Reimbursement of personal income tax when buying an apartment and paying for tuition

The laws of the Russian Federation establish the duty of each individual to pay taxes on income. However, there are a number of cases where the already withheld tax can be recovered from the budget. In particular, such an option is provided for when buying an apartment or training individuals.

Who and how can return the income tax

First of all, it is worth emphasizing that it is a question of tax refund, therefore, this law applies only to those who receive income taxed at a thirteen percent rate. That is, people living on benefits and other non-taxable payments, refund personal income tax when buying an apartment or training can not. The exception is pensioners, who have been entitled from 2012 to transfer tax refunds to the three preceding periods.

Under the tax code, personal income tax can be repaid in two ways: by repaying the tax already paid in the previous year, or by reducing the current income tax at one of the jobs.

In both cases, it is necessary to apply for a deduction in the tax at the place of registration, by completing the 3-NDFL declaration and providing a package of documents confirming the right to reimbursement.

It is impossible to refund personal income tax in cases when:

• Payment was made at the expense of the parent capital;
• The cost of buying an apartment or training was paid by the employer.

Property deduction when buying an apartment

The Tax Code establishes the right of any citizen to refund personal income tax when buying an apartment or other real estate. However, you can use it only once during your life, no matter how many apartments you have bought. The amount of compensation will be 13% of the value of the purchased property, and the cost of repair can be added to the immediate cost of the apartment if it was bought without finishing (under the contract) and interest paid for the targeted loan (including mortgage). However, the total amount of compensation can not exceed 260 thousand rubles (excluding interest). In other words, the deduction when buying an apartment can not be more than two million rubles. If the apartment cost less, the deduction will be granted only in the amount of its value, and the refund of personal income tax, respectively, will be 13% of it.

When buying an apartment for tax refunds, you should apply no later than three years from the date of the transaction, however, the indemnity itself does not have a statute of limitations, that is, the personal income tax will be returned (or not kept from current earnings) until it is fully refunded.

Social deduction for education

When paying for tuition, citizens also have the right to return 13% of the amount they paid. This can be done both with personal training, and when paying for the study of children under the age of twenty-four. An indispensable condition for obtaining a social deduction for study is the availability of a license from an educational institution, and if it is a question of paying for one's own studies, the day-time form of instruction is fundamental.

If a citizen receives a social deduction for himself, an annual refund of personal income tax for training is possible up to 15 600 rubles. When the deduction is given for the education of the child (brother, sister, guardian), the amount of the tax refund will be up to 6,500 rubles annually. That is, direct deductions will amount to 120,000 and 50,000, respectively.

To apply for social deduction it is necessary within three years from the moment of fulfillment of expenses. For example, for the payment of training in 2012, you must apply for a deduction no later than 2015.

In conclusion, it is worth noting that the possibility of obtaining property and social deductions does not depend on each other: in one tax period a citizen can refund personal income tax both for the purchase of real estate and for training. However, it should be borne in mind that the amount of social deduction is divided between the payment of treatment and physical education.