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2023 Personal Special Additional Deductions for Income Tax

Confirmation has begun! According to Article 9 of the "Operation Measures for Special Additional Deductions for Personal Income Tax (Trial)" (State Administration of Taxation Announcement No. 7, 2022): Taxpayers need to apply for special additional deductions in the following year. If the withholding agent continues to apply for special additional deductions, it shall confirm the content of the special additional deductions for the following year in December of each year and submit it to the withholding agent.

1. What are the special deduction items?

1. Children’s education

(1) Deduction scope and standards Taxpayers whose children receive full-time academic education Relevant expenses are deducted at a standard fixed amount of 1,000 yuan per child per month. Academic education includes compulsory education (primary school, junior high school education), high school education (general high school, secondary vocational education, technical education), and higher education (college, undergraduate, master's, and doctoral education). Children who are in the preschool education stage between the age of 3 and before entering primary school shall follow the same instructions.

(2) Deduction method: Parents can choose to have one parent deduct 100% of the deduction standard, or both parties can deduct 50% of the deduction standard respectively. The specific deduction method cannot be changed within a tax year.

(3) The starting and ending time of deductions: The preschool education stage is from the month when the child reaches 3 years old to one month before entering primary school. Academic education refers to the month from which the child enrolls in full-time academic education to the month when the full-time academic education ends.

2. Continuing education

(1) Deduction scope and standards Expenditures incurred by taxpayers on continuing education for academic qualifications (degrees) in China shall be calculated on a monthly basis during the academic qualifications (degree) education period. A fixed amount of RMB 400 is deducted. Expenditures incurred by taxpayers on continuing education for professional qualifications for skilled personnel and continuing education for professional and technical personnel shall be deducted at a fixed amount of RMB 3,600 in the year in which the relevant certificates are obtained.

(2) Deduction method If an individual receives continuing education with a bachelor’s degree or below and meets the deduction conditions stipulated in these measures, he or she can choose to have his parents deduct the deduction, or he can choose to have it deducted by himself.

(3) After deducting the start and end time of continuing education for academic qualifications (degree), it is the month from the month of enrollment for continuing education for academic qualifications (degree) in China to the month of the completion of continuing education for academic qualifications (degree), for the same academic qualifications (degree) The maximum deduction period for continuing education shall not exceed 48 months. Continuing education for professional qualifications for skilled personnel and continuing education for professional qualifications for professional and technical personnel shall be the year in which the relevant certificates are obtained.

3. Medical treatment for serious illnesses

(1) Scope and standards of deduction: In a tax year, the taxpayer’s medical expenses related to basic medical insurance will be deducted from the personal burden after deducting medical insurance reimbursement ( Refers to the self-payment within the scope of the medical insurance catalog) and the accumulated amount exceeds 15,000 yuan, which shall be deducted by the taxpayer within the limit of 80,000 yuan when handling annual settlement.

(2) Deduction methods: Medical expenses incurred by taxpayers can be deducted by themselves or their spouses; medical expenses incurred by minor children can be deducted by one of their parents.

(3) The start and end time of deduction shall be the year in which the actual expenditure of medical expenses recorded in the medical security information system.

4. Housing loan interest

(1) Deduction scope and standards The taxpayer or his or her spouse, alone or jointly, uses a commercial bank or housing provident fund personal housing loan for himself or herself or others. When a spouse purchases a house in China, the interest expense on the first housing loan will be deducted at a standard fixed amount of 1,000 yuan per month in the year in which the loan interest is actually incurred, and the deduction period shall not exceed 240 months. Taxpayers can only enjoy a one-time deduction for interest on their first home loan.

(2) Deduction method After the couple agrees, one of the spouses can choose to make the deduction. The specific deduction method cannot be changed within a tax year. For the first housing loan that the couple purchased separately before marriage, the loan interest expenses can be deducted by the buyer at 100% of the deduction standard for one of the houses purchased after marriage. Each deduction is based on 50% of the deduction standard, and the specific deduction method cannot be changed within a tax year.

(3) The starting and ending time of deduction is from the month when repayment starts as stipulated in the loan contract to the month when the loan is fully repaid or the loan contract is terminated. The deduction period shall not exceed 240 months.

