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What items are included in the special additional deductions?
The special additional deductions cover educational costs for children, continuing education expenses, health-care costs for major diseases, housing loan interest , rent, elderly support and care expenses for children under the age of 3.
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Who can enjoy the deduction for educational costs for children? What and how much are the deductible costs?
Taxpayers who can enjoy the special additional deduction for educational costs for children are the children’s legal guardians, including biological parents, stepparents, adoptive parents and other legal guardians of the children. Here children refer to legitimate children, illegitimate children, adopted children, stepchildren, as well as the minors who are not their own children but under their guardianship. Educational costs for children can be deducted at the standard quota of 24,000 yuan per child per year (2,000 yuan per child per month).
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Can parents with multiple children choose different deduction policies for different child?
Yes. For example, for child A, one parent can choose to deduct at the rate of 2,000 yuan per month and for child B, both parents can choose to deduct at the rate of 1,000yuan per month.
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Who can enjoy continuing education expenses deduction? What and how much are the deductible continuing-education expenses?
For taxpayers the expenses of continuing education (academic qualification/degree) in China are deductible at the standard quota of 400 yuan per month during the continuing education (academic qualification/degree) period. The deduction period for continuing education for the same academic qualification or degree shall not exceed 48 months. Continuing education expenses of professional qualifications of skilled personnel or professional qualifications of specialized technicians incurred are deductible at the fixed rate of 3,600 yuan in the year when the relevant qualifications are received.
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When a taxpayer is entitled to the deduction for continuing education expenses, are the periods of the suspension of schooling without losing one's status as a student due to illness or other reasons and summer and winter vacations organized by the educational institution in accordance with the regulations counted as the deduction period consecutively?
The deduction period of continuing education expenses shall not exceed 48 months, which should be calculated consecutively, including the suspension of schooling without losing one's status as a student due to illness or other reasons, as well as the summer and winter vacations.
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Can taxpayers enjoy deduction for continuing education expenses if they have undertaken continuing education(degree) abroad, or if they have received a certificate of skill issued abroad?
No. Taxpayers can only enjoy deduction for continuing education expenses for academic qualifications or degrees received within China, as well as continuing education expenses of professional qualifications of skilled personnel or the professional qualifications of specialized technicians in accordance with the regulations.
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Who can enjoy deduction for health-care costs for major diseases? What and how much are the deductible health-care costs for major diseases?
Within a tax year, for medical expenses incurred by a taxpayer that are relevant to the basic medical insurance, the part of such expenses that are individually borne and paid by the taxpayer after medical insurance reimbursement (those are to be individually borne under the medical insurance catalogue) cumulatively in excess of 15,000 yuan is deductible as they are actually incurred up to the standard limit of 80,000 yuan per year at the time of individual income tax reconciliation. Medical expenses of a taxpayer are deductible from the taxable income of either the taxpayer or his/her spouse; medical expenses related to a minor may be deducted from the taxable income of either parent of the minor.The deduction amounts for the medical expenses of a taxpayer and the spouse or any minor child of the taxpayer shall be calculated separately.
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