Tax deduction for pensioners

Tax deduction for pensioners

Both working and non-working pensioners can apply for the service. Today, the state allows for 5 types of benefits: standard, social, property, professional, and investment. However, elderly people most often apply for compensation related to housing purchases, medical treatment, or education expenses.

Receiving a benefit as a pensioner requires meeting a number of conditions:

• the deduction recipient continues to work even after reaching retirement age and receives a "white" salary from their employer, i.e., one subject to income tax;
• the senior was officially employed and paid tax contributions for the three years preceding retirement age.

Note.

In other words, a non-working pensioner can only apply for compensation if they do so no later than 3 years after retiring from official employment.

Property

In Russia, every taxpayer has the right to claim a tax deduction when purchasing real estate. Elderly people are no exception. Like other citizens, they can receive compensation based on either the cost of the housing or the interest paid on a mortgage. In the first case, the maximum possible amount is 260,000 RUB, and in the second, 390,000 RUB.

In addition, you can receive a deduction from the sale of real estate. Selling property is also income, on which Russians are required to pay tax if the apartment was owned for less than 3 years (or less than 5 years if it was purchased after August 1, 2017). Therefore, a disabled person can use the deduction to reduce the amount of taxes paid or to offset the costs of purchasing new housing.

Please note that the deduction is transferable. This means that if a pensioner receives an incomplete tax deduction for 2021 in 2022, they can carry the remainder over to the following three years.

Standard

This compensation applies to pensioners whose children are either minors or are studying at higher education institutions and are under 24 years old. You can receive compensation for each child: 1,400 RUB for the first, the same for the second, and 3,000 RUB for each subsequent child. If elderly people are raising a disabled child, they can count on a deduction of 12,000 RUB.

Social

This type involves compensation for medical treatment. It can be obtained by either working elderly people or close relatives of a disabled citizen if they are the ones paying for medications and examinations. The maximum possible amount for a social tax deduction is 15,600 RUB, but there are no limits for expensive medical treatments. Military pensioners can also apply for this.

Land tax

In 2017, a law was passed allowing disabled citizens to reduce the amount of tax paid on land plots they own. Moreover, not only pensioners but also pre-retirement age citizens can take advantage of this deduction.

Professional

This compensation is available to pensioners who continue their activities as individual entrepreneurs, artists, notaries, or lawyers. In this case, they can apply for a refund of 13% of the expenses incurred, provided they can document them.

How to apply for a tax deduction with the Federal Tax Service in 2022

The procedure for applying for a tax deduction for pensioners is practically no different from applying for benefits by other categories of citizens. You must submit an application to the local office of the Federal Tax Service. The elderly person must have with them:

• a passport of a citizen of the Russian Federation and a copy of it;
• a 2-NDFL income certificate for the previous period;
• a document confirming the right to receive the benefit (for example, a certificate of ownership in the case of a property deduction);
• 3-NDFL tax return form.

In addition, you must submit an application itself. It can be written in free form, but it must include the following details: the applicant's full name, registered address, contact information, and Taxpayer Identification Number (INN). You must also specify the amount of the benefit and the reason for receiving it. You can request a sample application at the tax office.

According to Article 88 of the Tax Code of the Russian Federation, the benefit can only be received after the documentation has been verified. The maximum period for this is 3 months from the date of application. Once a positive decision is made, the funds should be transferred to the applicant's account within no more than 1 calendar month.

Answering frequent questions

To conclude our article, we will answer the most frequent questions that arise for pensioners wishing to claim a tax refund.

Is it possible to get a refund for the medical treatment of close relatives?

In addition to your own treatment, you can also get a partial refund for the treatment of close relatives. These include spouses, parents, and minor children.

Can someone else receive a benefit for my treatment?

Yes, this is possible if your close relatives spent their own money on your treatment. For example, if they bought medication or paid for inpatient treatment. In such a case, the spouse or children can claim the tax deduction.

What kind of medical treatment is eligible for compensation?

First of all, it must be carried out within our country. This means you cannot claim a tax deduction for treatment received abroad. Legislation allows for compensation for the following types:

• dental treatment;
• any diagnostics;
• in vitro fertilization (IVF);
• pregnancy management and childbirth;
• surgeries;
• sanatorium treatment;
• payment for medication, etc.

Is there a statute of limitations for receiving a deduction?

The tax deduction only has a statute of limitations if a non-working person applies for it, which is 3 years. This means a citizen can apply for compensation no later than three years after retiring.

How do I apply for a tax deduction through my employer?

The list of documents required for the application remains the same. To receive a property tax deduction, a pensioner will need to provide a 3-NDFL tax return, a 2-NDFL income certificate, a certificate of ownership, a real estate purchase agreement, and a contract confirming actual expenses incurred. To receive a medical deduction, in addition to the tax return and income certificate, you must submit a contract with a private clinic for services rendered, a doctor's prescription for medication if you paid for it yourself, and a certificate of payment for medical services.

The documents listed above must also be submitted to the Federal Tax Service (FNS) to receive a notice confirming your right to the tax deduction. Then, you must take this document to your accounting department so that the accountant can recalculate your salary and stop withholding personal income tax (NDFL).

You have learned who can receive a tax deduction in 2021 and how. To summarize: all pensioners, whether they are working or not, can claim a partial refund of expenses. They can receive a deduction for purchased real estate and land, medical treatment, and children's education.