How to get a tax deduction
Many are concerned about the question of how to get a tax deduction for property. In addition, what documents need to be submitted and within what time period the application is considered. These and many other questions can be answered in the article.
How to get a property tax deduction
Each of us can get for the property to receive a tax deduction. However, not everyone takes advantage of such opportunities and the reason is obvious.
So, you miss the opportunity to return the finances for the purchase of an apartment. While the amount, often, may not be small at all. You can also use the money you receive to pay off your mortgage. Or meet some other need. For example, when a family has a small child, free money, the resource is always relevant.
Thus, if you make any major purchases, you can refund part of the funds spent. These financial transactions include:
- Treatment, especially in public institutions
- Buying a property (apartment, house, etc.)
- University tuition fees
- Registration of insurance
Who can receive a deduction and for what
First of all, it must be said that only those citizens who regularly pay taxes can count on a tax deduction . In other words, official work with monthly payments in accordance with all legal norms.
If you work, but this is not fixed by any documents, then you are not entitled to a deduction. There are several types of deductions:
- Standard. They refer to certain citizens, for example, disabled people, Chernobyl victims. It also includes payments for children.
- Social. These are deductions for categories – treatment, education.
- property payments. You can get this type of tax deduction after the purchase of real estate.
- Individual investment accounts. As a rule, deductions of this type are available for small and medium-sized businesses.
But, often, not only the question of how to get a tax deduction for an apartment or something else is of interest. But how much, specifically, will this amount be.
For example, you paid 120 thousand 🪙 for tuition. Of this amount, approximately 15600 🪙 will be returned to you. In addition, you need to understand that the property deduction cannot exceed two million 🪙. And when you buy a property with a mortgage, you can return not only the amount paid for the apartment.
Procedure, collection of documents
For what you can count on a tax deduction is understandable. Now it remains to figure out how to get a tax deduction through a tax or personal account. Depending on the type of deduction, the package of documents may vary. But, in general, this is a standard package:
- copy of passport, TIN;
- declaration 3-NDFL, the original is required, filled out independently or in the tax office;
- certificate of income, issued in the form of 2-NDFL.
Copies of payment documents, receipts for payment for tuition or treatment may also be required. If this concerns a child, certain information will be needed.
Step two, submission of documents
In which government agency can I receive a tax deduction? Any citizen of our country can apply to the tax office to which he belongs by registration, and not by place of residence. However, in order to return the deduction for the purchase of an apartment or for other transactions, you can visit the tax office yourself by arriving at the address. In addition, there are other options. For example, through the State Services portal or through your official representative. But remember that he must have a power of attorney.
After the documents are submitted, a cameral check begins. Exactly 3 months are allotted for its implementation. And if you have any questions, you will be contacted. So leave your contact details. If the deadline has passed, but you have not received a response, then contact us personally. Thus, you can always clarify at what stage the check is and whether there are any difficulties in resolving your issue.
How fast is the withdrawal process? Not the fastest.
In 2021, some amendments were made to the Tax Code, now the deduction can be obtained without a declaration and even filing documents.
At the same time, citizens have the right to apply for a simplified deduction. In this case, the tax authority is given a month to check the documents. In addition, in some situations, the period may be extended to three months. Thus, as soon as a positive decision is made, the funds will be transferred within 15 days.
However, when receiving a tax deduction for the purchase of a new or second-hand apartment in a simple way, you will have to wait at least 3 months. For example, if the documents are being checked and everything is in order, then there will be a month to transfer the deduction. In general, the whole procedure can take up to 4 months with all checks and completion of monetary transactions.
Common problems, errors
When visiting the tax office in person, it will not be difficult to get a tax deduction . And yet, errors still occur. When you submit documents incorrectly, inspectors may refuse you. There are also more serious problems.
Thus, your certificates and contracts are sent for verification, but the acceptance status does not appear. It turns out that the declaration remains in an immovable state for several months.
In addition, many people request deductions in the wrong order. For example, you have purchased real estate. In this case, a tax deduction becomes available for the interest that was paid on mortgage lending. However, the last payment can be provided to you for one object. In other words, in order to receive two deductions at the same time, you must first request a refund for the purchase. And only after that you should ask – for interest.
It is also worth saying that it is impossible to request the rest of the social deduction. That is, it can be obtained for the year when the applicant incurred expenses. At the same time, if the deduction was not received in full, next year there will be nothing left of the balance.
At the same time, if the inspector does not find something in the submitted package of documents, then a refusal will be received. Even if the declaration has already been submitted and errors were suddenly discovered, nothing can be corrected. Thus, you will have to go through the whole procedure again.
As a rule, the procedure for obtaining a tax deduction is the same. Moreover, it does not depend on the type of financial transaction for which you want to receive a refund. The difference lies only in the required package of documents that need to be collected and provided. And you can get acquainted with their list on the State Services website or at the tax office by contacting them personally.