Home » Business » Major Changes to Tax Deductions Impact Household Budgets: Loss of Kindergarten Fees Deduction

Major Changes to Tax Deductions Impact Household Budgets: Loss of Kindergarten Fees Deduction

The state announced that people will have to humble themselves and start saving in a big way. For many years, it has not been possible to draw up a budget that would not end up with a deficit of hundreds of billions of crowns, which is already viewed with suspicion abroad. At the same time, there is a danger that soon no one will want to lend to us, or only at a high interest rate. And it is also true that the state has only one money, and that is from the taxpayers. So, on the one hand, they have to choose more and on the other hand, give out less of them.

A significant amount is gone

The result is painstakingly sculpted consolidation package, in which there are literally hundreds of measures, while the Czechs are gradually finding out how much it will affect them. It is processed in a rather confusing way, so that next to absolute trifles, there are very important things that, however, fit in at first glance. Many may not find out until next year how much their household budget will be rounded up.

Some measures really bite into your finances with great force. One of them is the canceled kindergarten fees, which many people are shaking their heads over. Until now, it was possible to deduct the costs of placing a child in preschool from your taxes. At the same time, it is clearly a matter that supports the employment of mothers, which the state supposedly values ​​so much.

People generally don’t know much about the various tax credits, so they don’t really realize that they are effectively losing a lot of money. This year, they could deduct 17,300 crowns from their taxes as part of the kindergarten fees. This is the equivalent of the minimum wage, which will increase, so next year it would already be 18,000 crowns. In real terms, this means you paid this amount less in taxes. So you have this money left.

Foto: Shutterstock

They relied on it

From next year, however, you will not be able to claim the school fees, so you will lose the approximately 18,000 crowns. “When I first saw it, I couldn’t believe my eyes. Not only have they not increased our parental allowance for years in this inflation, but now they are going to cancel this family support? Every month we are happy to come out and this is a big line over budget,” says Mrs. Klára, whose husband used this tax discount in full.

However, the state argues that, in fact, this support was mainly used by middle-income households, for whom it was a great advantage. They had something to deduct the discount from, since they earn so much that they have to pay a significant income tax. However, low-income households do not earn that much, and in fact they had nothing to deduct from the school fees.

Read also: Each household will lose 8,300 crowns per month. The state has already decided, you won’t do anything about it, so pay

But this is a rather strange argument anyway, because the middle class needs help in this regard, and to some extent those who do not have such high incomes could benefit from it. Anyway, nowadays you pay for almost any kind of kindergarten, in the range of one to two thousand crowns per month, regardless of the private ones, which are even more expensive.

Foto: Shutterstock

2023-10-17 16:00:00
#cancel #great #financial #advantage #Czechs #household #suddenly #loses #thousand #crowns

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.