Family bonus plan:
Joint taxation of spouses: option possible in certain circumstances;
1st step: calculating tax on half of the spouses' total income;
2nd step: determining actual joint tax in double the amount of tax calculated in 1st step;
Potential benefits: lower amount of earnings may be moved to a higher tax scale (from 12% to 32% in progressive taxation), effective use of double value of tax-free amount;
Most profitable for spouses when one of them has no income or obtained much less income than the other.
Relief applies respectively to residents of EU / EEA country or Switzerland.
Children surplus:
Anual revenues of parent raising at least 4 children are basically tax exempt up to the amount of PLN 85,528
Sole earner deduction pa.:
Taxation of a single parent: option possible in certain circumstances for a single parent or legal quardian raising children;
1st step: calculating tax on half of single parent's income;
2nd step: determining actual tax in double the amount of tax calculated in 1st step;
Benefits: less earnings of a single parent moved to a higher tax scale (from 12% to 32% in progressive taxation), using double value of tax-free amount (which would not be used, otherwise, in the case of a child not earning at all);
In case of raising adult child until the age of 25, learner, parent may apply concession provided that the child did not obtain yearly income exceeding certain threshold, which is for 2023 - PLN 19,061.28;
Relief applies respectively to residents of EU / EEA country or Switzerland.
Single parent deduction pa.:
Taxation of a single parent: option possible in certain circumstances for a single parent or legal quardian raising children;
1st step: calculating tax on half of single parent's income;
2nd step: determining actual tax in double the amount of tax calculated in 1st step;
Benefits: less earnings of a single parent moved to a higher tax scale (from 12% to 32% in progressive taxation), using double value of tax-free amount (which would not be used, otherwise, in the case of a child not earning at all);
In case of raising adult child until the age of 25, learner, parent may apply concession provided that the child did not obtain yearly income exceeding certain threshold, which is for 2023 - PLN 19,061.28;
Relief applies respectively to residents of EU / EEA country or Switzerland.
Child deduction:
Amounts deductible from anual tax of parent/s, legal guardians or foster parent/s; amounts to be shared respectively by both parents:
(a) up to PLN 1,112.04 (depending on number of months of childcare) - for raising one child; provided that total parent/s' income did not exceed certain thresholds annually (those thresholds do not apply where more than 1 child was raised),
(b) up to PLN 1,112.04 - for each of 2 children raised;
(c) up to PLN 2,000.04 - for 3rd child,
(d) up to PLN 2,700.00 - for 4th child and each of the following ones.
In case of raising adult child until the age of 25, learner, parent may apply concession provided that the child did not obtain yearly income exceeding certain threshold, which is for 2023 - PLN 19,061.28
The parent shall receive the surplus of this relief over yearly tax calculated in his or her yearly income tax return.
Relief applies respectively to residents of EU / EEA country or Switzerland.
Alimony dedcution:
Alimony is tax exempted if received:
(a) for children until the age of 25 as well as other if beneficiary of attandance allowance or social pension,
(b) for other person up to PLN 700 monthly, if alimony was granted by court.
If in employment / pension income p.a.
Both income derived from employment contract and pensions are subject to progressive taxation based on tax scale.
Anual revenues of working senior (men - over 65, women - over 60) are tax exempt up to the amount of PLN 85,528 provided that he or she does not collect pension although entitled to it.
Basically income obtained by the child until the age of 18 is summed up with parents' income for tax purposes; however pensions obtained by a child until the age of 18 are not summed up with parents' income; then the pension is treated as child's income; possibility to use its attributable tax-free amount; survivor's pension obtained by child until 18 is free of health insurance contributions.
