Children's education is very important in our lives. For example, the expenses incurred by parents for their children in the preschool education stage and the expenses incurred in receiving full-time academic education can be deducted in accordance with the regulations when calculating the individual income tax on wages and salaries.
1. The meaning of children's education
According to Article 5 of the Notice on Printing and Distributing the Interim Measures for Special Additional Deductions for Individual Income Tax (Guo Fa [2018] No. 41), children's education refers to the full-time academic education and preschool education from the age of 3 to primary school enrollment for the children of taxpayers.
Among them, academic education includes compulsory education (primary and junior high school education), high school education (general high school, secondary vocational education, technical education), and higher education (junior college, undergraduate, master's and doctoral education).
2. Special additional deduction standards for individual income tax for children's education
According to the provisions of the Notice on Raising the Special Additional Deduction Standards for Individual Income Tax (Guo Fa [2023] No. 13), each child will be deducted according to a fixed amount of 2,000 yuan per month.
3. The main body of deduction for children's education
Parents (legal guardians) can choose to deduct 100% of the deduction rate for one party, or they can choose to have both of them deduct at 50% of the deduction rate.
4. Calculation method of individual income tax on wages and salaries
Taxable income from comprehensive income of 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 amount is 5,000 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.
Cumulative special deduction = basic endowment insurance individual part + basic medical insurance individual part + unemployment insurance personal part + housing provident fund individual part.
Cumulative special additional deduction = children's education expenses + continuing education expenses + housing loan interest expenses + housing rent expenses + elderly support expenses + serious illness medical expenses + infant and child care expenses under 3 years old.
Wage and salary income is subject to 7 levels of progressive tax rate for excess.
5. Examples of the calculation of deduction of children's education expenses from individual income tax on wages and salaries
Example 1: Zhang joined Company A on January 5, 2024, and his salary in January is 11,100 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, 3,000 yuan can be deducted per month for supporting the elderly, and 2,000 yuan can be deducted per month for children's education.
Special deduction = individual portion of endowment insurance + individual portion of medical insurance + individual portion of unemployment insurance + individual portion of housing provident fund.
1012.55 yuan.
Taxable income of wages and salaries in January = Accumulated income - Accumulated deduction of expenses - Accumulated special deductions - Accumulated expenses for supporting the elderly - Accumulated expenses for children's education.
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 11,200 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, the cumulative support of the elderly can be deducted 6,000 yuan, and the cumulative children's education can be deducted 4,000 yuan.
Accumulated income in February = wages payable in January + wages payable in February.
22,300 yuan.
Cumulative deduction = 5,000 + 5,000
10,000 yuan.
Cumulative special deduction = (584.)8 + 146.2 + 36.55 + 245）× 2
2025.$1.
Cumulative expenses for supporting the elderly = 3000 + 3000
6000 yuan.
Cumulative expenditure on children's education = 2000 + 2000
4000 yuan.
Taxable income = Accumulated income - Accumulated deduction of expenses - Accumulated special deduction - Accumulated expenses for supporting the elderly - Accumulated expenses for children's education.
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 - 2.62 (tax paid in January).
5.63 yuan.
Example 3: Chen joined Company B on January 9, 2023, with an income of more than 60,000 yuan in the previous year, a salary of 8,700 yuan payable in January, 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, 1,500 yuan can be deducted per month for supporting the elderly, and 1,000 yuan can be deducted per month for children's education.
Special deduction = individual portion of endowment insurance + individual portion of medical insurance + individual portion of unemployment insurance + individual portion of housing provident fund.
1012.55 yuan.
Taxable income of wages and salaries in January = Accumulated income - Accumulated deduction of expenses - Accumulated special deductions - Accumulated expenses for supporting the elderly - Accumulated expenses for children's education.
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 8,800 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, the cumulative support of the elderly can be deducted 3,000 yuan, and the cumulative children's education can be deducted 2,000 yuan.
Accumulated income in February = wages payable in January + wages payable in February.
17,500 yuan.
Cumulative deduction = 5,000 + 5,000
10,000 yuan.
Cumulative special deduction = (584.)8 + 146.2 + 36.55 + 245）× 2
2025.$1.
Cumulative expenses for supporting the elderly = 1500 + 1500
3000 yuan.
Cumulative children's education expenses = 1000 + 1000
2000 yuan.
Taxable income = Accumulated income - Accumulated deduction of expenses - Accumulated special deduction - Accumulated expenses for supporting the elderly - Accumulated expenses for children's education.
474.$9.
Tax Payable = Taxable Income Applicable Tax Rate - Quick Deduction.
Taxable income 4749 yuan 36,000 yuan, the applicable tax rate is 3%, and the quick deduction is 0).
14.25 yuan.
Tax payable = 1425 - 5.62 (tax paid in January).
8.63 yuan.
Generally speaking, children's education expenses can be deducted from the taxable income of our wages and salaries, so that we pay less personal income tax.
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