On August 31, the State Council issued a notice on raising the special additional deduction standards for personal income tax, which will increase the special additional deduction standards for infant and young children under 3 years old, child education, and elderly support (hereinafter referred to as "one old and one young" deduction) starting from January 1, 2023. The deduction standards for "one elderly and one young" have increased by 1000 yuan respectively. Currently, seven special additional deductions have been established for personal income tax, including care for infants and young children under 3 years old, child education, continuing education, serious illness medical treatment, housing loan interest, housing rent, and supporting the elderly. These expenses can be deducted before tax, thereby reducing the burden of personal income tax. According to the above notice, the special additional deduction standard for the care and education of infants and young children under the age of 3 has been increased from 1000 yuan per month to 2000 yuan per child. That is to say, from birth to completion of academic education, each child's parents can deduct 2000 yuan per month before tax, and 24000 yuan per year. These deductions can be enjoyed by both parents or one of them. The special additional deduction standard for supporting the elderly has been raised from 2000 yuan to 3000 yuan per month. The only child will be deducted according to the standard quota of 3000 yuan per month. The non only child and brother sisters will share the deduction amount of 3000 yuan per month, and the amount shared by each person will not exceed 1500 yuan per month. With the increase of the deduction standard for "one old and one small", taxpayers with "old in the upper class, small in the lower class" can pay less personal income tax and increase their income. In response to reporters' questions, relevant officials from the Tax Department of the Ministry of Finance and the Income Tax Department of the State Administration of Taxation pointed out that in recent years, there have been many calls to further reduce the burden of childbirth, upbringing, and support. The special additional deductions for the care of infants and young children under the age of 3, children's education, and support for the elderly are directly related to "one old and one young". Improving the relevant special additional deduction standards is conducive to further reducing the burden of family support, better ensuring and improving people's livelihoods, and also enhancing residents' willingness and ability to consume. Do you need to resubmit relevant information? The State Administration of Taxation stated that taxpayers who have already reported special additional deductions for the care of infants and young children under the age of 3, child education, and support for the elderly in 2023 do not need to re report. The information system will automatically apply the increased special additional deduction standards. However, if taxpayers make adjustments to the agreed or designated allocation of special additional deductions for elderly care, they can fill in the new allocation amount on the mobile personal income tax app or through the withholding agent. Among them, if the taxpayer is not an only child, he/she needs to share with his/her brothers and sisters the special additional deduction of 3000 yuan per month for supporting the elderly. After the deduction standard is increased, if taxpayers make adjustments to the agreed or designated additional deduction amount for supporting the elderly, they can fill in the new allocation amount on the mobile personal income tax app or through the withholding agent, but the amount should not exceed 1500 yuan per person per month. How to enjoy deductions according to the increased standards? It is reported that since the beginning of this year, taxpayers have reported and enjoyed special additional deductions for the care of infants and young children under 3 years old, child education, and elderly care in 2023 according to the original standards. Starting from September, the information system will automatically calculate the personal income tax payable according to the increased special additional deduction standards
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：chinanews.com
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