Social tax deductions
Social tax deductions are provided to cover part of the expenses incurred by individuals for social needs: charity, education, medical treatment, non-state pension provision and voluntary pension insurance. A taxpayer has the right to reduce the income received by amounts that are actually spent in the tax period for these purposes.
Social tax deduction in connection with charitable expenses is provided in the amount of documented and actually incurred expenses, but not more than 25% of the amount of income received in the tax period. It should be noted that in the concept of the amount of income received in the tax period include all incomes of the taxpayer, taxable at a rate of 13%.
Charity expenses for obtaining a social tax deduction should be made only in cash to organizations financed from the budget:
• organizations of science, culture, education, health, social security;
• for the needs of physical education of citizens and the maintenance of sports teams for physical culture and sports organizations;
• to educational and preschool institutions;
• Donations are taken into account for religious organizations implementing their statutory activities.
A social tax deduction in connection with expenses for the education of children is provided when the taxpayer parent of his children under the age of 24 years is educated or the taxpayer is the guardian, tutor for the training of his charges under the age of 18 years. The deduction is granted in the amount of actually incurred and documented expenses, but not more than 50,000 rubles. for each child in the total amount for both parents. The conditions for granting a tax deduction are:
• a license from an educational institution;
• training only in full-time;
• Training in the United States.Social tax deduction in connection with the costs of own training, medical treatment (other than expensive types of treatment), non-state pension provision, voluntary pension insurance is provided to the taxpayer under the following conditions:
• if treatment services are provided directly to the taxpayer and (or) members of his family by medical institutions located and providing such services in the territory of the United States;
• if medical facilities are licensed;
• if the taxpayer paid for non-government pension provision and voluntary pension insurance in his favor and in favor of his or her close relatives;
• If payment for the cost of treatment and purchased medicines and (or) payment of insurance premiums were not made at the expense of employers.
The deduction is granted in the amount of actually incurred and documented expenses, but not more than 120,000 rubles. in general for all expenses incurred. In the case of spending on expensive types of treatment for themselves or their close relatives, a social tax deduction is granted in the amount of actually incurred expenses.
Since the total amount of social tax deduction for all varieties is limited, the taxpayer has the right to independently determine which expenses will be taken into account when granting a deduction.
Example . The taxpayer spent 80,000 rubles in the reporting period. for their treatment and 100 000 rubles. on voluntary pension insurance. The total amount of deduction can not exceed 120,000 rubles. A taxpayer can choose several options for calculating costs when obtaining a social tax deduction:
• fully take into account the cost of treatment - 80 000 rubles. and part of the cost of insurance - 40 000 rubles.
• fully take into account the cost of insurance - 100 000 rubles, and part of the cost of treatment - 20 000 rubles.
• partially take into account the cost of treatment - 60 000 rubles. and partly for insurance - 60 000 rubles.
• Other options.
Social tax deductions can be granted, provided that the expenses are incurred by the taxpayer at the expense of the income of the tax period in which the expenses are actually incurred. These deductions are provided by the tax authority at the end of the tax period in which the taxpayer submits the application and the tax return, with the exception of the deduction for expenses for voluntary pension insurance. Such a deduction can be provided by the tax agent before the end of the tax period. If deductions can not be realized in the current tax period, then the unused balance is not transferred to the next tax period.
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