Child education tax credit24.05.2022
If your child receives education on a paid basis, then you can take advantage of the tax deduction provided by Russian law. The tax deduction for the education of a child is a partial refund of income tax (personal income tax – personal income tax). The greater the amount spent on paid education, the greater the amount of income tax refund. But at the same time there is a limitation: the tax deduction is provided only within the limits of 50,000 rubles spent on educating a child during the year.
To receive a social tax deduction for the education of children, a combination of three basic conditions must be met:
- the child receives full-time education;
- the child is under the age of 24;
- the parents of the child are employed.
Other conditions for obtaining a tax deduction for the education of a child, the size and calculation of the tax deduction, the necessary documents and other issues will be discussed in this article.
Return of personal income tax for the education of a child
The income tax refund for a child’s education is a social tax deduction. Such deductions from personal income tax are provided to citizens for expenses for needs that the legislation classifies as social needs. For example, these may be the costs of education, treatment, health insurance, etc.
The tuition tax credit should not be confused with the standard tax credit for a minor child. The last deduction is given to both working parents on a fixed monthly basis, regardless of additional conditions. The return of personal income tax for education allows you to return part of the income tax already paid by one of the parents in proportion to the costs incurred for the education of the child.
From the point of view of legislation, these are two completely different benefits in essence, and no one forbids using both deductions at the same time when such an opportunity arises. For example, if a child has not yet reached the age of majority, but is studying at a private school for a fee, his parents can use both the standard personal income tax deduction for a child under 18 years of age and the deduction from income tax for paid education.
Personal income tax benefits can be provided to parents not only when a child receives education at a university, but also when he or she studies at school, college, courses, and kindergarten. The basis for the deduction will be the contract for paid education concluded between the educational institution and one of the parents of the child. At the same time, it is necessary that the educational institution has a license to carry out educational activities. However, in such cases there are some nuances, and for their clarification it is best to contact the tax service.
As for the registration of a tax benefit for the education of children, you should not apply for it to the employer, but to the tax office. Read below to find out who can apply for a tuition tax deduction and what documents are required for this.
Who is eligible for the child education tax credit?
As a rule, the parents pay for the education of the child, and they also get the right to take advantage of the corresponding income tax relief. However, the law allows other persons to take advantage of the tuition tax deduction. The main thing is that they really bear the costs of educating the child and be employed, that is, they pay income tax. In addition, the fact of paid full-time education must be confirmed by an agreement between the citizen paying for the education and the educational institution. Thus, the following can apply for a tuition tax deduction:
- one of the parents or adoptive parents – in case of paid education of a child under the age of 24;
- guardian or trustee – in case of paid education of a ward under the age of 18;
- former guardian or trustee – when paying for the education of the former ward until he reaches 24 years of age;
- brothers and sisters (including half sisters) of a student under the age of 24 who pay for his studies.
Only one person, for example, one of the parents, can receive income tax relief for the education of a child. However, it is not necessary that the benefit be given to the parent who pays for the education. In this regard, there is an explanation of the Ministry of Finance. Legally married parents have common property, and on the basis of this it is allowed to receive a tax deduction for the education of a child not to the parent who actually pays, but to the second (but with the consent of the first).
What types of training serve as the basis for a personal income tax refund?
As already mentioned, the return of personal income tax is possible not only when studying at a university, but also when studying at other educational institutions, including:
- in preschool educational institutions (kindergartens);
- in secondary schools and lyceums;
- in children’s schools with specialization (music schools, art schools, sports schools);
- in vocational technical schools;
- in colleges;
- in organizations providing additional education services (for example, these can be driving schools, language courses, advanced training courses, etc.).
At the same time, an educational institution must necessarily have an appropriate license confirming its official status.
To provide a tax benefit, it does not matter what kind of education a child receives – first, second or subsequent. Also, the form of ownership of the educational institution does not matter: you can study in both a state and a private organization. A child can live separately from his parents – this also does not affect the return of personal income tax for education. During academic leave, the right to receive benefits is also preserved.
