. in 12 months (for a wedding, for a vacation) due to the death of a relative or an emergency;
- B&R and unemployment benefits;
- scholarships,
- pension payments,
- subsidies and grants to peasants and farms for their creation and operation, issued since 01/01/2012;
- residential premises and land plots received free of charge from the property of the state or municipality.
In addition to purely technical amendments (changes in encoding from 15201027 to 15202024), a substantive change was made to the new form - columns were added for the legal successor of the reorganized company (liquidated company), as well as new codes (places for submitting the calculation of tax amounts and forms for reorganization and liquidation of the organization).
Buying and selling a car. Subtleties
It is clear what amount is not taxed when working. However, sometimes a citizen has the opportunity to purchase or sell property, for example, a car. There are some nuances here related to the tax service.
For example, a car buyer does not receive any profit; on the contrary, he spends his money. In this case, he does not have to pay any taxes on the purchase. However, if the car is used, then both parties to the transaction must pay transport tax. At the end of the year, each party must pay the amount for the period during which they owned the car.
The seller of the vehicle, in turn, receives income. Therefore, he must submit a declaration no later than April thirtieth of the year following the year of the transaction. The rate in this case is used as for income from labor activity, that is, at the rate of thirteen percent.
How much is taxable when selling a car? Indeed, there are subtleties that help you save on selling a vehicle. Thus, transactions with a car whose cost is less than 250 thousand rubles are not taxed. In the case when the car costs more, this amount of funds is subtracted from the amount, and tax is removed from the balance.
As mentioned above, a vehicle that has already been in use for more than three years is not subject to tax at all. The same applies to a car that is sold at a loss, that is, it was purchased for an amount greater than received upon sale. In principle, it becomes clear what amount is not subject to tax when selling a car. In general, 250 thousand.
Under what conditions is the seller entitled to a deduction?
Tax legislation defines the basic criteria that taxpayers must meet in order to qualify for a tax deduction.
Citizenship
The Tax Code divides taxpayers into 2 categories: residents and non-residents of the Russian Federation. Non-residents are all persons staying on the territory of the Russian Federation for less than 183 days a year. These can be both foreigners and citizens of the Russian Federation who permanently reside in another country. Thus, even citizens of the Russian Federation can be considered as tax non-residents. In this case, the object of taxation is the income of individuals:
- tax residents - from sources in the Russian Federation and abroad;
- tax non-residents - from sources in the Russian Federation.
This means that in terms of taxation, the tax status of the person and the location of the property are of key importance. Citizenship itself does not play a role. Thus, a non-citizen of the Russian Federation, being a tax resident of the country, is obliged to pay personal income tax when selling real estate . It will be 13%. A citizen will have the right to tax deductions prescribed in the Tax Code of the Russian Federation.
Employment
Having a job and its length of service also do not matter when receiving a tax deduction from the sale of property. In this case, the size of the deduction will be determined not by the availability of work, but by the period of ownership of the apartment and its cost. If the property is more than 3 years old or the sale price is less than a million rubles, the unemployed will be completely exempt from paying 13% personal income tax.
Buying and selling real estate
What amount is not taxed when buying or selling an apartment? It all depends on who the citizen is, the buyer or the seller.
When selling an apartment that has been owned for more than three years, you should contact the tax authorities with an application. This will help avoid taxes altogether for the seller. What amount is tax-free on a reverse sale? The tax is levied on an amount that exceeds one million rubles.
The buyer of the property has every right to receive a tax deduction on the amount of two million rubles. To do this, he also needs to contact the tax office. After submitting the declaration, he can choose two options: receive the amount directly from the tax office or reduce his taxes at his main place of work. However, the amount of the refund for the year cannot exceed the amount of tax paid at the main place of work. That is, if a citizen pays taxes for the year in the amount of ten thousand rubles, then only this amount will be returned to him.
Knowing tax rules helps you save money. That is why it is best for a citizen to refer to the Tax Code before buying or selling. Also, the employee must be aware of his rights, demanding that the employer fulfill them. To do this, you need to familiarize yourself with the possibility of obtaining tax deductions, and also provide all documents to the accounting department. The employee can also independently calculate whether the tax is calculated correctly.
