Preparation of 3-NDFL in the program Declaration 2021 for mortgage deduction - instructions for 2021

Almost every employed Russian who has taken out a targeted loan for the purchase of real estate can receive a tax deduction for mortgage interest. Considering that the amounts included in mortgage agreements are considerable, the property return can amount to a significant amount - easing the burden on the family budget during the difficult period of paying off the mortgage.

Why are only a few of those entitled to this benefit taking advantage of this benefit? The main reason is citizens’ ignorance of their legal rights to receive compensation and lack of understanding of where to start and how to even get part of the money spent on buying a home back?

Our article will help you figure it out.

What is a deduction?

A property deduction is understood as an amount that reduces the tax base - when purchasing real estate, you have the right not to pay or return income tax. In other words, if you bought a home, then, subject to certain conditions, you can count on compensation from the state for part of the money spent.

For an officially employed home buyer, the tax base is his salary, from which the employer withholds 13% of personal income tax, or personal income tax, on a monthly basis.

What are the types of deductions (principal and interest) and how are they interrelated?

If not everyone who is entitled to this deduction knows that it is possible to receive a refund on the cost of housing, then even fewer people know about compensation for mortgage interest. But these are two components of the property deduction.

You may be interested in: “Tax deduction when buying an apartment with a mortgage”

How to get a mortgage property deduction in 2021?

The Tax Code of the Russian Federation provides for two types of deductions in relation to purchased real estate:

• 2 million rubles - provided in relation to the cost of purchased housing specified in the purchase and sale agreement;
• 3 million rubles - provided in relation to paid mortgage interest to those buyers who purchased an apartment under a mortgage agreement.

The two deductions are independent of each other and are calculated separately.

The taxpayer will be able to return 13% of his expenses for paying for an apartment and mortgage interest, but no more:

• 260,000 rub. - for the cost of the apartment;
• RUB 390,000 - for mortgage interest.

The amount of tax that can be returned for the past year cannot exceed the amount of personal income tax withheld for this year.

To return all due funds, buyers of apartments under a mortgage agreement usually first use a deduction of 2 million rubles. and return 260 thousand rubles, after which they apply for a mortgage deduction. This can be done in one declaration, if the personal income tax paid for the last year is sufficient to return the entire due amount. Otherwise, you can submit 3-NDFL annually, gradually choosing the entire deduction.

In 2021, for registration you need to use the new 3-NDFL form, approved by Order of the Federal Tax Service dated 08.28.20 No. ED-7-11 / [email protected]

In order not to make a mistake with the form you are using, you can use a convenient way to prepare a report - download the Declaration 2020 program from the Federal Tax Service website, install it and enter the necessary data in the correct lines.

Below is a link to a free download of the installation archive, as well as step-by-step instructions that will allow you to correctly prepare reports to receive a mortgage deduction.

Instructions for filling out the 3-NDFL declaration when purchasing an apartment without a mortgage.

For what loans and borrowings?

Not only a mortgage agreement is suitable as a basis for obtaining a property deduction. Any targeted loan received for the purchase (construction) of real estate gives the right to a tax refund.

Even if the loan was received not from a bank, but, for example, from the employer’s cash desk, the recipient of the borrowed funds has the right to expect a refund of part of the contributions paid. This rule applies only if the contract specifically states which house or apartment the loan funds will be used to purchase. In other words, the loan must be housing and targeted.

If there is no record, you will not be able to get a tax break.

How is it calculated

The exact amount of the required property refund will be calculated by the tax service after submitting the application and checking the documents. But the calculation scheme is quite simple, and the taxpayer himself will be able to estimate how much money he can receive.

Property compensation will amount to up to 13% of the cost of housing purchased with a mortgage. If, for example, the bank received 1000 rubles in interest from you, then you can count on returning an amount not exceeding 130 rubles. It is important to understand that the state can reimburse part of the interest actually paid on the loan, and not just accrued interest.

The table above shows the maximum possible return on interest, which is 390 thousand rubles.

Who can NOT expect a return on their mortgage interest?

Thus, if you are not a personal income tax payer and do not have taxable income, do not expect a refund. Money is based solely on actually accrued or paid taxes.

If the seller of the property is your close relative, you will not be able to receive a % refund on your mortgage!

How to print?

After filling out all the tabs of the Declaration 2021 program, you need to determine how 3-NDFL will be submitted to the tax office. If on paper in person or through a representative, then you need to save the report and print it, this is done like this:

• Click “View” - the completed 3-NDFL form will open, you need to check that all data is entered correctly, the application contains the correct amount to be returned;
• Click “Save” to save the data.
• Click “Check” - the program will automatically check for correct filling;
• Click “Print” - the 3-NDFL declaration will be printed;
• sign the printed document and take it to the tax office.

If the declaration will be submitted electronically through the taxpayer’s personal account, then you need to proceed as follows:

• click “Check” to check the data;
• click “xml file” and save;
• go to the taxpayer’s personal account on the Federal Tax Service website and submit the declaration in xml format via TKS.

