Tax Deductions

Posted February 3rd, 2011 by Bryan

Tax deduction – a kind of tax benefits that are provided through the release of tax revenues. That is, from the amount you received income from which to pay the tax deducted a certain amount, and therefore this benefit is called “deduction”. And once the tax base is smaller, and the amount of tax also becomes smaller. Expenses of the taxpayer for their social needs (covering tuition fees, medical treatment, buying Housing ,) reduce the tax base for its income. The tax base – is that part of your income (eg salary) minus standard deduction to which you must pay tax to the budget. Accordingly, the fewer Your tax base – the lower the amount of tax you must pay. If you’re not an entrepreneur, then you usually do not do the calculation and payment of tax on your income, it deals with accounting organization where you work. During the year, you, for example, have spent their money to pay for medical services and in accordance with the Internal Revenue Code are eligible to reduce their tax base by the amount of the expenditures (that is – to use tax deduction). Your employer by law provide you with such benefits, so at the end of the year you need to self-declare their wish to take advantage of it by filing a tax return. Your Tax Inspectorate will check your documents to prove the expenses incurred, and if everything is in order, make a decision on reducing your taxable income and tax payable to the budget. But within a year accounting of your company already held from your taxes and pay into the budget, and on the basis of allocation made upon request of the tax inspectorate, the amount of tax payable has turned out less than that which with the employer hold you back! Simply put – you have formed the overpayment of tax.

That’s just the amount of the overpayment to you and back out of the budget by transfer to your savings account. Income tax on personal income (PIT), the Tax rf Code provides four types of tax deductions: 1. standard. Provided monthly by the employer through the release of a fixed amount of income (ie gross salary) from taxation ndfl.2. social. Subdivided as follows: Charity, health, education and retirement deductions. Available upon application by the individual that performed in the past year, the cost of their social .3. property. Divided into two Category: * deduction when selling property. Available upon request. Take advantage of this deduction may be the man who in the past year has sold any of its assets, its rightful ownership. For example, real estate or a share in it, car, land, etc. * deduction for the purchase of housing in Russia. Granted at the request of the taxpayer, who bought the house in the Russian Federation (applies the deduction once in a lifetime) and wants to partially reimburse the costs of its acquisition. 4. professional. Available to citizens: dealing with the private profession, earns revenue on contracts civil law and / or obtain copyright ., social, material and professional deductions apply only to income taxed at a rate of 13%. In respect of income taxed at different rates, these deductions do not apply! Can not benefit from the social deductions and individual entrepreneurs paying utii and / or using the simplified tax system (UPDF). Entrepreneurs applying the common system of taxation, can benefit from social deduction only in respect of income taxed at 13%.

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