Legislative framework
All taxes that individuals pay on their income are combined into a broad group called personal income tax - personal income tax. According to Art. 224 of the Tax Code of the Russian Federation, the rate of such tax is 13% for citizens of the country. It's called general. There are certain situations in which the percentage can be reduced to 9% or increased to 35.
Meanwhile, the legislation provides for cases when a person is either completely exempt from paying taxes or pays only a small amount. This is called a reduction in the tax base. This reduction occurs through the use of a tax deduction system.
The essence of using a tax deduction is that some part is subtracted from the amount that should be taxed. In this case, the tax is paid on the balance. The entire procedure for applying tax deductions is described in the Tax Code of the Russian Federation. In particular, in articles 218 to 221 you can find out who has the right to a deduction and what size it can reach.
In tax legislation, deductions are divided into four large groups:
- Standard.
- Social.
- Property.
- Professional.
In the case of the sale of real estate, property deductions are of interest. Information about them is presented in detail in Art. 220 Tax Code of the Russian Federation. When selling real estate, a citizen can claim a tax deduction.
How to get a?
The right to deduction is indicated when filling out the income tax return. To submit it, fill out form 3-NDFL. To submit a declaration and receive a deduction, you must:
- Fill out the declaration.
- Prepare documents confirming the fact of sale of real estate (purchase and sale agreement).
- Prepare documents to confirm the right of deduction. If the taxpayer claims a deduction based on expenses incurred, then attach all financial documents confirming these expenses (checks, bank statements, etc.).
- Submit a declaration of income with documents confirming the right to deduct. You must contact the Federal Tax Service no later than April 30 of the year following the sale.
- Pay tax. This must be done no later than July 15 of the year following the sale.
How many times is this acceptable?
There are no restrictions on the use of the right of deduction when selling real estate. At the same time, you can use the tax-free amount of 1 million rubles only once a year. That is, if a citizen sells 2 apartments in 2019, then it will be possible to reduce income by 1 million only from the sale of one of the objects.
How to reduce?
Often the tax on income received can be reduced. There are several ways to do this, permitted by law.
How to get a property deduction for a sold vehicle that was owned for less than 3 years?
Many people are interested in how long it will take to sell a car without making a full payment. You can take advantage of the property tax deduction when selling a car when you sell a car that has been owned for less than three years. This is stated in Article 220 of the Tax Code of the Russian Federation. Then 250 thousand rubles are deducted from the sale price of the car. and 13% is calculated from the resulting difference. This will be the amount of personal income tax payable.
Receiving a deduction is carried out according to a certain scheme:
- collection of necessary documents: certificate of income 2-NDFL, agreements for the purchase and sale of cars;
- filling out a declaration;
- submitting it to the tax office;
- Desk inspection of submitted documents by an inspector.
After making a decision to provide a deduction, the taxpayer receives the right to use it, i.e. he pays reduced tax. The tax is calculated as follows.
If the car was sold for 300 thousand rubles, then 250 thousand rubles are subtracted from this amount: 300 – 250 = 50 thousand rubles. The resulting difference is the tax base.
The amount to be paid is determined from it: 50 * 13% = 6.5 thousand rubles. The declaration is submitted in the next calendar year after the sale of the car by April 30, and the tax is paid by July 15 of the same year.
Now you know how to get a tax deduction if you sell a car before 3 years of use.
Decrease in income
Article 220 of the Tax Code (clause 2) allows, when determining the amount of tax, to use not a tax deduction, but to reduce the income received by the amount of expenses. This option is used when the purchase price of the car is less than the sale price.
Then the tax base will be the difference between them. For example, a car was sold for 300 thousand rubles, but it was bought for 370 thousand rubles. Then the car owner must pay tax in the amount of: (370 – 300) * 13% = 9.1 thousand rubles.
Which option should I choose?
To reduce the tax base, you can choose only one of the above options. You cannot use both a tax deduction and a reduction in income for the amount of expenses. Before using one of them, it is better to calculate which one is more profitable.
In the above examples, tax amounts of 6.5 thousand rubles were obtained. and 9.1 thousand rubles. when buying a car for 370 thousand rubles. and its subsequent sale for 300 thousand rubles. Therefore, in this situation it is more profitable to use a property deduction. If the car was sold for 340 thousand rubles, then the tax calculation is as follows: (340 – 300) * 13% = 5.2 thousand rubles. Therefore, in this situation, it is preferable to use the “income minus expenses” method.
