What are the codes for the child tax credit in 2021?

Why are standard tax deductions necessary?

The standard deduction allows you to reduce your income by a certain amount in order to withhold less income tax. This right is enshrined in Art. 218 Tax Code of the Russian Federation. The employee independently decides whether to take advantage of this right to standard deductions or not. He himself is obliged to provide the accounting department with documents for standard deductions for children in 2021 and write a statement so that the employer - tax agent correctly calculates and withholds income tax taking into account standard deductions . This responsibility lies with the individual taxpayer, not the accountant, and it is up to the employee to decide whether he wants to take the standard deduction or not.

The limit for the standard deduction for children in 2017 is as follows: 350,000 rubles. If year-to-date cumulative income exceeds this limit for the standard child deduction in 2017 , then the right to use the deduction is lost from that month.

Deduction code 2-NDFL for a child: what has changed

In 2021, the Federal Tax Service approved new deduction codes for children. Since 2017, codes 114-125 have been replaced by 126-149. Let's give an example. If deduction code 126 is indicated in the 2-NDFL certificate, it means that the employee received a deduction for the first child who is under 18 years old or is a student/graduate student (up to 24 years old), or a full-time student. Previously, code 114 was indicated for this deduction.

Personal income tax deduction codes for children in 2021: changes, table

As mentioned above, codes 114-125 were excluded according to order No. ММВ-7-11 / [email protected] Other encodings were approved instead.

Codes: standard personal income tax deductions in 2021 for children. Table.

Let's look at the changes in detail:

• code 114 changed to codes 126 and 130;
• code 115 - on 127 and 131;
• code 116 - on 128 and 132;
• code 117 - on 129 and 133;
• code 118 - on 134 and 135;
• code 119 - on 136 and 137;
• code 120 - on 138 and 139;
• code 121 - on 140 and 141;
• code 122 - on 142 and 143;
• code 123 - on 144 and 145;
• code 124 - on 146 and 147;
• code 125 - on 148 and 149.

Tax officials have broken down deductions into separate subgroups.

Personal income tax tax code of the Russian Federation 2021 latest edition: what codes should be used?

Let's take a closer look at what the certificate looks like and what codes are indicated in it.

Let's start with section 1:

This is an identification section, where it is important to indicate not only the serial number of the document and its date, but also indicate the attribute (tax calculated and withheld - 1, no possibility of withholding tax - 2). Next, you should reflect the adjustment number, if it is a corrective document, enter the inspection code and proceed to filling out information on the tax agent.

2-NDFL: for what period is it issued?

For example, if your organization has a TIN 771401133689, then in the field “in the Federal Tax Service (code)” the accountant will put 7714, this will be the code in the Federal Tax Service in certificate 2 of the personal income tax; in the TIN column – 771401133689; in checkpoint column 771401001.

You can proceed to filling out Section 2:

These cells are designed to identify the taxpayer for whom income tax calculations and withholdings were made. To fill them out, you must have the following information about the employee:

• his identification number as a taxpayer - analogous to the organization’s TIN
• Next, the surname, first name, patronymic are indicated, and the latter must be indicated only if it is present in the document
• do not forget to determine and indicate the status of this taxpayer: 1 – resident, 2 – non-resident, 3 – non-resident, but a highly qualified specialist
• ID document code in 2nd personal income tax - usually this is the citizen’s passport code
• when specifying address information, you should rely on generally accepted abbreviations and the codification system
• citizenship country code in 2nd personal income tax - for Russians this is the country code for 2nd personal income tax Russia 643

Now you can start filling out Section 3; moreover, for most tax agents using modern automated solutions, the data in the first two blocks is filled out automatically from reference books.

Section No. 3 serves to reflect the amounts of income by code by month of accrual. For example, here you can see the following encoding:

