Continuing education is very important in our daily lives. For example, after we work, we will continue to obtain vocational qualifications and academic education to improve our work ability. The expenses for continuing education can be deducted in accordance with the regulations when calculating the personal income tax on wages and salaries.
1. The meaning of continuing education expenditure
Continuing education refers to the expenditure incurred in receiving continuing education for academic qualifications (degrees) and vocational qualifications in China.
2. Special additional deduction standards for individual income tax for continuing education expenses
According to Article 8 of the Notice on Printing and Distributing the Interim Measures for Special Additional Deductions for Individual Income Tax (Guo Fa [2018] No. 41), taxpayers' expenses for continuing education for academic qualifications (degrees) in China shall be deducted at a fixed amount of RMB 400 per month during the period of academic (degree) education. The deduction period for continuing education of the same academic qualification (degree) cannot exceed 48 months. The expenses of taxpayers receiving continuing education for vocational qualifications for skilled personnel and professional and technical personnel shall be deducted according to a fixed amount of 3,600 yuan in the year in which the relevant certificates are obtained.
IIIThe main body of deduction for continuing education expenses
According to Article 9 of the Notice on Printing and Distributing the Interim Measures for Special Additional Deductions for Individual Income Tax (Guo Fa [2018] No. 41), individuals who receive continuing education with a bachelor's degree or below and meet the deduction conditions stipulated in these measures can choose to be deducted by their parents or themselves.
Professional qualifications and continuing education shall be deducted by the person.
FourthCalculation method of individual income tax on wages and salaries
Taxable income of comprehensive income from wages and salaries = Accumulated income - Cumulative deduction of expenses - Cumulative special deduction - Cumulative special additional deduction
Tax Payable = Taxable Income Applicable Tax Rate - Quick Deduction.
Among them, the monthly deduction is 5,000 yuan, and the annual deduction is 60,000 yuan.
According to the policy, if a resident individual who has received wages and salaries in the unit in each month of the previous year (January to December) and does not exceed 60,000 yuan for the whole year, if he is still working in the unit in the current year, he or she will directly deduct the cumulative deduction expenses of 60,000 yuan from January when withholding and prepaying individual income tax.
The cumulative special deduction includes the individual part of social security and the individual part of the housing provident fund.
The individual part of social security includes the individual part of basic endowment insurance, the individual part of basic medical insurance and the individual part of unemployment insurance.
The cumulative special additional deductions include children's education expenses, continuing education expenses, housing loan interest expenses, housing rent expenses, elderly support expenses, serious illness medical expenses, and infant and child care expenses under the age of 3.
Wage and salary income is subject to 7 levels of progressive tax rate for excess.
5. Examples of the calculation of continuing education expenses in the individual income tax on wages and salaries
Example 1: Zhang joined Company A in January 2024, and the salary payable in January is 6,500 yuan, and the personal part of the pension insurance paid is 5848 yuan, and the personal part of medical insurance is 1462 yuan, and the personal part of unemployment insurance is 3655 yuan, the individual part of the housing provident fund is 245 yuan, and 400 yuan can be deducted per month for academic continuing education.
Special deduction = individual portion of endowment insurance + individual portion of medical insurance + individual portion of unemployment insurance + individual portion of housing provident fund
584.8 + 146.2 + 36.55 + 245 = 1012.55 yuan.
Taxable income of wages and salaries in January = Accumulated income - Accumulated deduction of expenses - Accumulated special deduction - Cumulative continuing education expenditure.
87.45 yuan.
Tax Payable = Taxable Income Applicable Tax Rate - Quick Deduction.
Taxable income 8745 yuan 36,000 yuan, the applicable tax rate is 3%, and the quick deduction is 0).
2.62 yuan.
Example 2 (continuation example 1): Zhang's salary in February is 6,600 yuan, the cumulative deduction of expenses is 10,000 yuan, and the personal part of the pension insurance paid is 5848 yuan, and the personal part of medical insurance is 1462 yuan, and the personal part of unemployment insurance is 3655 yuan, the individual part of the housing provident fund is 245 yuan, and 800 yuan can be deducted for cumulative academic continuing education.
Accumulated income in February = wages payable in January + wages payable in February.
13,100 yuan.
Cumulative deduction = 5,000 + 5,000
10,000 yuan.
Cumulative special deduction = (584.)8 + 146.2 + 36.55 + 245）× 2
1012.55 × 2 = 2025.$1.
Cumulative continuing education expenditure = 400 + 400
800 yuan. Taxable income = Accumulated income - Accumulated deduction of expenses - Accumulated special deduction - Accumulated continuing education expenditure.
274.$9.
Tax Payable = Taxable Income Applicable Tax Rate - Quick Deduction.
Taxable income 2749 yuan 36,000 yuan, the applicable tax rate is 3%, and the quick deduction is 0).
8.25 yuan.
Tax payable = 8$25 - 2$62 (tax paid in January).
5.63 yuan.
Example 3: Chen joined Company B in January 2023, with an income of more than 60,000 yuan in the previous year, a salary of 9,800 yuan in January 2024, and a personal part of the pension insurance paid is 5848 yuan, and the personal part of medical insurance is 1462 yuan, and the personal part of unemployment insurance is 3655 yuan, the individual part of the housing provident fund is 245 yuan, and the professional qualification certificate obtained in the same month can be deducted 3,600 yuan in the current year.
Special deduction = individual portion of endowment insurance + individual portion of medical insurance + individual portion of unemployment insurance + individual portion of housing provident fund
584.8 + 146.2 + 36.55 + 245 = 1012.55 yuan.
Taxable income of wages and salaries in January = Accumulated income - Accumulated deduction of expenses - Accumulated special deduction - Cumulative continuing education expenditure.
187.45 yuan.
Tax Payable = Taxable Income Applicable Tax Rate - Quick Deduction.
Taxable income 18745 yuan 36,000 yuan, the applicable tax rate is 3%, and the quick deduction is 0).
5.62 yuan.
Example 4: (Continuation Question 3) Chen's salary in February is 6,100 yuan, the cumulative deduction of expenses is 10,000 yuan, and the personal part of the pension insurance paid is 5848 yuan, and the personal part of medical insurance is 1462 yuan, and the personal part of unemployment insurance is 3655 yuan, the individual part of the housing provident fund is 245 yuan, and the cumulative continuing education expenses can be deducted 3,600 yuan.
Accumulated income in February = wages payable in January + wages payable in February.
15,900 yuan.
Cumulative deduction = 5,000 + 5,000
10,000 yuan.
Cumulative special deduction = (584.)8 + 146.2 + 36.55 + 245）× 2
2025.$1.
Cumulative continuing education expenditure = 3,600 yuan (one year).
Taxable income = Accumulated income - Accumulated deduction of expenses - Accumulated special deduction - Accumulated continuing education expenditure.
274.$9.
Tax Payable = Taxable Income Applicable Tax Rate - Quick Deduction.
Taxable income 2749 yuan 36,000 yuan, the applicable tax rate is 3%, and the quick deduction is 0).
8.25 yuan.
Tax payable = 825 - 5.62 (tax paid in January).
2.63 yuan.
In general, continuing education expenses can be deducted from the taxable income of our wages and salaries, so that we pay less personal income tax.
February** Dynamic Incentive Program