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PIT 2023 – child relief. How much is the pro-family relief in PIT? Who is entitled to?

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Child tax relief (pro-family relief) is one of the most popular tax deductions. Thanks to the child relief – after submitting the annual PIT declaration – you can get a tax refund. Check if the child relief is for you and how to use it in the PIT settlement for 2022.

Billing action PIT for 2022 the year starts on February 15 – you can use, among others, the government service Your e-PIT. Over 91%, or 19.8 million tax returns for 2021 were submitted electronically, most of which, as much as 11.3 million, via the Your e-PIT service.

How to reduce the tax? One of the ways is to apply the pro-family relief, i.e. the so-called child allowance. Thanks to it, after submitting the annual PIT declaration, we can count on a refund of overpaid tax.

Child relief – who is entitled to it?

Child relief is granted to parents, legal guardians or acting as a foster family and receiving income taxed according to the tax scale (both as a tax resident and non-resident) – explained on the government website.

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The deduction in the PIT return for 2021 is granted to children:

1) minors (under 18 years of age); 2) regardless of their age, if they received a care allowance (addition) or a social pension; 3) up to the age of 25, if they learn or study in Poland or abroad, if these children have not obtained: – taxable income according to the tax scale or capital, with the exception of a survivor’s pension; – or income in the total amount exceeding twelve times the amount of the social pension (PLN 16,061.28).

Child relief can not take advantage income-only persons:

– taxed at 19% flat-rate tax business activity or special sections of agricultural production, – taxed with flat-rate income tax (registered lump sum, tax card).

Persons who also obtained income taxed according to the tax scale (e.g. remuneration for work, sickness benefit, income from private rental) have the right to show the amount entitled to deduct the relief in their tax return.

PIT for 2022 – limits on child relief

The deduction is available to parents and guardians whose income did not exceed in the tax year:

– PLN 112,000 in a married couple (income with a spouse is added up), – PLN 112,000 in the case of single parents, – PLN 56,000 in the case of unmarried persons (also for part of the year).

“If you exercised parental authority in relation to two or more children – the relief is granted regardless of the amount of your income” – explained on the government website.

It was added that the limits also apply to persons who supported an adult child (children) in connection with the performance of the maintenance obligation and in connection with the function of a foster family.

“Parents’ income for the purpose of taking advantage of the pro-family tax relief is understood as income obtained in total in a given tax year: taxed according to the tax scale, from cash capital taxed at the 19% tax rate (e.g. from the sale of securities against payment), from non-agricultural economic activity taxed 19% tax rate, reduced by paid social security and health insurance contributions (flat tax)” – it was indicated.

Child tax credit – how much is it?

The pro-family relief is granted in the amount of:

– for the first child – PLN 92.67 per month (PLN 1,112.04 per year), – for the second child – PLN 92.67 per month (PLN 1,112.04), – for the third child – PLN 166.67 per month (PLN 2,000.04 ), – for the fourth and each subsequent child – PLN 225.00 (PLN 2,700.00).

On the government website, the effect of the relief on a child is presented on the example of a parent with three children. “Then the relief will amount to: PLN 1,112.04 for the first child, PLN 1,112.04 for the second child, PLN 2,000.04 for the third child, i.e. a total relief of PLN 4,224.12 per year” – it was written.

It was emphasized that “the deduction applies jointly to both parents, legal guardians of the child or foster parents who are married”.

Additional refund in case of child allowance

“If you run out of tax to deduct the full amount of the relief you are entitled to, you may receive the difference in the form of additional refund” – indicated on the government website.

It clarified that the amount you can receive is “limited” and “may not exceed the paid deductible National Insurance contributions and health insurance contributions less any flat or flat income tax deductible health insurance premiums.”

These contributions also include social security contributions paid on income covered by: PIT exemption for young people, exemption for returnees, exemption for 4+ families, exemption for working seniors.

It was emphasized that social and health insurance contributions cannot be taken into account, which were: deducted in the tax return PIT-28in the PIT-36L return or have been shown as deducted in PIT-16A.

Child support – how to document it?

Child tax credit can be included in your tax return – the number of children and their PESEL numbers are provided, and in the absence of these numbers – names, surnames and dates of birth of children.

At the request of the tax authorities, you are obliged to provide certificates, statements and other evidence necessary to establish the right to deduct, in particular: a copy of the child’s birth certificate; family court certificates on determining the child’s legal guardian; substitute and the staroste; a certificate of an adult child attending school.

Child relief – what PIT?

To apply for child support, you must submit:

– correct tax return – PIT-36 or PIT-37– together with the attachment PIT/O.

PESEL numbers of children should be provided in the PIT/O attachment, and in the absence of these numbers – first names, surnames and dates of birth.

“If you tax your income together with your spouse, you submit one PIT/O. If both of you are entitled to a relief, but you submit separate tax returns, each of you in the PIT/O attachment enters the amount that you deduct from tax. If the deduction is made only with one of you , the second does not attach PIT / O to his testimony “- explained.

More information can be found on the website tax.gov.pl/pit/ulgi-odczenia-i-zwolnictwa/relga-na-dziecko/.

Main photo source: Shutterstock

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