• income code 2000 in personal income tax certificate 2: many are already accustomed to seeing it in the document, since this is how wage payments are encrypted, please note that remuneration under a civil contract will have a different code
• income code 2300 in personal income tax certificate 2: this is how the payment made by the tax agent in favor of the employee is encrypted based on the presented sick leave, because this income must be taxed at 13 percent
• income code 2760 in personal income tax certificate 2 - this is how the employer is required to encrypt the payment of financial assistance in favor of his employee; a similar code will be assigned if the former employee received a pension
• the income code in certificate 2 of personal income tax 2760 is usually used simultaneously with deduction 503, for example, an employee was given financial assistance of 6,000 rubles. (code 2760), non-taxable deduction of 4,000 rubles. (code 503)
• the vacation pay income code in personal income tax certificate 2 will be 2012, this is how the employer-agent must encrypt the payment for the vacation period, as prescribed by regulatory documentation
• the personal income tax code 2021 must be new, as required by order MMV-7-11 / [email protected] , it was approved by the Federal Tax Service on November 22, 16 and came into effect on December 26, it turns out that when issuing a certificate in 2021, you need to study the new coding
• income code 1010 in certificate 2 of personal income tax indicates the payment of dividends in favor of an individual participating in the development of the organization, these incomes are taxed in accordance with the provisions of Article 214 of the Tax Code of the Russian Federation
• income codes for certificate 2 personal income tax 2021 must be indicated in a new way according to the following rules: in a certificate with sign 2 - no later than 03/01/17, in a document with sign 1 - no later than 04/03/17.
• sick leave income code in personal income tax certificate 2 is 2300, it is under this code that the accountant displays the payment based on sick leave, this form is generated by the exclusive tax agent
• income code 1400 in personal income tax certificate 2 means that an individual taxpayer received income by renting out his car, computer or other similar property for use
• personal income tax code is a kind of reference book that indicates the source of income and its legally established code, used to fill out income certificates for “physicians” issued by tax agents
• the income code in 2 personal income tax has now changed, before filling out the form, you should analyze the adjustments introduced by the Federal Tax Service by order MMV-7-11/633, which replaced the requirements of the document MMV-7-11/387
• income code 2720 in personal income tax certificate 2 is the monetary value of a gift that was presented to an individual, and an amount exceeding 4,000 rubles will be taxed, as stated in clause 28 of article 217 of the Code
• compensation upon dismissal, the personal income tax code 2021 has code 4800 or “Other income”, this payment is reflected in the certificate as a separate line, the amount must be issued to the employee no later than the last day of work
• the income code salary in personal income tax certificate 2 is the most common; the employer will indicate 2000 if it is necessary to indicate the issuance of remuneration to the employee for the work duties performed by him
• income code 4800 in personal income tax certificate 2 - these are the other income of the employee at the enterprise, which include, for example, daily allowance in the amount of excess, additional payments for sick leave up to the average, compensation for dismissed
• income code 2012 in personal income tax certificate 2 is used to indicate vacation pay paid and is written on a separate line, it is enshrined in law and is part of the code directory
• income code 2010 in personal income tax certificate 2 will be assigned to the employee who received remuneration under a civil law contract, this applies to any remuneration of this kind, except for copyright
• income code 2510 in personal income tax certificate 2 clearly indicates that for the individual for whom the document was issued, the enterprise or entrepreneur made utility bills, paid for vacations, and purchased food products
• income codes for 2 personal income tax 2021 were approved at the end of 2015 and put into effect by order MMV-7-11 / [email protected] , today some of them have been changed, certificates for 2021 should have different codes
• income code 2610 in personal income tax certificate 2 is adopted to indicate material benefits, if they occurred in the current year, interest savings if the individual taxpayer received a preferential loan from an organization
• certificate 2 Personal income tax codes for income and deductions are now new, the order of the Federal Tax Service came into force on December 26, 2016, which means that when submitting forms to the inspectorate based on the results of 2021, tax agents must use new designations
• decoding of income codes in personal income tax certificate 2 is a reference book where each 4-digit code corresponds to a verbal decoding of a given specific accrual, always check the relevance of the codes

The analytical table of section 3 looks like this:

The month is numbered in order with numbers, the code is taken from the current directory, the amount is entered from the accountant's statement. Automated programs allow you to fill out a form with the click of a button. Please note that there are deduction codes in both section 3 and the next section 4.

What 2 personal income tax codes for deductions has the legislator provided?

Income

In a certificate of type 2-NDFL, individual entrepreneurs or enterprises can reflect those payments the source of which is themselves. The type of funds paid to the employee is reflected in the format of a special code in the 2-NDFL certificate. This certificate takes into account only those incomes that can be taxed. In this case, it is worth taking into account the amounts that were paid to an individual under a civil law or employment contract (Article 210 of the Tax Code of the Russian Federation).

Payments for individuals must be reflected in the third section of 2-NDFL. In this section, the heading must indicate the tax rate that will be applied to the income. In a situation where in 2021 an employee received payments that were taxed at different rates, then for each rate this section will have to be filled out separately.

When reflecting information in the tables of the third section, it is worth using appendices numbered 1 and 2 to Order of the Federal Tax Service of the Russian Federation No. MMB-7-11/387. Special codes are assigned to each type of payment. For example, a salary should be reflected by code 2000. Remuneration under other civil contracts is coded 2010. In a situation where there is no special code for the type of payment, the value 4800 must be entered.

The main payout codes remain unchanged . But two codes have appeared that should be indicated for reference to a large number of agents. These are situations where bonus remuneration is associated with production results and is included in the salary (code 2002). If the company pays bonuses and other remunerations against net profit, code 2003 is entered.

In what cases are they indicated?

Information on workers' remuneration must be submitted to the Federal Tax Service by enterprises and individual entrepreneurs in the format of a 2-NDFL certificate. They must be submitted strictly on time.

Such certificates may be required by employees when applying. Most often, they need them to get a loan. This form stipulates that they must show the codes of deductions and income associated with a particular citizen. Order No. MMB-7-11/633 approved the list of updated personal income tax codes. The use of these codes is required from the end of December 2016.

Innovations

The main changes affected standard deduction codes. Now, instead of 12 codes, 24 are used, due to the division of payer categories. These changes were made in accordance with the Order of the Federal Tax Service No. MMB-7-11/387 dated September 10, 2015.

All changes are effective from the end of December 2021. Accordingly, everyone needs to take this into account when preparing Form 2-NDFL certificates.

Bonus codes were also introduced - 2002 and 2003. In codes numbered 2641, 1533, 1532 and 1535, the names of income from activities that are associated with production financial elements became more precise.

Also, if we consider the situation as a whole, we can notice that the changes affected the codes that are provided for funds that reduce the tax base for actions that are related to securities and industrial financial elements.

Right to property deduction

The legally established right to deduction arises for citizens of the Russian Federation when purchasing or constructing a new residential premises, acquiring a plot of land for the construction of a new house or with a residential building already erected on the site.

You have the right to partially repay interest on all loans received for the purchase or construction of new housing. When you purchased a residential property without finishing, you can also claim a refund of the same percentage of the amount, consumables for finishing or repairs.

You lose the right to a property deduction when transacting real estate with your close relatives or when purchasing from a direct employer. And also in the event that the corresponding refund has previously been used.