Tax deductions related to education
printWhat a tax deduction for education is
A tax deduction is an item or expense subtracted from gross income to reduce the amount of income subject to tax. The most common deductible expenses are purchase of real estate, education and medical treatment expenses. In Russia, if you receive your income from your employer (as opposed to some types of investments, self-employment), usually your employer withholds the income tax from your salary, in which case you receive your after tax income. If you are a tax resident and you are eligible for any of the tax deductions, you may return some of the income tax paid by applying for tax refund. One type of income tax deduction is a deduction of expenses, made to pay for the taxpayer’s own education. Tax deduction for education is one of the so-called “social” tax deductions. The deduction for education can be made each year, unlimited number of times.
Limits on deduction for education
The maximum deductible amount for expenses for the taxpayer’s own education is 120 000 rubles per year. This amount is valid for expenses that happened in 2009 or later. The maximum deductible amount for expenses for the taxpayer’s children is 50 000 roubles per year for both parents.
Please note that the deduction for taxpayer’s own education is a social deduction and the total amount of some social deductions may not exceed 120 000 roubles per year. That is, if you make several types of social deductions (for example, education and medical), the total amount of these deductions may not exceed 120 000 rubles per year.
Conditions necessary for deduction for education
The education must be provided by the institution, which has the license or other document, proving its status. The deduction for children is applicable for children up to 24 years old. That is you can make the deduction for each year of your child education until (and including) the year in which your child turns 24 years old.
Valid as of 18.05.2012