Methods of registration and process of obtaining a deduction

There are two main ways to get your mortgage interest refunded:

1. Through the tax office.
2. Through the employer.

The advantage of receiving through the tax office is the ability to withdraw the entire amount at once, for a year or for the entire period. But the registration will take longer.

So how do you get an interest deduction through the IRS ?

If a family purchases housing as joint property, they will also need a copy of the marriage certificate and an agreement on the distribution of shares between the spouses.

The Federal Tax Service inspectorate has 3 months to verify the received documents. If everything is in order, the tax will be refunded within one month. For a long time? But you can immediately receive a round sum of compensation for a year or even several years.

How can I receive compensation for mortgage interest through my employer ?

Employed citizens do not have to wait until the end of the calendar year and apply for mortgage interest reimbursement from their employer. What should be done?

• Contact the tax office and get confirmation of your right to a refund;
• Provide the notification received from the Federal Tax Service to the accounting department of your organization;
• Collect a complete set of documents, as in the case of registration through the tax office (table above), with the exception of the tax return;
• The next month after submitting and checking the documents, the employee will receive a salary increased by the amount of income tax - 13%. And until the entire amount due on the paid loan accruals is returned from the budget, the salary will be increased.

You may be interested in: “Mortgage holidays”

Deduction upon purchase of a new home

Upon the purchase of square meters (a plot of land with a house or an apartment in a high-rise building does not matter) for a mortgage loan, a person has the prerogative of receiving two types of compensation from the state:

1. The main one, calculated from the cost of housing, according to clause 3 of clause 1. Article 220 of the Tax Code of the Russian Federation. The maximum return amount must be calculated from 2 million rubles 13%, that is, no more than 260 thousand rubles. The prerogative of registration appears after the acceptance of the transfer and acceptance certificate when participating in shared construction or from the time of registration in the unified register upon acquisition under a purchase and sale agreement. It is permitted to submit documentation for the assignment of compensation at the end of the year in which such an opportunity arose. It is possible to include both your own investments and bank funds in the final price.
2. Compensation for the mortgage interest rate is regulated by clause 4 of the above-mentioned article of the tax code. This article is devoted to this type of benefit.

For example, in 2021, Kuzovlev acquired a house with a plot of land in the Moscow region. The total price of what he purchased cost him 4 million. Of this, 3.5 million was on credit, and the rest was acquired by his own labor. In 2021, the man applied for a refund and stated the maximum possible amount of 2 million. The due payment for him will be 260 thousand. It can be transferred at a time based on the entire available amount in the taxpayer’s account.

Compensation for shared ownership

One more thing. If shared ownership is registered for the purchased housing, who can expect a tax refund and in what amount? In this case, a deduction (both basic and %) is due to each owner, in accordance with the size of his share. And this does not depend on the actual contribution of money by one of the shareholders, or by a husband or wife.

The tax refund will be distributed between husband and wife as follows:

1. in the case of shared ownership - based on the size of the share of each owner;
2. in the case of registration of common property - depending on the distribution between all owners of the main deduction (40% to 60%, 30% to 70%, etc.)

Insurance compensation

The vast majority of mortgage loans are issued in parallel with the conclusion of life and health insurance contracts. And here, too, the loan payer receives the right to a property return. The insurance amounts are considerable, and starting from 2021, a decision was made at the state level to refund income tax on the insurance amount paid.

You can receive a refund for the insurance you paid if the following requirements are met in the contract:

• The insurance period is more than five years.
• The fact of payment is confirmed by the borrower himself.
• The recipient of the mortgage is a citizen of the Russian Federation.
• There is official employment and, accordingly, income tax deductions are made.

The maximum possible amount of compensation under insurance is 15,600 rubles.

Refund of credit insurance: procedure

When drawing up a loan agreement, banks very often offer individuals to purchase an additional product - an insurance policy. Such actions of the lender are due to its desire to limit possible risks. This service is not free. Insurance always involves the payment of appropriate premiums, which increases the actual cost of lending for the borrower. Meanwhile, early repayment of the loan allows a citizen to refuse insurance with a refund of money paid for unused time under the contract.

The procedure for such a return is as follows:

1. An application with appropriate content is submitted to the insurer.
2. A package of documents is generated and provided:

• paper from the bank confirming the fact that the loan has been completely closed;
• a borrowing agreement entered into with a financial institution;
• civil passport of the borrower (policyholder).

1. The insurer reviews the application and issues a reasoned verdict.
2. If the request is approved, the funds are returned to the applicant.

An important nuance - a refund according to the above scheme is made only if the insurance contract initially regulates such a possibility.

If the bank is obliged to pay interest upon early repayment, then the return of the insurance is possible only if there is a corresponding clause in the contract

Answers to frequently asked questions

We also recommend watching an interview with the head of the real estate transactions department of the Third Rome Construction Group:

Download the program Declaration 2021

It is best to download the archive for installing the program from the official source - the Federal Tax Service website. You can do this absolutely free of charge yourself; the installation process takes no more than two minutes.

