Tax deductions are a kind of privilege,which the state provides parents. Depending on the number of dependents, the employee may pay a smaller amount to the tax office, leaving himself "cash". Each deduction has its own number, a kind of code. He is reflected in the certificate in the form 2-NDFL, as well as taken into account when filing a tax return. Also, this code is indicated in the tax return. One of the most common is a deduction for the 114th.
What is the essence of the tax deduction?
Tax deduction is a definite figurewhich, as the name implies, is deducted from the total amount of the employee’s wages. That is, the amount of money that is not taxed. These amounts vary and depend on a number of factors. For example, the number of children, as well as the degree of kinship. That is, for foster children, provided that they are disabled, the amount may be different. Also increased amounts of deductions apply to those who have the status of a widow or single mother.
In the particular case of one child to the parentaccounted for 182 ruble gain. That is precisely this amount goes into the pocket of the employee, and not the tax service. However, each case makes sense to consider separately, since it is possible to identify any fundamental nuances.
What relies on the first child? Deduction code - 114
The first child is entitled to a deduction of 1400rubles. Of course, if the child is raised not by a widow or single mother. By the way, a document in form 25, which is obtained by single mothers in the registry office, may be present for the father, who is raising the child himself. However, this is an isolated case that many employers forget about.
Thus, if the employee has provided allthe necessary documents, the accountant is obliged to designate the required deduction code –114 in the 1C “Salary and Human Resource Management” program. Due to this, the employee will use this benefit every month. It should be noted that the deduction is provided from the month when all documents are handed over. By the way, they stop if the total income of an employee for the year exceeded three hundred fifty thousand rubles.
What accounting documents do you need?
To receive a deduction for code 114, an employee must provide the following documentation to an accountant:
- Application form established by the companyor in free form, if there is no regulated sample. Here you need to specify your details, the last name, first name and patronymic of the child, as well as his date of birth. It also makes sense to write exactly which documents are provided.
- A copy of the birth certificate of the child.The mistake is to provide a copy of the passport. Even if the child is already 14 years old, and he has a document confirming his identity, in order to receive a deduction on 114 or another code, it is necessary to provide a birth certificate. This is due to the fact that it indicates who exactly is the parent.
- Help from the school. This document is provided if the child is already 18 years old and he is studying full-time. For "correspondence students" deduction of personal income tax (code 114) is not available.
- Help form 2-NDFL, if an employeegets a new job. It helps to track the total amount of income for the year, and also does not give the employee the opportunity to receive a deduction for one month twice, but from different employers.
Change history
It is worth noting that in personal income tax deduction code is 114 timeschanged its name. For example, the described number was assigned to him only in 2012, when it was decided to separate the first and second child with different codes, despite the fact that the sum on them is the same.
And since the end of 2016 there have been new changes. In 2-NDFL, the deduction code 114 changed its number to 126. This is exactly what the code provided for the first child to parents now looks like.
Not always on the pay sheet thatprovided by the employer, you can see the deduction code and its amount. Therefore, the employee has the right to independently calculate the amount of tax. For this, it is necessary to subtract the amount of the deduction from the total payroll. In the case of code 114, this is one thousand four hundred rubles. And the result must be multiplied by thirteen percent. That is how much the employee must pay the tax office.
Deduction codes in certificates and declarations
In the certificate in the form 2-NDFL which acceptsthe tax inspectorate and the majority of credit organizations, much is built on codes. Here you can find the digital notation of employee income, and, of course, all deductions for children. Code 114 is located immediately under the graphs with employee income. It is worth noting that this certificate does not indicate which month the deduction was provided for; only the sum is noted by accrual from the beginning of the calendar year or from the moment of starting work at the enterprise.
In the tax return, which is also called3-NDFL, you can also specify these codes used by the employee. However, a program that can be downloaded from the official website of the tax service will help to do this correctly.
