Tax credits and other deductions provided for in the settlement for 2021. The most important information

May 2 is the deadline for submitting PIT tax returns. It is well known that “the more we earn, the more we pay taxes”, but this is only part of the truth. The PIT Act provides a number of benefits / deductions that allow the tax administration to reduce the amount without analyzing complex rules. Rehabilitation relief, internet relief, pro-family assistance – these are the first opportunities for “tax savings”.

Pro-family help

Pro-family support is another convenience for the child. This involves a taxpayer who is a parent or legal guardian (or who acts as a foster family). to receive taxable income in accordance with the tax scale.

Pro-family support is available but also for the maintenance of adult childrenwho has received a service allowance (supplement) or social pension (regardless of age) or is in education (up to 25 years of age) in accordance with separate rules.

The basis of the described tax credit is also the obligation to withhold.

The discount is available in the following amounts:

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

There is no family tax deduction only for taxpayers who receive taxable income with a fixed tax of 19% or a fixed rate of income tax (registered lump sum, tax card) at the expense of entrepreneurial activities or special departments of agricultural production.

To pay child support, you must submit a PIT-36 or PIT-37 tax return and a PIT / O supplement (information on deductions).

Ease of cancellation

The cancellation benefit applies to persons who are residents of Poland for tax purposes (they are Polish tax residents) and at the same time receive a certain foreign income, to which the proportional deduction method is applied.

The amount of canceled benefits includes foreign income (income):

  • labor relations, labor relations, homework and cooperative labor relations,
  • from activities carried out in person,
  • entrepreneurial activity taxed in accordance with the tax scale, fixed rate or one-time tax on recorded income;
  • property rights in the field of copyright and related rights in the sense of separate provisions

– where the proportional deduction method is applied.

The proportional deduction method means that income earned abroad is taxed in Poland, however The tax paid abroad is deducted from the tax payable in Poland. This deduction is only possible up to the amount of tax attributed to the income earned in a foreign country.

Thermodernization relief

Thermodernation relief allows PIT to deduct income from income (including taxpayers with a tax scale or fixed tax) or a one-time income from fixed income. Amount limit – 53,000 PLN.

It is given to the owners (and co-owners) of single-family homes who decide to invest in thermal modernization. Reduces deductible income or taxable income.

Thermodernation relief covers the cost of construction materials, equipment and servicesmust be paid for 3 consecutive years from the end of the tax year in which the first expenses were incurred.

Rehabilitation relief

Rehabilitation rehabilitation is provided to people with disabilities and people under their care.

The main issue is the amount limits. Some of the costs of rehabilitation benefits are unlimited (for example, staying at a spa treatment facility or paying for a sign language interpreter). The law also uses the concept of limited costs.

Using a passenger carowned (jointly owned) by a disabled person or a taxpayer under the care of a disabled child under the age of 16 or keep a helper dogThe provisions of the Law on Vocational and Social Rehabilitation and Employment of Persons with Disabilities are an example of expenditures limited to 2280 PLN in a tax year.

A special element of rehabilitation is drug relief.

Allocations for individual pension security account (IKZE)

Payments to IKZE can be deducted from it:

  • taxable income in accordance with the tax scale,
  • fixed taxable income (19%),
  • one-time taxable income from registered income

Payment limit to IKZE in 2021:

  • 6 310.80 PLN or
  • 9,466.20 PLN (for people engaged in non-agricultural activities)

Internet tax deduction

The Internet discount can be deducted from the taxable income or the one-time taxable income from the registered income according to the tax scale. The withdrawal limit is 760 PLN per year.

Internet discount is not given every year. It can only be used for two consecutive tax years.

Withholding for donations

Donations allow for tax breaks, but coverage is limited – the total deduction for all donations is only 6% of income / revenue. The general limit mentioned above covers not only donations for typical charitable purposes, but also donations for purposes such as religious worship and vocational education.

If you want to learn more, check »

2022 costs after changes. Newspaper Prawna Guide 1/2022 (PDF)

Leave a Comment