The special additional deduction standard for individual income tax for "one elderly and one young" has been raised! The hot topics you are concerned about are all here

Recently, the State Council issued a notice to increase the three special additional deduction standards for personal income tax for "one elderly and one young".

Starting from January 1st this year, the special additional deduction standard for the care and education of infants and young children under the age of 3 has been increased from the current 1000 yuan per child per month to 2000 yuan. That is to say, every child's parents can deduct 2000 yuan before tax each month from birth to completion of their educational background. 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 will be deducted according to the standard quota of 3000 yuan per month, and the non only child and brother sisters will share the deduction amount of 3000 yuan per month.

Personal Income Tax Special Additional Deduction Policy

Reduce personal tax burden

Personal income tax special additional deductions refer to seven special additional deductions stipulated in the Personal Income Tax Law, including children's education, continuing education, serious illness medical treatment, housing loan interest, housing rent, elderly care, and infant and child care. The special additional deduction standards for individual income tax for "one elderly and one young" raised this time are three of them. So, to what extent do people understand this policy aimed at reducing the burden on the people? Let's take a look at the situation of the journalist's interview.

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During the interview, the reporter found that many people are familiar with the policy of special additional deductions for personal income tax, and many are also benefiting from it. Especially this time, the country has further raised the special additional deduction standards for "one elderly and one young", which has been widely welcomed.

No need to resubmit

Enable taxpayers to enjoy the new policy with ease and effort

How can the general public enjoy the benefits of the new tax reduction policy after the adjustment of the special additional deduction standard for "one old and one small"? What other precautions are there? Let's take a look at the answer from the tax department.

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If you have children at home, or if one of your parents is over 60 years old and has not yet reported the "one old and one young" deduction, you can enjoy it by filling in the special additional deduction information on the mobile personal income tax app or through the employer.

It is understood that many taxpayers are concerned about whether they need to fill out a new form for those who have already reported and enjoyed the "one old and one small" deduction according to the original standards? The tax department reminds that if taxpayers have already filled in special additional deduction information according to the original standard, starting from September, the information system will automatically calculate the personal income tax payable according to the new standard, without the need to fill in again.

So, how can we enjoy the deduction based on the increased standard when we have already filled out the "one old and one small" deduction according to the original standard?

Li Zongping, Director of the Agriculture and Forestry Taxation Branch of the Taxation Bureau of Hanshan District, Handan City, State Administration of Taxation: When declaring in September, the information system automatically deducts according to the new standards. If the tax has already been paid before, it will be deducted in future months. If the deduction is still not completed by December, the tax refund will be enjoyed during the comprehensive income settlement and payment in 2023.

It is reported that in recent feedback received by the tax department, some taxpayers have doubts about who the "elderly" in the special additional deduction policy for supporting the elderly refers to.

Li Hongyu, Deputy Director of the Income Tax Department of the Nanguan District Taxation Bureau of the State Administration of Taxation in Changchun City: "The term" elderly "in the special additional deduction for supporting the elderly refers to parents who are over 60 years old, or grandparents who have both passed away and are over 60 years old.".

At the same time, the tax department has launched implementation measures as soon as possible, timely upgrading the collection and management information system, and accurately pushing the three deductions already filled out to taxpayers through the personal income tax client, ensuring that taxpayers can enjoy deductions in a timely manner according to the new standards.

Highly targeted

Relieve the economic pressure of families with elderly parents and young children

At present, there are a large number of people in China who are "elderly at the top and young at the bottom". Increasing the special additional deduction standard for "one elderly and one young" is conducive to reducing the burden of family childbirth and supporting the elderly, and better safeguarding and improving people's livelihoods. So how much money can this policy save the people?

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Ms. Gao told reporters that she has always been paying close attention to the national tax and fee reduction policies. After the release of the "one elderly, one young" policy, she saw the news and immediately calculated how much money she could save this time.

Ms. Gao has an annual income of 84000 yuan that does not need to be taxed by enjoying the new standard of special personal income tax additional deductions for infant and toddler care, children's education, and elderly care. It is understood that Ms. Gao's annual income is about 200000 yuan, and she is subject to a 10% personal income tax rate. Previously, the special additional deduction for "one elderly and one young" can reduce taxes by 4800 yuan per year. However, after this standard increase, she can reduce taxes by 8400 yuan per year, which means she pays 3600 yuan less tax each year.

Expert: Increasing Residents' Disposable Income and Improving Consumption Ability

Experts say that the three special additional deductions are directly related to "one elderly and one young". Improving the standards for relevant special additional deductions is conducive to further reducing the burden of family support, better safeguarding and improving people's livelihoods, and also helps to increase residents' willingness and ability to consume.

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Experts say that raising the special deduction standards for personal income tax for "one elderly and one young" is primarily aimed at increasing the disposable income of the general public. By increasing household income and expanding consumption, we can leverage the fundamental role of consumption in driving economic growth.

Professor Zhu Qing from the School of Finance and Economics at Renmin University of China: "People of this age group, who are both old and young, face significant financial pressure to support their parents and take care of their children.". If their pre tax deduction standards can be raised, it will greatly increase their disposable income and consumption capacity, which is beneficial for the overall expansion of domestic demand and improvement of consumption levels in the country.

It is understood that since 2018, China has established seven special additional deductions in the field of personal income tax, focusing on key expenditure areas closely related to people's lives, such as education, upbringing, housing, medical care, and elderly care. On the basis of the basic monthly deduction standard of 5000 yuan, these deductions are superimposed, taking into account the differential burden and expenditure of families, making the personal income tax system more scientific and reasonable.

Professor Zhu Qing from the School of Finance and Economics at Renmin University of China: Currently, personal income tax is actually personalized, so our pre tax deduction of personal income tax has formed a relatively complete system. This not only takes into account the economic burden of taxpayers, but also reflects the country's social and economic policies.