Expert interpretation, strong observation | "one old and one young" welcoming the dividend of tax reduction again
Recently, the State Council issued a notice on raising the special additional deduction standards for personal income tax, deciding to increase the special additional deduction standards for personal income tax on the care of infants and young children under the age of 3, children's education, and supporting the elderly. Families related to "one older and one younger" will welcome the tax reduction dividend again.
What modifications have been made to the deduction criteria for "one elderly and one young" in the Notice? How to understand the specific requirements of the new standard? Since the beginning of this year, taxpayers who have already reported enjoying deductions for "one elderly and one young", how can they enjoy deductions according to the increased standards? The "Strong Observation" column of People's Daily Online interviewed relevant experts.
What adjustments have been made to the new standards?
The Notice points out that starting from January 1, 2023, the special additional deduction standard for the care of infants and young children under the age of 3 will be increased from 1000 yuan per month to 2000 yuan per infant. The standard for special additional deductions for children's education has been increased from 1000 yuan per month to 2000 yuan per child. The special additional deduction standard for supporting the elderly has been increased from 2000 yuan per month to 3000 yuan, of which only children are deducted 3000 yuan per month; Non only children and brothers and sisters share a deduction of 3000 yuan per month, with no more than 1500 yuan per person.
"The Notice allows' one elderly and one young 'to enjoy tangible policy dividends." Shi Wenwen, Director of the Finance and Taxation Law Research Center of China University of Political Science and Law and Professor of the School of Civil and Commercial Economics and Law, stated that the increase in the relevant special additional deduction standards is an important measure to reduce the burden of family childbirth, nurturing, and education, solve the problem of' one elderly and one young 'maintenance, optimize population development strategies, ensure and improve people's livelihoods, and enhance residents' consumption capacity.
How to understand the specific requirements of the new standard?
In order to clarify the implementation of the new standards, the State Administration of Taxation has issued a notice on implementing the policy of increasing the special additional deduction standards for personal income tax.
The announcement points out that one is the special additional deduction for the care and education of infants and young children under the age of 3, which can be enjoyed by both parents separately or by one of them; The second is the special additional deduction for supporting the elderly. The only child is deducted according to the standard quota of 3000 yuan per month. Non only children need to share the deduction amount of 3000 yuan per month with their brothers and sisters, but the amount shared by each person does not exceed 1500 yuan per month.
"This regulation grants taxpayers the right to choose the deduction method. This is to enable taxpayers to enjoy the tax reduction effect brought by the deduction to the maximum extent possible." Shi Zhengwen stated that special additional deductions for the care of infants and young children under 3 years old and children's education can be enjoyed separately by both parents, which is more in line with the actual situation of sharing alimony and fairly enjoying the benefits of tax reduction.
"The policy of shared deduction in the special additional deduction for supporting the elderly is twofold: firstly, considering that in reality, supporting the elderly is often shared by the children; secondly, to prevent taxpayers from evading taxes, because the income level of the children is different, sharing deduction can avoid unreasonable tax reduction." Shi Zhengwen said.
In addition, taxpayers should actively declare corresponding special additional deductions. Taxpayers who have not yet reported the special additional deductions for "one elderly and one young" in 2023 can enjoy them through the personal income tax app or by filling in the special additional deduction information through their employing units. "Starting from the tax declaration period in September, taxpayers can be deducted by their employing units according to the new standards after the increase, or they can declare deductions according to the new standards when handling the 2023 personal income tax settlement and payment." Shi Zhengwen said.
How to fill in the new standards after their implementation?
Since the beginning of this year, some taxpayers have reported and enjoyed special additional deductions for the care of infants and young children under the age of 3, children's education, and elderly care in 2023 according to the original standards.
For taxpayers who have already reported enjoying the "one old and one small" deduction, the announcement states that there is no need to re report, and the information system will automatically apply the increased special additional deduction standards. If taxpayers make adjustments to the agreed or designated additional deduction amount for elderly care, they can fill in the new allocation amount on the mobile personal income tax app or through the withholding agent.
For taxpayers who enjoy the deduction of "one old and one small" according to the original standard, the main text of the text should be supplemented. Starting from September, the information system will automatically calculate the personal income tax payable according to the increased special additional deduction standard. Previously overpaid taxes can be automatically deducted from the tax payable for the following months of the current year. If the deduction cannot be completed, they can continue to enjoy it when processing the comprehensive income settlement and payment for 2023.
