How to enjoy the tax reduction dividend?, Xinhua Decoding | "One Old and One Small" Personal Income Tax Special Additional Deduction Standards Raised
Families related to "one older and one younger" will welcome the tax reduction dividend again. The State Council recently issued a notice on increasing the special additional deduction standards for personal income tax, deciding to increase the special additional deduction standards for personal income tax for the care of infants and young children under 3 years old, children's education, and elderly care. What is the standard after deducting the increase for "one elderly and one young"? How can ordinary people enjoy the dividend of tax reduction? The reporter interviewed relevant departments and experts on this matter.
How to adjust the deduction standards is one of the most concerning issues for everyone.
According to the notice, starting from January 1, 2023, the special additional deduction standard for the care of infants and young children under 3 years old 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.
"That is to say, for each child from birth to completion of their academic education, their parents can deduct 2000 yuan before tax each month, and 24000 yuan per year. These deductions can be enjoyed by both parents separately or by one of them," further explained the relevant person in charge of the Tax Administration Department of the Ministry of Finance.
In addition, the special additional deduction standard for supporting the elderly has been increased from 2000 yuan per month to 3000 yuan. Among them, the only child shall be deducted according to the standard quota of 3000 yuan per month, and the non only child and brother sisters shall share the deduction amount of 3000 yuan per month, and the amount shared by each person shall not exceed 1500 yuan per month.
![How to enjoy the tax reduction dividend?, Xinhua Decoding | "One Old and One Small" Personal Income Tax Special Additional Deduction Standards Raised](https://a5qu.com/upload/images/aa481eabc44230a0a4be4bd485f3013e.jpg)
The three special additional deductions adjusted this time are directly related to "one elderly and one young", and the deduction standards have been increased by 1000 yuan each, which can be said to be a significant adjustment. Professor Li Xuhong from the National Institute of Accounting in Beijing said that adjusting the deduction standards is conducive to further reducing the burden of family support, better improving and safeguarding people's livelihoods, and will also play a positive role in increasing residents' willingness and ability to consume.
After adjusting the deduction standards, how can the general public enjoy the dividends of the new tax reduction policy?
The reporter learned that taxpayers who have not yet reported the special additional deductions for the care of infants and young children under the age of 3, children's education, and elderly care for the year 2023 can enjoy them through the personal income tax app or by filling in the special additional deduction information through their employment unit. 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 processing the 2023 personal income tax settlement and payment.
So, for those who have already reported and enjoyed the "one old and one small" deduction according to the original standard since the beginning of this year, how can they enjoy the deduction according to the new standard? Do you still need to resubmit the relevant information?
The relevant person in charge of the Income Tax Department of the State Administration of Taxation introduced that since the beginning of this year, taxpayers who have reported and enjoyed these three special additional deductions for 2023 according to the original standards do not need to report again. The information system will automatically calculate the personal income tax payable according to the increased special additional deduction standards. Previously overpaid taxes can be automatically offset against subsequent monthly tax payments for the current year. If the deduction is not complete, it can continue to be enjoyed when processing the comprehensive income settlement and payment for the year 2023.
![How to enjoy the tax reduction dividend?, Xinhua Decoding | "One Old and One Small" Personal Income Tax Special Additional Deduction Standards Raised](https://a5qu.com/upload/images/7ede639bd97de92a329ee72671098ead.jpg)
"Taxpayers who have adjusted the agreed or designated additional deduction amount for elderly care can fill in the new deduction amount on the mobile personal income tax app or through the withholding agent," said the person in charge.
The person in charge also reminded that taxpayers should be responsible for the authenticity, accuracy, and completeness of the information filled in. If there is a change in the taxpayer's situation, relevant information should be provided to the employing unit or tax authority in a timely manner. For those who enjoy special additional deductions for false reporting, the tax authorities will handle it in accordance with relevant provisions such as the Tax Collection and Administration Law of the People's Republic of China and the Personal Income Tax Law of the People's Republic of China.