I have introduced to you which personnel need to handle the final settlement and payment of individual income tax, and today I will talk about the precautions for special additional deductions in detail. It is said that filial piety comes first, let's talk about supporting the elderly today.
The first is the deduction standard. From January 1, 2019 to December 31, 2022, the special additional deduction standard for supporting the elderly is 2,000 yuan per month, of which the only child will be deducted according to the standard of 2,000 yuan per month, and the deduction amount of 2,000 yuan per month will be shared by non-only children, and the amount shared by each person cannot exceed 1,000 yuan per month. From January 1, 2023, the special additional deduction standard for supporting the elderly will be increased to 3,000 yuan per month, and the only child will be deducted according to the standard fixed amount of 3,000 yuan per month, and the deduction amount of 3,000 yuan per month will be shared by non-only children, and the amount shared by each person cannot exceed 1,500 yuan per month.
It should be noted that the total deduction for supporting the elderly is 3,000 yuan per month and will not increase with the increase in the number of elderly supporters.
The second is the apportionment method. The tax law stipulates three different ways of apportionment, the first is equal apportionment, that is, it is shared equally by the supporter, and the amount of apportionment = monthly deduction amount / number of surviving dependents, the second is agreed apportionment, that is, the dependant agrees on the contribution ratio, and the third is the designated apportionment, which is specified by the dependent. Regarding the apportionment method, the following three points need to be noted:
1. A written agreement must be signed for specifying apportionment and agreeing apportionment (no need for equal apportionment).
2. Designated apportionment takes precedence over agreed apportionment (the opinion of the dependant is the most important).
3. The specific apportionment method and amount cannot be changed within a tax year (cannot be changed within one year).
4. If you are not an only child, but your siblings have passed away, you can choose to enjoy the deduction standard for supporting the elderly as an "only child".
The third is the conditions that need to be met by the dependent. Dependents in the elderly are parents aged 60 or above, and grandparents who have passed away and grandparents who have passed away at least 60 years old. There are two things to note:
1. The dependents are parents, including biological parents, step-parents, and adoptive parents (supporting parents-in-law, parents-in-law, uncles and aunts are not eligible).
2. If the dependent is a grandparent or maternal grandparent, the grandchild or grandchild who has the obligation to support the elderly is entitled to a special additional deduction for supporting the elderly, and all the children of the dependent must be deceased.
The fourth is the deduction subject. There are two types of deduction subjects for the special additional deduction for supporting the elderly, one is all children who have the obligation to support them. The second category is grandchildren whose grandparents have passed away and who have the obligation to support them.
Among them, children with maintenance obligations include legitimate children, illegitimate children, adopted children, and stepchildren.
Finally, there is the start and end time limits. It should be noted that the start time of the special additional deduction for supporting the elderly is the month in which the dependent reaches the age of 60, but the end time is not the month in which the maintenance obligation is terminated, but at the end of the year when the maintenance obligation is terminated.