The pro-family relief

For 2014, in the tax return for 2013, the pro-family relief will be different as per previously billed.

Its use will depend primarily on the following: the number of children you have, the amount of income of the taxpayer and whether you are married.

If you have one child, the right to family allowance will depend on the amount of income of the taxpayer. The legislature was amended in the respect of certain income limits – for a person who is married for the entire tax year, the total income of the spouses cannot exceed 112,000.00 PLN. The same limit applies to a person bringing up a child alone. Those remaining in a partnership, separated or divorced (provided that one of the parents has not been deprived of parental rights) is a limit of income not exceeding 56,000.00 PLN per year. After exceeding the specified limits of the right to apply, you are then not entitled to family allowance.

For the purpose of calculating these limits, you have to take into account the amount of taxable income earned in a given taxable year by using the progressive tax scale (income reported on the forms PIT-37 or PIT-36), as well as taxable income linearly reported on Form PIT-36L and income from capital gains reported on Form PIT-38. The resulting income is reduced by the amount of social security contributions paid in a given year.

If the income of a taxpayer having only one child is calculated in accordance with the above rules and does not exceed the statutory limits, he/she is entitled to the benefit of family allowance in the amount of 92.67 PLN per month (1,112.04 PLN for the whole year).

If you have two or more children the income criterion is no longer valid. With two children the amount of relief remains unchanged, i.e. 92.67 PLN per month for each child.

The maximum afforded to a family allowance increases with each subsequent child. With three children, the first two children are entitled to relief in the basic amount, while an additional third child is entitled to relief in the amount of 50% higher than the base, i.e. 139.01 PLN per month, and one 668.12 PLN per year. At the fourth child and each subsequent child thereafter, are entitled to relief in the amount of 100% above the base, i.e. 185.34 PLN per month and if two children 224.08 PLN per year.

The final amount of family allowance is the total reliefs entitled for each individual children.

Other conditions to benefit from relief remain unchanged in comparison to previous years.

Remember that the pro-family relief tax is deducted from the maximum entered in the annex to the tax return PIT/O.