In addition, the law does not limit the territorial location of an educational institution. Therefore, a tax deduction can also be provided when a child is educated abroad. But in this case, all submitted documents must be officially translated into Russian, and the recipient of the tax benefit must be a resident of the Russian Federation.
Refund of personal income tax for training is not provided in the following cases:
- when the student gets married;
- if education is paid for by maternity capital;
- the child receives education outside of full-time education.
Terms of return of personal income tax for training
The tax deduction for the child’s education is available until the month of graduation or until the end of the calendar year in which the child turns 24 years old. You can apply for a personal income tax refund not immediately, but at least after the year in which the tuition fee was paid. If tuition is paid annually, then you will also have to apply for a benefit annually. How many times a year tuition is paid does not matter.
However, you can wait until graduation and apply for a tax refund for all past academic years. But it’s still not worth delaying: you can exercise your right to return the paid personal income tax within 3 years after the period in which the tuition was paid.
The entire amount of the income tax refund for the period when the parent was entitled to a tax deduction, but did not yet use it, is paid in a lump sum.
Child education tax credit
Determining the amount of the tax deduction is quite simple: the entire amount spent on the education of a child during the year is not subject to income tax. However, there are restrictions on the maximum amount of deduction per year. In particular, amounts exceeding the following will not be included in the social deduction:
- 50000 rub. per year when paid by parents;
- 120000 rub. in conjunction with other social deductions for the year when paid by brothers or sisters.
Therefore, the maximum amount of amounts returned per year at a 13% income tax rate will be equal to:
- 6500 rub. for each student child when providing a deduction to the parent;
- 15600 rub. for paying for the education of a brother or sister up to 24 years.
It is important to know that when determining the amount of the tax deduction, the date of payment is taken into account, and not the period of study for which payment is made. Therefore, paying for education for several years at once in one payment, you can exceed the limit of the returned personal income tax.
An example of calculating the amount of tax deduction for tuition
For example, a father paid in one sum for two years of a child’s education in courses, while each year of study costs 40,000 rubles. The following year, he filed for a tuition tax refund. At the same time, due to the presence of a limit, the maximum deduction amount will be 50,000 rubles, and not 80,000 rubles. Consequently, the father will return only part of the tax paid – 6500 rubles. for two years of study. If he paid for the courses annually, then the amount of return in each year would be 40,000 x 13% = 5,200 rubles. Thus, in two years he would have returned 10,400 rubles. from previously paid income tax.
Let the cost of education in each year exceed the established limit of deductions. For example, the father pays annually 100,000 rubles. for his son’s education. With annual payment, the amount of tax refund will also be limited to 6,500 rubles, as in the previous example. In this case, for two years, the tax refund will be 13,000 rubles. But if the father pays in one amount for two years of study at once, then both the deduction and his limit will be applied once. Consequently, for two years of study, the father will return only 6,500 rubles. paid taxes. Thus, it is more profitable for parents to pay for their studies in stages, at least once a year.
How do I get a tuition tax deduction?
We come to the most important question: how to get a refund of income tax for the education of a child? It’s simple: you need to collect the necessary documents and contact the Federal Tax Service at the place of residence. The general scheme of actions is as follows:
- The parent pays for the education of the child. At the same time, it does not matter what period of study is paid, and also the cost of study is fully or partially paid.
- At the end of the year in which the payment was made, the parent prepares the necessary documents and brings them to the tax authority at the place of residence.
- Upon confirmation of the right to receive a tax deduction, the overpaid personal income tax is returned to the parent. Refunds are made by transferring to a bank card or crediting to a bank account. It is also possible to credit the refundable amount against future taxes.
Sometimes parents do not want to wait until the end of the year when the tuition fee was made and receive a tax refund as soon as possible. In this case, you can apply for a deduction from your employer. For this you should:
- Write to the tax office at the place of residence a statement that the applicant wants to receive confirmation of his right to a social tax deduction for tuition. Tax officials will tell you how to fill out this application and what documents to provide.
