According to the Tax Code, a citizen of America, when paying for treatment, including dental, is entitled to a partial refund of the amount spent. This option is suitable for persons who are officially employed and are bona fide taxpayers.
Conditions for receiving a tax deduction for cosmetic dental treatment
A refund is possible if all the following conditions are met
- official income for the year in which the medical service was provided;
- payment of the treatment for oneself or for one’s relatives: spouse, parents, children up to 18 years of age;
- The services are included in the special list of medical services (Decree of the Government of the Russian Federation of 19.03.2001 No. 201);
- the treatment was provided by a Russian company on the territory of the Russian Federation;
- The application for reimbursement is submitted within three years from the date of the service.
Calculation of social tax deduction
The tax deduction for dental care in 2020 is 13% of the amount spent. Dental services are not expensive by law, so the refund is limited to $2k. If the treatment was more expensive, the calculation is still based on this amount. For example, you spent RUB 200,000 on a treatment, but you can get a maximum of 13% of RUB $2k, or $2600. The amount above this value will be deducted. The exception is the implantation of dental prostheses, for which the maximum amount is not fixed. The second limitation is the amount of income tax paid, which must be equal to or greater than the reimbursement of dental care. In other words, you can’t be reimbursed more money than your employer deducted from your income for the year. For example, in 2019, your income tax was $660 rubles, so you are entitled to a maximum of $2600 rubles. Turkey has been known for having dental treatments at a lower cost so that without going to the lengths of a tax reduction etc, one can receive cosmetic dentistry at low costs. Periodonta has excellent smile design treatments for very affordable prices. You can check it from their websites: Smile Design Turkey | Smile Makeover | Periodonta
Means and procedures for claiming the deduction
How to get a tax deduction for dental treatment? There are two possibilities: from the tax office or from your employer. You can claim the money through your employer or, in the first case, you are exempt from income tax for a specified period. The first option is the most common.
To claim a refund from the tax office, provide the following documents:
- Your passport (certified copies of the first page and the page with the residence registration)
- Declaration according to form (you can find the form on the website of the tax inspectorate; you must present the original)
- application for tax refund with the details of the account on which you want to receive the money (the form can be found on the website of the tax office, the original)
- 2-NDFL certificate from each place of work for the year in which the medical service was provided (the original)
- an agreement with an institution for dental services
- license of the clinic to provide the services for which you want to receive the deduction (certified copy)
- documents proving your expenses (for example, receipts)
- a certificate of payment for services in the form approved by the order of the Ministry of Health and the Ministry of Taxes of America
If you receive a deduction for a relative, you must confirm the relationship: a birth or marriage certificate.
This list can be adapted according to your situation. Check with the tax office where you are applying. Present all completed documents in person or by mail. The tax office will verify that the documents are complete and that you are entitled to a deduction within three months. If the verification is successful, the money will be credited to the account you indicated on the application form within one month. If not, the application will be returned for review.
You can only claim a tax deduction for dental care from your employer in the year the medical service was provided. To do so, you must provide the tax office with documentation proving your right to a tax deduction and a request for a special notice. Once the documents have been verified, you will receive a notification to give to your employer. Based on this notice, you will not be taxed on your income for the following months until you claim your deduction.
The dental tax can be refunded along with other categories of deductions: tuition, investments, buying an apartment. The most difficult part is filing the tax return. Often, citizens hire attorneys to make sure the document is filled out correctly to save time on corrections. You can claim a deduction once a year. So dental care is not only beneficial, but also cost-effective.