Tax deductions: Issues of application

Subject. This article focuses on the personal income tax as one of the most important in the Russian tax system. Objectives. The study aims to identify the issues related to tax deductions in the personal income tax calculation. Methods. For the study, we used theoretical methods of cognition and empirical research methods. Results. The article examined the Russian model of personal income taxation and suggested identifying groups of taxpayers who should be exempt from paying taxes due to their low income. Conclusions. The real estate tax deduction should be increased in proportion to the rise in the real estate value in Russia. It is necessary to revise the grounds for providing deductions related to the merits of the taxpayer. Families should become taxpayers, not individuals. The results obtained may find application in tax practice when adjusting the statutory regulation of the Russian Federation.