Deductions from Tax – What Tax Benefits do You Have?
Tax deduction is a topic that systematically arouses interest especially at the beginning of the year. It is then that the period of submission of obligatory annual tax settlements begins, at which we give written testimony for the entire previous year. Many taxpayers hurriedly search for information about the tax breaks existing in Polish law, which we are entitled to for certain things. So what tax breaks do you have?
As is well known, if we achieve income from a full-time job or contract , and also when we run our own business – we are obliged to annually testify income tax. To find information about tax deductions and deductions, you do not have to look for a long time, they are clearly defined by the law. There is still a lot of time to start the testimony period, but it is worth to learn about the areas in which you can apply the benefits, as well as develop awareness, which will relieve our portfolio a bit. We deduct the part from the tax base, and part from the tax itself. Discounts can be deducted by everyone, regardless of whether they earn a minimum wage or a national average .
In 2018 tax was deductible in the following 6 categories:
Family friendly relief
All taxpayers who give a testimony using the PIT-36 or PIT-37 form may receive a child relief. The requirement is to be a parent, legal guardian or foster parent who lives with his child under one roof during the tax year for which we are responsible. Relief also applies to people who do not settle according to the flat rate, tax card or flat tax. Relief is generally characterized by the following conditions.
- The child must be under the age of 18 at the time of the testimony
- The relief is especially due to a child who is under 25 years of age, if he or she continues education and does not achieve income above PLN 3089
- The income of the taxpayer and his spouse can not exceed the threshold of PLN 112 thousand in the tax year
- The income of a non-married taxpayer is determined per person and can not exceed PLN 56 thousand in a tax year
- The income of a single parent taxpayer has a maximum threshold the same as in the case of marriages – 112 thousand zlotys in a tax year
What is the pro-family relief?
- For one child – PLN 92.67
- For two children – PLN 92.67 each
- For three children – PLN 92.67 for the first two children and PLN 166.67 for the third
- For four and more children – PLN 92.67 for the first two children, PLN 166.67 for the third and PLN 225 for the fourth and each subsequent
When completing the PIT testimony in order to obtain family relief it is necessary to complete the PIT / O printing.
2. Relief for a health insurance premium for ZUS
The deduction from tax can also take the form of deduction for contributions paid for health insurance.
- People working on a full-time basis or on the basis of a civil law contract, if they want to get relief, are required to show the appropriate amount of health deductible health contributions. At present, it amounts to 7.75% of the contribution base, by entering it in PIT-11
- It is worth knowing that you can deduct only those health contributions that have actually been paid in a given tax year and we have proof. For employees, it is enough that the contributions in PIT-11 are consistent with the certificate issued by the employer, while the entrepreneurs themselves should show a certificate from ZUS or confirmation of transfers
- Entrepreneurs are in a privileged position. The provisions provide for them the possibility of deducting arrears of ZUS contributions paid in the year of filing a tax return
- Contributions are deductible only when they are paid for!
It is worth noting that ZUS insurance premiums are the only ones that can be tax deductible. The remaining contributions, i.e. retirement, accident, sickness and disability pensions, are deducted from the value of our income.
3. Relief on the Internet
This is a relatively new type of relief, which the taxpayer can only use for two years in a row. In other words, we only have the right to take advantage of the Internet tax relief. It is available only to those who settle using PIT-36 and PIT-37 by adding the PIT-O attachment. In this way, we can settle a maximum of 760 zlotys at a time.
4. Relief for donation
This is an important change, because in the predecessor of years it was impossible to deduct the donation from the costs of obtaining income. However, there has been a change since last year – hence this section in our text. In the relevant provisions that regulate issues related to personal income tax, there are, however, clearly identified and listed specific goals for which we can obtain a tax relief. These are the following goals for which the Polish taxpayer donates:
- Public order organizations – all organizations declaring action in the sphere of public order, on which the regulations allow the donation of donations and donations. We must have a documented proof of payment to the account of a particular organization, if it is a cash donation. If it has been transferred in a different form – a statement of the recipient is necessary, which confirms the fact of obtaining a gift from the person filing the tax return. It is necessary to specify any data that will facilitate the identification of both the organization and the donor
- Blood donation – if you are an honorary blood donor, this is another opportunity to get a tax credit. Its value is calculated on the basis of an equivalent – PLN 130 corresponds to a liter of devoted blood. The fact of donating blood must be documented at the appropriate blood donation point or other unit that offers the possibility of donating blood.
- Religious objects – the last possibility to get a tax credit for donation is to donate to any religious worship unit. The condition is to register the cult object as a religious association and – in the same way as above – to have the necessary proof of payment of the donation or appropriate statement of the recipient (eg priest) if the donation did not have a monetary form.
Finally, it must be remembered that the value of a given donation can only be deducted from the amount not exceeding 6% of income in the tax year.
5. Relief for people saving on IKZE
Under this abbreviation, of course, there is an Individual Pension Security Account. Payments for them are also subject to concessions, which are made using the following PIT forms: PIT-36, PIT-36L, PIT-37 and an additional PIT / O attachment. It is also mandatory to attach payment documents, which can be any document intended for this. In the fiscal year 2017, the amount that was deductible amounted to exactly PLN 5115.60 . As in other cases, there are no premiums for which we have already received a refund in any form.
6. Rehabilitation relief
The last option to deduct tax is the costs we had to pay for rehabilitation and, moreover, care for a disabled person. Certain expenditures may be deductible if they do not come from the NFZ, the company’s social benefits fund, the State Fund for Rehabilitation of Disabled Persons. The costs for which we have already received a refund by another route are also not subject to payment. What costs are eligible for rehabilitation relief at all? These include:
- Adaptation of motor vehicles to the requirements related to disability
- Paid travel by public transport due to your stay at: colonies and camps for disabled children under 25 years of age, rehabilitation stays and health resort institutions
- Paying a sign language interpreter
- The costs of medicines prescribed by a doctor, counting the difference between their actual cost by 100 zlotys (for example, the cost of medicines in the year amounted to 560 zlotys, so the discount is 460 zlotys)
- Nursing care at home
- Adaptation and equipment of flats for the needs of a disabled person
- Charges for stays in treatment in health resorts
- Costs of scientific materials
At the moment, there are no signals that the content or form of tax concessions should change during the PIT settlement. So let’s remember the above examples at the beginning of the next, 2019!