Prospects for Improving the Personal Income Tax for Taxpayers with Children

The population has always been the most important potential for the development of the state — it is the labor force, the scientific potential, and the bearer of cultural traditions and spiritual values. Mitigating the trends of natural decline and ensuring the growth of the population’s birth rate are among Russia’s strategic priorities, not only to ensure the internal socio-economic development of society, but also to preserve national security in the international arena. This article examines the socio-economic effectiveness of individual tax preferences for families with children for personal income tax (personal income tax). The adoption of indirect financial support measures for citizens with children by extending the exemption of part of their labor income from taxation, as well as the implementation of the refund of part of the personal income tax paid from the budget are promising for the budget, since, on the one hand, they can only be implemented by taxpayers who are in stable employment relationships, and on the other hand, they are aimed at to stimulate socio-demographic processes within the country. It was found that the changes in the calculation of standard tax deductions, which came into force in 2025, correspond to the state policy of supporting families with two or more children, in which the average per capita income per month is no more than 25,000 rubles. A promising direction for further improvement of the system of standard tax deductions for children is to establish a direct dependence of their amount on the amount of the subsistence minimum for the taxpayer and his dependent children. It has been revealed that the limits of social deductions in 2025 do not correspond to the level of real expenses of families with children for educational and medical purposes and require further improvement, since they are designed not only to compensate for part of the costs incurred for social purposes, but also to ensure an increase in the quality of life of citizens in the long term.

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