A question posed about qualifying for a tax reduction for pensioners, as stated by Deputy Chaplin.
Refined Guide for Pensioners' Medical Tax Deductions
Hey there! Let's talk about pensioners and those part-time hustlers who continue to work or rent out property, and how they can score a nice tax break on medical expenses - courtesy of Russia's social tax deduction for medical treatment.
First things first, it's essential to know that a pension itself doesn't count as a taxable income, so it won't help you achieve the tax deduction. But if you've got other sources of income? That's where things get interesting.
Imagine you've got a hefty medical bill for yourself or a loved one. Thanks to this tax deduction, you can stagger that tax burden and get a bit of financial help with the costs. To do so, simply reduce the amount of taxable income you declare, basing this reduction on the medical expenses you've incurred.
As of January 1, 2024, the good news is that the maximum allowable medical expenses eligible for this deduction has jumped up to 150,000 rubles! That means you could recoup up to 19,500 rubles (13% of the total) in taxes, assuming you've paid the full amount into the budget that year. Remember, though, for expenses incurred up to and including 2023, the limit remains at 120,000 rubles and the maximum you can claim is 15,600 rubles.
An important thing to keep in mind is that the amount of the deduction actually paid out can't exceed the amount of NDFPL (Russian Personal Income Tax) you've shelled out in that tax year. So, if your tax payments for the year are less than the potential deduction, you can only claim back what you've actually paid. To stay on top of things, keep a close eye on your income and tax payments to truly maximize your tax deductions.
To claim this deduction, you need to submit a 3-NDFL tax return to the local tax office. Make sure to attach a document confirming the payment of your medical services to this application. In case you don't have any taxable income, remember that your children can take advantage of this right on your behalf, as a heads-up from State Duma Deputy Nikita Chaplin, a member of the Budget and Taxation Committee.
There are a few specifics and caveats you should know about this tax deduction for medical treatment:
- Only individuals paying personal income tax in Russia are eligible for the deduction.
- Since pensions aren't subject to personal income tax, non-working pensioners can't take advantage of this tax break.
- The deduction is available for expenses related to one's own or a family member's medical treatment and medicines.
- Receipts and confirmation from a licensed medical institution are critical for claiming this deduction.
- Medicines must be prescribed by a doctor, with a prescription kept as proof.
- The deduction is a refund of PIT paid, not a direct reimbursement, and it is only available up to the amount of tax paid.
That's all for now, pensioners! Enjoy the savings! 😎👍
- Although pensions don't contribute to taxable income, other personal-finance sources can help pensioners and part-time workers utilize the Russian social tax deduction for medical treatment, providing relief for high medical expenses.
- For those who hold non-taxable pensions, keep in mind that your personal-finance savvy children can claim this tax deduction on your behalf, giving you a financial boost for medical expenses.
