The content of the article
- What is a property deduction on mortgage interest
- Base deduction
- Mortgage interest deduction
- Who should
- Where to apply for tax deduction
- Federal Tax Service at the place of registration
- Government Services Portal
- How to return interest on a mortgage through a tax
- Filing an application of a standard form
- Documents for a deduction
- Receiving funds to the account
- Mortgage interest tax refund through employer
- When can I get a tax deduction
- Limitation period
- How is the deduction on interest paid on a mortgage loan calculated?
- Distribution of tax compensation for spouses
- Refund of personal income tax when refinancing a mortgage loan
- With personal life insurance
- Who is not entitled to a personal income tax return on mortgage interest
All citizens of the Russian Federation who apply for a loan from a bank for an apartment can receive a tax deduction on interest on a mortgage when they purchase real estate for the entire period during which the mortgage tax has been paid. To receive the accrued amount, you must submit documents to the tax office. The legislation allows the receipt of part of the funds if the transaction was executed at any state bank of the Russian Federation.
What is a property deduction on mortgage interest
The borrower has the right to return the money paid to the state treasury by taxes, or not to pay taxes. In this case, you can get a refund of part of the taxes, that is, reduce the amount of income on which tax is charged. A mortgage interest tax deduction is cash that reduces the amount of income for which taxes are levied. The purchase of real estate (apartment or land) using a mortgage loan and the payment of money on it is one of the cases giving the right to a property deduction from interest on a mortgage loan.
Citizens who apply for a mortgage when buying an apartment have the right to register interest. The return procedure is carried out in accordance with the third subparagraph of the first article of the Tax Code of the Russian Federation, which regulates the tax reporting period and the list of necessary documents. Refund of interest – under subparagraph four. The right to registration is valid if there is a certificate of purchase of housing. The maximum amount that a property deduction of interest on a mortgage may have is two million rubles.
Mortgage interest deduction
A citizen who bought property with a mortgage is required to pay, in addition to the main debt for the apartment, each month a certain amount to the bank. Over the entire period of payments, a certain amount of repaid debt is accumulated. The borrower has the right to return at a time 13% of the amount for mortgage interest, but not more than three hundred and ninety thousand rubles. This feature applies to loans issued after 2014. A citizen can receive a deduction on mortgage interest once in a lifetime.
Payment of interest to the bank can be made at any time and for any period of payment of a mortgage loan for housing. Cash can be obtained through the employer or the tax office. The choice of the method of receipt depends on the urgency of payment and the amount (some employers have the right to withhold interest for the provision of intermediary services).
The tax inspectorate compensates the citizen for the bank with a deduction of interest on the mortgage. A mortgage interest deduction is not required immediately for housing compensation. If the housing was purchased with a mortgage, and the citizen already used the deduction for the cost of the purchase, a refund can be made later. Compensation for the deduction of interest on the mortgage is due to all citizens of the Russian Federation who work officially during the entire term of payment of the debt.
Where to apply for tax deduction
A citizen can apply for a deduction on interest on a mortgage in the following organizations:
- portal of public services;
- tax inspection at the place of residence;
- any multifunctional center (MFC).
Federal Tax Service at the place of registration
The tax office at the place of registration carries out any operations related to the payment of tax interest. The number and address of your Federal Tax Service can be found on the portal of public services by entering the address of registration and the TIN number (tax identification number). At the place of registration, you can only submit an application and a 3-NDFL declaration, after which the application will be considered in a short time. If the right to receive payment is confirmed, it will be necessary to convey the rest of the package of documents.
Multifunctional Center (MFC) is engaged in registration of tax payments on mortgage loans. To receive a payment, it is necessary to fill out a declaration in accordance with form 3-NDFL, after the end of the year in which payments began to be made. Multifunctional centers are not geographically tied to citizens, and anyone who wants to receive interest payments can apply to any of them located on the territory of the Russian Federation.
Government Services Portal
You can get a deduction on interest on a mortgage by submitting an application through the official portal of public services. For this operation, you must register in the system, specify the data (series, number, registration) of the passport of a citizen of the Russian Federation, SNILS and other documents. After the administration checks the accuracy of the data, the user will be able to submit an electronic package of documents to return interest on the mortgage. In addition, on the portal you can learn how to get money from interest on mortgages in other organizations..
How to return interest on a mortgage through a tax
In order to return the amount of interest through the tax office, you must submit the appropriate package of documents. First of all, you need to calculate and fill out the declaration form. Papers are submitted with the expectation that the money will be returned within three months, counting from the date of filing the documents. The term for a refund depends on the bank in which the mortgage is issued, the amount of money, and how to get a deduction from interest on the mortgage (in cash or to a bank account).
