Code 114 in the certificate 2-NDFL. Standard tax deduction

According to the legislation, when calculating income tax, some people can receive a benefit in the form of a standard tax deduction. Due to the fact that the size of the salary depends on the amount of such a deduction, quite often many employees have questions about what certificates and documents must be submitted in order to obtain such a right. In turn, accountants are required to correctly place the code 114 in the certificate 2-NDFL to reflect in it the given deduction.

What is the mechanism for giving a deduction

The role of the tax agent for the assessment of income tax is the employer. In this regard, the tax authorities are closely monitoring the correctness of the calculation of such allocations. Reference 2-NDFL is the main tax register, which reflects all the accruals and benefits.

Children's tax deductions are imposed on all parents raising children under the age of eighteen. The exemption reduces the taxable base by 1.4 thousand rubles. For the first and second child, and for 3 thousand rubles for the third. If the child is educated in a state institution, such a deduction can be granted up to 24 years.

Tax return, code of deduction 114

The form by which the organization reports to the tax authorities is a certificate containing detailed information about the employee and the amounts accrued. Due to the fact that different types of deductions are used when calculating the value-added tax, a special system of codes was invented by legislators. Thus, the code 114 in the certificate 2-NDFL displays a children's deduction, given in the amount of 1.4 thousand rubles. Coding 115 and 116 is used to record benefits received for the second and third child, respectively. A complete list of codes used in the declaration can be found in a special directory.

What documents confirms a children's deduction

The tax code clearly regulates the document flow, which confirms code 114 in the certificate 2-NDFL. To confirm the right to benefit to parents with children under the age of eighteen, it is necessary to write a petition requesting a child's deduction, and attach copies of all birth certificates to it. After reaching the age of eighteen, you need to pass an additional certificate from the educational institution to the accounting department, which will serve as confirmation that the child is studying and is dependent on the parents. Only in the presence of all these documents, the tax agent has the right to reflect the code 114 in the certificate 2-NDFL. Annual updating of documents is not required.

Why you need a certificate of income tax

Such tax document, as 2-NDFL, has a fairly wide application. The main task of the register is to confirm the received income and the assessed tax. In addition, it reflects all the benefits of the employee and the amount of payment transferred by the tax agent.

Reference 2-NDFL is provided on demand to various lending institutions, as well as to receive social subsidies and benefits. In this regard, citizens who received such a certificate on their hands often ask the question: "What does the code 114 mean?"

The income tax reference is provided by the company's accountant at the first request of the employee, and also annually after the annual report is submitted. 2-NDFL must be filled in accordance with the tax accounting of the enterprise. It does not allow corrections and additions. Such document is seen by the director of the company, in the end the seal is put. Only in this way the issued certificate has full legal force and can be presented even in court.