Parents of students may get tax deduction regardless of income

State Duma deputy Yana Lantratova has proposed abolishing financial restrictions for providing a tax deduction for children who continue full-time education. Currently, the right to the benefit is lost as soon as the parent«s cumulative income from the beginning of the year exceeds 450 thousand rubles (approximately $4,500 at current rates).

«I propose to abolish the income restriction for the standard deduction for a child, including a full-time student child up to 24 years old, by making changes to Article 218 of the Tax Code of the Russian Federation and excluding the limit of 450,000 rubles (approximately $4,500 at current rates), after which the tax deduction is not applied,» RIA Novosti quotes the text of the document.

According to the deputy, the current norm creates an unfair situation: if the family income limit is exceeded, parents still continue to bear the expenses of maintaining a student child. At the same time, state tax support for the family ceases.

The advantage of the new reform is said to be the simplification of administration. Employers will not have to track the income threshold of an employee and perform complex recalculations of personal income tax (NDFL). This will minimize errors in calculations and reduce the number of disputes. The deduction will be applied until the child reaches the age of 24 or completes full-time education.