Is it possible to refund income tax on tuition?
Before considering such a procedure as the return of income tax for tuition, you should decide on the basic concepts that we will use in this article:
- PIT (in other words, income tax) is a tax on personal income. The amount that each person must pay to the state. It makes up a certain percentage of all profitable activities. Different types of income imply different interest rates. In relation to our article is 13%.
- Tax base - the entire amount of income that is taxed.
- Tax deduction - the total amount by which you can reduce the taxable base. And in some cases, this tool allows you to return a part of the tax already paid. This, in fact, will be discussed in this article.
State returns taxes?
Every person who works officially pays the state 13% of the salary. They can be returned back.But, of course, under certain conditions. This could include paid tuition, apartment purchase, voluntary retirement insurance or treatment. In this article we will consider the first option. So, the income tax return for tuition. It is entitled to every citizen who is studying for a fee in any institution that officially has the right to provide educational services. This may be a university, driving school, training courses and so on. The amount paid for tuition during the year reduces the tax base for a given reporting period, which means that this is the social tax deduction described. Here it is necessary to stop and clarify a bit. A citizen will not return the entire amount spent, but 13% of it. That is, if, for example, you have given 20,000 rubles for tuition in a driving school, then you will receive 2,600 rubles back (20,000 * 13%). The total amount of tax deduction may be 120 thousand rubles. This means that in the year the refund of income tax for tuition in the amount of not more than 15,600 rubles. So far it has been about reimbursement of their expenses. A legitimate question arises: “Is it possible to return the tuition tax if you paid for someone?” The answer will be positive.A social deduction is also due to parents, guardians, brothers and sisters, if they paid for the education of their relative. But in this case, it is possible to reduce taxable income only by 50 thousand rubles, and the amount of return, respectively, will be equal to 6500. And here there is one more limitation: if the payment is for training an adult relative, he must study full-time.
To use the tuition tax refund, the following documents and their copies must be submitted to the district tax office:
- Declaration of 3-NDFL.
- Certificate of income issued by the employer (2-NDFL).
- The license of an educational institution or other document confirming its availability.
- Agreement on the provision of services.
- Receipts of payment (they must be the name of the person who uses the deduction).
- The birth certificate of the child if payment was made by parents. Or other documents on guardianship or guardianship.
Documents on the return of income tax for tuition may be submitted within three years following the year of payment. It is also worth noting that this deduction is not a one-time, i.e.it can be obtained not once, but throughout the whole period of study, and even in different educational institutions. Thus, one person can partially compensate for their costs for the university, and for additional courses, and for postgraduate education.