- Then, within 30 days, the tax service issues a document confirming the right of the applied citizen to the tuition deduction.
- With this document, the parent applies to the employer and writes an application for early deduction in the name of the head.
- Further, when paying wages, the employer accrues personal income tax already with the provided deduction for study. This benefit takes effect from the month in which the employee submitted an application to the employer.
What documents are needed for the return of personal income tax for education?
When collecting documents for submission to the tax service, it is necessary to prepare copies of them. If the documents will be provided in person, simple photocopies will suffice. However, when applying in person, you will need to show the tax employees and the original documents. If the transfer of documents will be carried out by mail, then the originals do not need to be sent, but the copies will need to be notarized.
Which option to choose is a personal matter for everyone. At first glance, mail forwarding saves time, but keep in mind that you will have to spend additional time certifying copies of documents. As a result, a personal appeal to the tax service may turn out to be a faster option and, moreover, will allow you to quickly find out about the lack of any document or signature.
So, in the general case, the following are submitted to the tax office for the return of personal income tax:
- An application for income tax refund, written in free form. The application must indicate the amount to be returned, as well as additional wishes of the applicant (for example, a request to receive the refunded money on a bank card).
- Tax declaration 3-NDFL for the past year (filled out independently).
- Certificate of accrued and withheld taxes in the form 2-NDFL. This certificate must be taken from the accounting department at the place of work.
- Agreement for the education of the child. This agreement must necessarily indicate the details of the educational institution, its licenses for educational activities, the cost of education, as well as the fact that the child is studying full-time. The second party to the contract must be one of the parents, adoptive parent, guardian, brother or sister of the student.
- Receipts of tuition fees (other documents confirming the fact of tuition fees). It should be clear from the receipt that it was the parents who paid for the studies. If the student himself, or the company that sent him to study, or social funds pays for the studies, then the income tax benefit is not granted.
- Birth certificate of the child (for adoptive parents – a court decision on adoption).
- Bank account or card details for a refund.
- Educational institution license (if its details are not specified in the training agreement).
- Certificate of full-time study (if the form of study is not specified in the contract).
- Marriage certificate (if the tax deduction is issued by the spouse of the paying parent).
- Decision of the guardianship body on the establishment of guardianship (if the guardian pays for the education of the ward).
Many of these documents have their own validity period, so they will have to be updated each time they are submitted. By law, a decision on the return of personal income tax is made within 10 days, but not earlier than a desk tax audit of documents. But a desk audit can sometimes take up to 3 months. Within 5 days after the decision is made, a notification about it is sent to the applicant. In practice, as a rule, a refund occurs approximately within a month after the application is submitted.
Help 3-NDFL for tax deduction for education
Form 3-NDFL is a regular personal income tax return. The source of data for filling it out is a certificate of form 2-NDFL, which is provided by the accounting department at the place of work. The 3-NDFL declaration is quite voluminous and complex: the document has several pages, and its content changes periodically, so last year’s form may be outdated. In this regard, the Federal Tax Service of the Russian Federation, by separate orders, approves the procedure for filling out a tax return.
However, in simple cases, which include receiving a tax deduction for tuition, it is not difficult to fill out 3-personal income tax on your own. Blank forms for manual filling can be obtained from the tax office. With a sufficient level of computer proficiency, you can use the program from the website of the Federal Tax Service. There are also third-party online tax filing services, but they are usually paid.
When filling out 3-personal income tax, it is indicated:
- The number of the tax office to which the documents will be submitted.
- Personal data of a citizen: full name, TIN, passport details, country code.
- Information about the place of residence or stay. When filling out, OKTMO is indicated – the code of the municipality. This code can be found on the Internet.
- Source of income and amounts received by month. Information is taken from the 2-NDFL certificate.
- In the “Deductions” section, the real amounts paid for the education of children are entered.