Filing an application of a standard form
To make a payment at the tax office, you need to go to the terminal of the electronic line to select the item “fines, penalties, deductions”. The employee in the office indicated on the coupon will issue an application form in accordance with the needs of the citizen (No. 289 / BG-3-04 / 256). After filling out the application in accordance with the instructions specified in it, it is transferred to the tax officer, and the applicant has a certified copy in his hands.
The application is considered within ten business days. After considering the application, a notification of a positive or negative decision will be sent to the citizen at the address of registration indicated in the application in the form of a letter or in the form of a text, voice message to the contact phone. In case of a positive decision, it will be necessary to convey the rest of the package of documents.
Documents for a deduction
To receive the amount of money, you must submit the following documents:
- certificate of the bank in which the mortgage loan was received;
- certificate of employment;
- documents confirming the right to housing;
- tax return (form 3-personal income tax);
- passport (original and copies);
- additional documents indicating shared ownership, such as a marriage certificate (if necessary).
Receiving funds to the account
In order to receive payment, the statement should indicate the full details of the account to which the tax will have to transfer the funds. Refunds can be made in the following ways:
- to withdraw money in cash at the bank;
- to a bank account;
- to a debit or credit card account.
Mortgage interest tax refund through employer
The state can compensate interest for a mortgage housing loan and principal debt not only through the tax authority (with the calculation of the total annual amount), but also through the employer. The method of calculating annual payments is used. To use a similar scheme, you need to do the following:
- Order in advance from the tax office a certificate (3-personal income tax) on the existence of the right to compensation and payment of mortgages.
- Submit a certificate to the accountant at the place of work.
- Get a one-time payment in accounting within three months from the date of filing.
When can I get a tax deduction
Cash for mortgage interest can be received at any time, but not earlier than a year after the start of payments on a mortgage loan. You can return the money in a lump-sum payment or annual transfers to the account, depending on the desire of the citizen. In addition, the payment can be received not for the entire period, but for one or two years of the time of payment of the mortgage loan.
Refunds in the form of a tax deduction are not limited to limitation periods, according to the laws of the Russian Federation. A citizen has the right to receive a tax deduction before its full application. In addition, a sum of money can be paid for any tax period. However, the homeowner can exercise the right to deduction only in the amount that was valid when the rights to this payment appeared.
How is the deduction on interest paid on a mortgage loan calculated?
The deduction amount reduces the so-called taxable amount with which the citizen withheld income tax. The recipient may refund in the form of returned taxes 13% of the deduction for the reporting period. The amount may be the entire amount of money actually paid, but the amount of payments is limited according to the mortgage loan agreement – three million rubles. The maximum amount of tax to be refunded may reimburse up to 13% of the amount paid, i.e. if, for example, 100 rubles were paid, the compensation will be 13.
Distribution of tax compensation for spouses
In case of joint ownership of the purchased property by husband and wife (shared ownership), the main deduction (for real estate and interest) is distributed in accordance with the size of the share of each of the owners. The owner does not have the right to provide his share of the amount of the deduction of compensation to another copyright holder. Each of them has a deduction for purchase, accrued interest for a loan on an apartment in a mortgage. If the husband or wife has already filed a refund from the tax service for the apartment, the other shareholder can receive only half the deduction.
Refund of personal income tax when refinancing a mortgage loan
A citizen who bought housing with a mortgage and applied to another bank with a request for a one-time refinancing of the mortgage, thereby actually reducing the basic cost of paying interest to the bank, can also apply for interest in accordance with the first and second agreements. In this case, the documentation should indicate that the loan was issued in order to refinance the previous target loan.
With personal life insurance
A mortgage loan in most banks implies that a citizen will insure their health and life. For the entire time of the mortgage loan, a large sum of money accumulates. Since 2016, Russia has been allowed to return personal income tax with personal life insurance, but there are several requirements for an insurance contract:
- life insurance period of 5 years;
- Mortgage insurance policy paid by the borrower;
- the borrower is a citizen of the Russian Federation;
- a citizen faithfully paid taxes from his salary.
Who is not entitled to a personal income tax return on mortgage interest
They may refuse to provide benefits in the form of a refund of part of tax payments for mortgage interest if the borrower indicated in the application information that is not true or submitted to the authority an incomplete package of documents necessary for processing. In this case, a tax refund is provided after all documents have been submitted and the correct data have been indicated. The complete failure of the IFTS to provide a mortgage interest deduction occurs under the following circumstances:
- people working informally, i.e. without concluding an employment contract with the employer;
- persons engaged in commercial activities and those who work on the patent system of taxation;
- citizens who have become legal owners of housing purchased by third parties;
- persons who have previously applied for a mortgage deduction for the same facility;
- interdependent citizens (purchase of apartments or other housing from relatives).