Tax deduction per child in 2020
The State Duma Committee on Budget and Taxes is considering a bill to amend tax deductions per child. Since January 2020, the government plans to increase the size of the tax deduction for families with minor or disabled children. In addition, it is proposed to amend the Tax Code of the Russian Federation in terms of increasing the threshold for taxable personal income tax, to which a deduction is provided.
The principle of tax deduction for children today
Under Russian law, families with children are entitled to certain tax benefits. So, officially employed Russians with children can reduce the income tax deducted monthly from their salaries. The legislation provides for a standard tax deduction, which is due to each parent of a minor child (s). This means that a certain amount is deducted from the "dirty" salary before calculating personal income tax. That is, income tax will be less, and "net" wages more.
Article 218 of the second part of the Tax Code of the Russian Federation establishes the standard deduction:
- 1400 rubles - for the first and second child (1400 for each);
- 3000 rubles - for the third and each of the subsequent children;
- 6000 rubles - to guardians (trustees) for children with disabilities under 18 years of age, students studying full-time up to 24 years;
- 12,000 rubles - to parents and adoptive parents for children with disabilities up to 18 years old, students studying full-time up to 24 years.
The amounts of deductions given are relevant in 2019. From January 1, 2020, their size may change upwards.
While the bill on amendments to the Tax Code of the Russian Federation is under consideration, benefits for families with children are provided according to the norms in force since 2016. In addition to age restrictions, there are limits on the amount of income for a calendar year. The preference in the form of a tax deduction ceases to act as soon as the total amount of income from the beginning of the year exceeds 350 thousand rubles. That is, the reduction of the taxable amount will be made every month, before the annual income does not exceed the limit established by law. Starting from the new calendar year, the benefit is automatically renewed.
The standard of living in Russia for ordinary citizens over the past 5-6 years has fallen markedly. The most difficult financial situation is for families with young children and children with disabilities.
What will change in 2020
At the initiative of a group of deputies, led by the leader of the Communist Party Gennady Zyuganov, a bill was developed to amend the Tax Code of the Russian Federation, in terms of standard tax deductions for children. People's representatives turned to the chairman of the State Duma with a proposal, within the framework of the national program to reduce poverty, to increase the amount of tax deductions from January 1, 2020.
According to the document, if approved by the Federation Council, tax deductions will change as follows:
- for the first-born - 2500, instead of the previous 1400;
- on the second - 2500, instead of the previous 1400;
- on the third and each subsequent - 4500, instead of the previous 3000;
- guardians (curators) of a disabled child under 18 years old, students studying full-time up to 24 years old - 8000, instead of the previous 6000 rubles;
- parents and adoptive parents for a disabled child up to 18 years old, students studying full-time up to 24 years old - 12,500, instead of the previous 12,000 rubles.
In addition, the bill provides for an increase in the threshold set for income tax on annual income. Deputies proposed to increase the limit to 400 thousand rubles. The initiative group that developed the draft law explains that such measures are necessary to implement the tasks set by the president in the May decrees of 2018. The national project to reduce the number of poor Russians is designed for the period up to 2024. Along with measures of social policy, inflation continues to "eat up" the incomes of citizens. Therefore, it is so important to reduce the tax burden on families with children, MPs explain.
If the bill passes the approval of all the competent authorities, it will come into force on January 1, 2020. According to approximate estimates of economists, as a result of innovations, regional budgets will lose about 30 billion rubles. In the explanatory note to the bill, such a reduction in incomes is proposed to take into account how real participation of the regions in the implementation of the Decree of the President of the Russian Federation on national goals to reduce the poverty of families with children by at least two times.
According to official figures, large families are currently the largest category of poor in Russia. The more heirs in the family, the more deprivation and the greater the risk of falling below the poverty line. According to statistics, about 22 million Russians are considered poor today.
How to apply for a benefit
A tax deduction is made at the place of work. As a rule, a package of documents for appointment is accepted by specialists of the salary bureau. It is required to write a statement to the head of the organization with a request to provide a child deduction. It is also necessary to provide a document confirming the right to preference:
- birth certificate (adoption);
- disability certificate;
- certificate from the educational institution (for children over 18 years old);
- Marriage certificate.
This can be done immediately after the birth of the baby. For example, simultaneously with the registration of maternity allowance and maternity leave. In the event that the parent is the only one, it is necessary to provide a document confirming this fact. Under the law, such a parent has the right to a standard deduction in double value.