Tax incentives for retirees in 2021

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

Elderly people are among the most vulnerable segments of the population, so the state is trying in every possible way to raise their standard of living, providing various indulgences. One of these types of government assistance is tax exemptions for retirees in 2021, which are implemented within the framework of tax legislation.

Types of tax preferences for retirees

The legislation of the Russian Federation establishes several types of tax benefits for people of the older generation:

• for personal vehicles;
• to pay contributions for property tax;
• to pay land tax;
• tax deduction for the acquisition of property;
• exemption from payment for overhaul services.

Land tax incentives

Federal preference is granted to persons receiving an old-age pension:

• men over the age of 60;
• women over the age of 55.

Pensioners are exempt from paying land tax on a plot of land that does not exceed 6 acres. Earlier, a limiting bar was set to reduce the payment in the amount of 10 thousand rubles. This type of benefits can also be used by citizens of pre-retirement age.

The preferential tax program is only valid for plots of up to 600 m². The remaining land is taxed on a general basis.

Property tax relief

After the introduction of a new mechanism for calculating the tax on real estate, which implies the use of the cadastral value, the tax burden for pensioners turned out to be too large. In this regard, it was decided to completely exempt older people from paying this type of fees, but only if the following requirements are met:

• the norm applies only to one object of immovable property owned by a pensioner;
• the preference cannot be applied to several objects;
• the rest of the property is taxed on a general basis.

A pensioner can apply for property benefits on the following conditions:

• real estate is not elite and does not cost more than 300 million rubles;
• a pensioner has a partial or full triad of rights to living space (disposal, ownership, use).

The objects of preferential taxation include:

• parking place;
• garage;
• country house with an area of no more than 50 m²;
• residential building of individual construction;
• apartment;
• room;
• premises used for professional creative activities.

Transport tax incentives

Preferences are set by regional authorities, so the mechanism for granting them may differ. For example, in Moscow there are no special privileges specifically for the elderly, but they are provided for different categories of citizens, which may include pensioners.

In the metropolitan area, the following are exempt from the car ownership tax:

• invalids and veterans of the Great Patriotic War;
• Heroes of the Soviet Union and Russia;
• former concentration camp prisoners who got there as a minor;
• Cavaliers of the Order of Glory I, II, III degrees;
• participants in armed conflicts, including persons who have received a disability group as a result;
• liquidators of the Chernobyl accident;
• persons who have become disabled as a result of conducted nuclear tests.

Discounts on payment of personal income tax

The decision to abolish personal income tax was made due to the difficult financial situation of pensioners. The tax is not levied on the following types of income:

• fixed payments;
• pensions:
• social allowances.

Also, payments from an organization where a citizen worked until reaching retirement age or quit due to disability are not taxed. At the same time, the amount of compensation is limited to an amount of 4 thousand rubles per year.

These support measures include:

• medical service;
• spa treatment (rest);
• gifts dedicated to significant dates and holidays;
• purchase of medicines;
• other types of financial assistance.

Tax deduction

Persons who have reached retirement age are entitled to a tax deduction from expenses related to such items of expenses:

• construction of a real estate object;
• the acquisition of real estate.

The benefit is provided regardless of the fact of employment, that is, both working and non-working pensioners can use it.

The only difference is the mechanism for calculating the amounts to be deducted:

1. A working pensioner can exercise the right to deduction in the year it became available. If the established amount of the deduction exceeds the volume of payments for personal income tax, the missing amounts can be received in subsequent reporting periods.
2. Unemployed citizens receive the residual amount of the deduction for the last three years preceding the year of registration of the triad of rights to real estate.

A deduction (up to 260 thousand rubles) from the acquisition of real estate is provided only once during a lifetime.

If a pensioner, on the contrary, received income from the sale of a real estate object, he is obliged to pay tax in accordance with the norms of the Tax Code of the Russian Federation.

How to apply for tax incentives

To receive a tax benefit, you must submit a package of documents to the Federal Tax Service, which includes:

• statement;
• passport of a citizen of the Russian Federation;
• TIN;
• pension certificate (if any);
• cadastral and technical documentation for the property;
• a certificate confirming the triad of rights to property.

Outcomes

Persons who have reached retirement age enjoy a number of privileges provided by tax legislation. The amendments made to the Tax Code of the Russian Federation provide for a significant reduction in the tax burden for pensioners by abolishing certain taxes and fees. To apply for benefits, you must submit to the authorized body a package of documents confirming the right to receive them.