Instead of the announced facilitations, the Polish Order introduced chaos. The teachers were the first to feel the problemswho saw lower payouts 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 drop in the ocean of needs. Problems are already being reported by spouses who do not know whether they will be able to benefit from middle-class tax relief.
Discount for the middle class will be available to people whose annual gross income is between PLN 68,412 and PLN 133,692.. – In the case of employees, the relief is settled by the employer and the PIT payer. The employer is obliged to take into account the middle class allowance, calculating the amount of the PIT advance payment every month in each case when the employee’s monthly income from the employment relationship is between PLN 5,701 and PLN 11,141, unless the employee submits an application to the employer not to apply the allowance – explains the accountant Krystian Wodniak.
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After exceeding the amount of revenues of PLN 133,692 with one employer, the relief should no longer be charged, as it may only be applied if the sum of revenues obtained in the tax year does not exceed the amount of PLN 133,692.
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– Such a situation may occur, for example, when in the first months of the year an employee receives a high annual bonus for the previous year’s achievements, and his monthly income in the remaining months ranges from PLN 5,701-11,141, so they qualify for a relief, while the sum of revenues from the beginning of the year will exceed PLN 133,692 – explains Małgorzata Samborska, partner and tax advisor at Grant Thornton in the explanations to the tax relief.
A relief for the middle class will be settled in the annual tax return. – When accounting for PIT for 2022, at the end of 2022 or at the beginning of 2023, the version of the tax declaration should be updated, which will include an additional item where you can calculate and enter a middle class tax relief. This relief will be deducted from your income, on the same basis as today social security contributions are deducted. I consider it unlikely that a new appendix to the tax declaration will be prepared in order to settle the allowance for the middle class – says Krystian Wodniak.
See also: The Ministry of Finance announces that the Polish Order will be quickly patched for retirees
The Polish Order and the joint settlement of spouses
The spouses have doubts about the settlement. Readers of Business Insider ask whether middle-class relief applies to marriages in which one person is in the relief bracket 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 deduction if he meets the conditions for its application (he obtains revenues from the indicated sources and his annual revenues range from PLN 68,412 to PLN 133,692) – explains the ministry.
Also, in a situation where one spouse earns income qualifying for middle class relief and the other earns less, or if one spouse is over the credit limit and the other is still in the range, middle class relief may be applied for joint settlement.
– However, if there is a disproportion between the spouses’ incomes and e.g. one exceeds the income limit and the other does not achieve any income, they can also benefit from a deduction. In this case, however, half of the total income of both 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 when it is met, each of them will apply a discount calculated on half of their joint income – indicated the Ministry of Finance.
See also: PIT-2 – to submit or not? The Ministry of Finance has an advice
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