5. Housing rent

(1) Deduction Scope and Standards Housing rental expenses incurred by taxpayers who do not own their own housing in their main work cities can be deducted in fixed amounts according to the following standards: 1 . For municipalities directly under the Central Government, provincial capitals (capital) cities, cities under separate state planning and other cities determined by the State Council, the deduction standard is 1,500 yuan per month; 2. In addition to the cities listed in the first item, for cities with a registered population of more than 1 million in municipal districts, the deduction standard The deduction standard is 1,100 yuan per month; for cities with a registered population of less than 1 million in the municipal district, the deduction standard is 800 yuan per month.

(2) Deduction method Housing rental expenses shall be deducted by the lessee who signs the rental housing contract.

(3) The starting and ending time of the deduction is from the month when the house rental period begins to the month when the rental period ends as stipulated in the rental contract (agreement). If the contract (agreement) is terminated early, the actual lease term shall prevail.

6. Supporting the elderly

(1) Deduction scope and standards Taxpayers’ support expenditures for supporting one or more dependents shall be deducted in fixed amounts according to the following standards: 1. The taxpayer is If the taxpayer is an only child, the standard deduction is 2,000 yuan per month; 2. If the taxpayer is not an only child, the monthly deduction limit of 2,000 yuan will be shared between him and his siblings, and the amount shared by each person cannot exceed 1,000 yuan per month. Dependents refer to parents who are over 60 years old, and grandparents who are over 60 years old and whose children have passed away.

(2) Deduction method If the taxpayer is not an only child, the taxpayer can share it equally or by agreement with the dependents, or the dependent can designate the share. If the apportionment is agreed or designated, a written apportionment agreement must be signed, and the designated apportionment takes precedence over the agreed apportionment. The specific allocation method and amount cannot be changed within a tax year.

(3) The starting and ending time of deduction is from the month when the dependent reaches 60 years old to the end of the year when the support obligation terminates.

7. Care for infants and young children under three years old

(1) Deduction scope and standards Taxpayers’ expenses related to caring for infants and young children under three years old shall be RMB 1,000 per infant per month Yuan standard deduction.

(2) Deduction method: Parents can choose to have one parent deduct 100% of the deduction standard, or both parties can deduct 50% of the deduction standard respectively. The specific deduction method cannot be changed within a tax year.

(3) The starting and ending time of the deduction is from the month the infant is born to the month before the infant reaches 3 years old.

2. What is the process for special additional deductions?

01. If there is no change in the special additional deduction information in 2023, it only needs to be confirmed on the basis of 2022. 1. Download the updated version of the Personal Income Tax App, open the homepage of the Personal Income Tax App, select "Confirmation of special additional deductions for 2023 has begun - go to confirm" or "Common business - fill in special additional deductions", select "One-click import", and then select the deduction year 2023 . 2. The system prompts "The information for 2022 will be brought in, please confirm whether to continue?" or "You already have special additional deduction information for 2023. If you continue to confirm, the existing special additional deduction information will be overwritten!" Click after confirmation. "Sure". 3. Open the deduction information to be confirmed, check the information, and click Modify if there are any changes. After confirming the information, click "One-click Confirm". (Note: If there is information in the "Expired" status, it needs to be deleted or modified before clicking to confirm.) 4. After clicking "One-click Confirm", the special additional deduction information was submitted successfully. After confirmation, taxpayers can click "I want to query" in the App, select "Special Additional Deduction Information Query", and select the deduction year 2023 to view the submitted information. If there are changes, they can choose to void or modify it.

02. The filled-in information needs to be modified or invalidated in 2023. You want to modify the declaration method, deduction ratio, related information, etc. (such as the deduction ratio for supporting the elderly, children’s education, and housing loan interest in 2023, etc.) , you need to click Wait for confirmation to enter the relevant modification page to modify or delete.

03. New special additional deduction items need to be added in 2023. Click on the homepage of the Personal Income Tax App - Common Businesses - Fill in the Special Additional Deduction to add special additional deduction information.

02_Fill in the personal pension deduction information. Click the "I want to do tax"-personal pension deduction information management function to enter the function homepage. 2. Click the scan code entry button, turn on "Scan", scan the QR code on the personal pension payment voucher, and enter the authorization confirmation page. 3. After agreeing to the authorization, enter the deduction information confirmation page. 4. After confirming that the information is correct, click Next to enter the page for selecting the declaration method. If the voucher type is "monthly", the taxpayer can choose "declaration through the withholding agent" or "annual self-declaration"; if the voucher type is "annual", the taxpayer can only choose "annual self-declaration". 5. Click Submit to complete the submission of deduction information.