Child tax deduction in 2021

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

Taxpayers in the Russian Federation can enjoy a social benefit - a tax deduction for children, which will be valid in 2021 in the established amount and limit. We will tell you how much the parents' income is deducted, as well as about changes in tax legislation.

Accrual rules

Any parent, guardian or adoptive parent who has Russian citizenship and income subject to 13% personal income tax can apply for a tax deduction for the child. List of persons who are entitled to benefits:

• minors;
• disabled children of I and II groups up to 18 years old;
• children under 24 years of age who receive education on a full-time basis.

The legislation establishes up to what amount of parental income a tax deduction for children can be issued in 2021. Annual earnings should not exceed 350 thousand rubles.

For example, a citizen earns 50 thousand rubles a month. He will be able to receive compensation for a minor only for 7 months, that is, up to an amount equal to the limit of 350 thousand rubles.

Features of the benefit:

• applies to every month from the date of obtaining the right to issue;
• if there are several children in the family, then deductions can be made according to their number;
• Both parents can receive the benefit.

The deduction is made out:

1. At the place of work. To do this, you need to present a birth certificate of a minor, since the amount of the deduction is determined taking into account the sequence of birth of children.
2. In the Federal Tax Service. At the beginning of the year, an application for the previous reporting period is submitted. Payment is calculated for all months. Thus, in 2021 it is possible to apply for the 2020 deduction.

Amount of the reduction in taxable income

Amounts from which the benefit is calculated:

• for 1 and 2 children - 1,400 rubles;
• for 3 or more minors - 3,000 rubles;
• for a disabled person if he is an adopted child - 6,000 rubles;
• for a disabled person if he is brought up by his own parents or adoptive parents - 12,000 rubles.

These are the amounts for 1 month. They are charged a monthly tax of 13%.

Both parents can count on benefits, so families often receive double compensation. A double deduction is also due to one parent if the other has waived his right in writing.

For children born in or out of a new marriage, the deduction will be made in accordance with the chronology of birth for each parent.

If the taxpayer has several sources of income, the deduction is due only from the profit that is taxed with personal income tax at 13%.

Tax amendments

The State Duma is considering a draft law on amendments to tax legislation. It is about changing the amount of the tax base for the formation of a social tax deduction for the educational process of a minor. If the project is approved, the changes will take effect in 2021.

In accordance with Article 219 of the Tax Code of the Russian Federation, a taxpayer can reduce the NB for personal income tax by the amount spent on the education of a child under 24 years of age. Under 18 years of age - if the taxpayer is a guardian.

Deduction restrictions: expenses must not exceed 50 thousand rubles. A taxpayer will be able to receive a maximum of 6,500 rubles as a reduction in the tax base.

The legislator states that the amount of the deduction included in the Tax Code has not been indexed for more than 10 years. In addition, the limit of the tax base does not correspond to the real costs of education of minors.

The State Duma initiated an increase in the NB indicator for registration of benefits for a child's education:

• 80 thousand rubles - from 2021-01-01;
• 100 thousand rubles - from 2022-01-01.

These amounts are provided for each child in the family. Also, the legislator plans to raise the amount of social tax benefits for education, necessary treatment, non-state pensions and other payments.

But this does not apply to:

• compensation for the education of children of taxpayers who have the right to apply for a matriculation;
• deduction for the cost of expensive treatment - more than 120 thousand rubles.

Provided by article 219 of the Tax Code of the Russian Federation.

Requirements for an educational institution to receive a deduction

Educational institutions must meet a number of simple conditions:

• have a license to conduct educational activities;
• the Charter of the organization must contain a clause on the right to provide educational services.

If all the requirements are met, you can apply for an education benefit at the following institutions:

• kindergarten;
• general education and specialized institutions (for example, in a sports or music school);
• automotive school;
• technical school;
• higher education institution;
• training courses;
• training center, etc.

The deduction can only be made for educational services. Often, kindergartens, schools and training centers accept children on an extended basis on a paid basis. The financial authorities assert that such expenses are not subject to tax deductions.

When concluding an agreement with an educational institution, it is important to indicate commercial services in it. The payment documents must also state what the money was paid for.

This is important to determine what funds were spent on the educational process and what - on additional services that are not included in the tax deduction for children in 2021.

Summarize

1. Families with children can qualify for a tax deduction. You can issue it at your place of work or at the Federal Tax Service.
2. The privilege applies to children under 18 years of age, disabled persons of I and II groups until the age of majority, and children up to 24 years of age, if they are studying full-time.
3. The State Duma is considering a bill, according to which it is proposed to increase the tax base for registration of a deduction for the education of children. Now this parameter is equal to 50 thousand rubles. In other words, the cost of a child's education should not exceed this amount.
4. The legislator initiates an increase in the tax base in 2021 to 80 thousand rubles and in 2020 - to 100 thousand rubles per month.