Instead of the stated facilities, the Polish system introduced chaos. The teachers were the first to feel the problemswho saw lower payments on their accounts. The government has already announced that it will prepare an appropriate regulation to fill a gap in the regulations, but it may turn out to be just a point in the ocean of needs. Problems have already been reported by couples who don’t know if they will be able to take advantage of the middle-class tax break.
The middle class discount will be available to people whose annual gross income is between PLN 68,412 and PLN 133,692.. In the case of employees, the exemption is settled by the employer and the payer. The employer is obliged to take into account the middle-class allowance, calculating the amount of the advance payment from the PIT every month in each case when the monthly income of the employee from the employment relationship is between PLN 5701 and PLN 11141, unless the employee submits an application to the employer that the allowance does not apply – the accountant explains Christian Wodnyak.
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After exceeding the amount of revenue of PLN 133,692 with one employer, the exemption must not be collected, since it can be applied only if the total revenue received in the tax year does not exceed the amount of PLN 133,692.
– Such a situation may occur, for example, when in the first months of the year an employee receives a high annual bonus for the achievements of the previous year, and his monthly income in the remaining months varies between 5701-11141 PLN, so he is eligible for relief, while the sum of Revenue from the beginning of the year will exceed PLN 133,692 – explains Małgorzata Sambourska, partner and tax advisor at Grant Thornton in Explanations for Tax Credit.
Relief for the middle class It will be reconciled on your annual tax return. – When calculating personal income tax for 2022, at the end of 2022 or at the beginning of 2023, the version of the tax return must be updated, which will include an additional item where you can calculate and enter a tax exemption for the middle class. This exemption will be deducted from your income, on the same basis that Social Security contributions are deducted today. I think it is unlikely that a new tax return supplement will be prepared in order to settle benefits for the middle class – says Christian Wodniak.
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The Polish system and the joint settlement of the spouses
The spouses have doubts about the settlement. Business Insider readers wonder if the middle-class exemption applies to marriages in which one person is in the comfort zone and the other is not.
Here the doubts are explained by the Ministry of Finance. – In the case of joint taxation of spouses, each spouse may benefit from the discount if he fulfills the conditions for its application (it receives income from the indicated sources and its annual income ranges from 68,412 PLN to 133,692 PLN) – the ministry explains.
Also, in the event that one spouse earns income that qualifies for a middle-class exemption and the other earns less, or if one spouse has exceeded the credit limit and the other is still in range, the middle-class exemption can be applied for joint settlement.
– However, if there is a disparity between the income of the spouses, and for example one of them exceeds the income limit and the other does not generate any income, they can also benefit from the discount. However, in this case, half of the total income of the spouses (from full-time work and non-agricultural business activities) must be at least PLN 68,412 and not exceed PLN 133,692. This is a condition for applying the deduction and each will apply a deduction calculated from half of their joint income – as determined by the Ministry of Finance.
See also: PIT-2 – to deliver or not? The Ministry of Finance has advice
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