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If reporting is completed to return personal income tax on a mortgage for several years at once, then you need to fill out separate declarations for each year in the form valid for that year.

If the registration process is carried out in the program, then you need to download the installation archives for the corresponding years from the link above.

Instructions for filling out 3-NDFL in the program for tax refund on mortgage interest

The first thing you need to do is download the archive for installation from the Federal Tax Service website - the link is given above.

In the second step, the downloaded archive is installed on your computer or laptop. If you have any difficulties, you can additionally download the “Installation Instructions” also from the Federal Tax Service website.

The installed program should be opened - in its original form it looks like this:

On the left you can see 7 tabs, of which you need to fill out in order to receive a deduction for mortgage interest:

• Setting conditions - initial data;
• Information about the declarant - taxpayer details;
• Income in the Russian Federation - a reflection of wages for the year and withheld tax (filled out on the basis of a certificate of income requested from the employer);
• Property deductions - calculating the amount of mortgage relief;
• Tax credit/refund - a tab has been added in 2021 to generate a tax refund application.

Setting conditions

The top tab of the program must be completed by all taxpayers. If the purpose of forming 3-NDFL is to submit in connection with the right to a property deduction in relation to the costs of paying interest on a mortgage agreement, then you need to fill out:

Example of filling out a tab:

Declarant's details

The second tab of the program contains information about a taxpayer who incurs expenses in connection with the payment of interest on a mortgage agreement and wants to return part of his expenses.

On this tab, to fill out 3-NDFL, an individual must provide the following information:

An example of filling out the second tab:

Income

If a person received income only from Russian companies, then it is enough to fill out the third tab of the program “Income received in the Russian Federation.” If there were also receipts from foreign persons, then on the “Set condition” tab you need o, after which the additional tab “Income outside the Russian Federation” is activated.

For persons receiving salaries from Russian employers, filling out is carried out in the following order:

Example of filling out a tab:

Property deductions

You must select the “Property” tab, where information about the apartment purchased with a mortgage will be shown, and the amount of expenses for paying mortgage interest will be reflected.

At the top, check the “Provide property deduction” checkbox.

Next, you need to enter information about the apartment that was purchased under a mortgage agreement. To do this, click on the green plus and fill out the data indicated in the table below.

Example of filling in object data:

Next, fill out the “Calculation of property deduction”:

• Total cost - the field will be filled in automatically based on the cost of the apartment specified in the program when filling out information about the property.
• Deduction for previous years - if the apartment was purchased with a mortgage in 2020, then this field will be inactive, since the taxpayer is applying to the Federal Tax Service for the first time with a 3-NDFL declaration for a tax refund. If the apartment was purchased before 2021, then you need to manually enter the already used deduction for the cost of housing (maximum 2 million rubles).
• Interest on loans for all years - the total amount of interest paid, is automatically transferred from the specified information about the object.
• Interest deduction for previous years - shows the amount of the mortgage deduction already used (maximum 3,000,000).

Below is an example of filling out, when housing was purchased in 2018, a property deduction for an apartment in the amount of 2 million rubles. already used. Taxpayer wants 13 percent back on interest on a $150,000 mortgage.

Tax refund application

In the last tab of the Declaration 2021 program, you fill in the data to generate an application for property deduction and mortgage tax refund.

Here you need to click on the green plus and select “return application”.

Oh, then the program automatically calculates based on the specified income, withheld personal income tax and mortgage interest paid. If you wish, you can enter the tax amount manually, but it is important to calculate it correctly.

Fill in your bank and account details. In the “Account type” field, select “current - 02”.

Filling example:

Let's sum it up

So, after reading the article to the end, you learned that:

1. When purchasing real estate, the state can reduce the tax base by the transaction amount, saving the buyer’s budget by 13% in income tax;
2. A property tax deduction can be obtained not only from the purchase price of a house or apartment, but also from the mortgage interest paid;
3. The maximum return amount from the main loan is 260 thousand rubles, the maximum return on mortgage interest is 390 thousand rubles;
4. The loan must be housing and targeted;
5. Refunds can be issued either through the tax service or through the employer;
6. Not all categories of citizens can count on tax refunds when purchasing a home, etc.

Borrower's procedure for early loan repayment

To return excessively paid interest in case of premature closure of a loan, a citizen must follow the following procedure:

1. Thirty days before the scheduled repayment date, you must notify the bank of your intention to repay the loan in full. A written application is submitted.
2. Early payment of obligations in full is carried out.
3. The bank documents the fact that the borrower has no debt on the loan.
4. You can calculate the amount of excess interest paid when repaying a loan before the due date using the online calculator on the bank’s website.
5. An application is submitted to the creditor demanding the return of the appropriate funds.
6. The application is reviewed and a reasoned decision is made.

Money is paid if the verdict is positive. The refusal can be challenged in court.