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PIT-0 for 4 plus families. Who can take advantage of the discount?

PIT-0 for families 4+, also known as PIT-zero for families, has been in force since the beginning of 2022. It is applied to income that will be obtained from January 1 of this year. Who and how can take advantage of the discount? What do you need to know about it?

Pit-0 – co to?

PIT-0 for families 4+ is a relief introduced by the Polish Deal i it can be used by parents with at least four children. PIT-0 may be submitted legal guardians: single parents and married couples, as well as guardians remaining in informal relationships.

The government estimates that over 110,000 parents will benefit from the relief. PIT-0 means exemption from personal income tax and lump-sum tax on recorded revenues, i.e. on an employment contract (full-time), contract of mandate concluded with a company, as well as income from non-agricultural business activity. The sum of income exempt from tax under this relief, as in the case of the relief for young and working seniors, may not exceed PLN 85,528 per year.

PIT-0 for 4 plus families – who can benefit?

The PIT-0 Relief for 4+ families can be used by biological parents, single parents, single legal guardians, married legal guardians, foster parents and parents in an informal relationship. The condition for the possibility of using PIT-0 is having at least 4 children or pupils. The exemption applies to people working on the so-called full-time employment, i.e. a contract of employment, as well as a contract of mandate and business activity taxed according to the tax scale.

More precisely, the relief can be used when exercising parental authority, being a legal guardian of a child who lived with us, being a foster parent based on a court decision or an agreement concluded with the starost, as well as in the case of adult children studying incumbent maintenance obligation or is a foster parent.

Adult children in education can benefit from the discount up to the age of 25 in special cases, such as:

  • failure to apply the provisions on 19% flat tax,
  • failure to apply the provisions of the Act on flat-rate income tax on certain revenues earned by natural persons,
  • not subject to taxation with tonnage tax,
  • failure to obtain income taxed according to the tax scale or 19% tax on the sale of securities, shares (shares) or derivative financial instruments or income exempt from tax under the so-called allowances for young people or allowances for return, in the total amount exceeding PLN 3,089, with the exception of the survivors’ pension.

Importantly, it is not necessary to have four children for the entire tax year to be entitled to the tax relief. If the fourth child was born at the end of the year, the parent has the right to use PIT-0 for 4+ families when submitting a tax return for the entire year, despite the fact that the child appeared in the last month of the tax return.

PIT-0 for 4 plus families – how to get a discount?

You can take advantage of the relief during the year, but its final settlement is made in the annual tax return. Application during the year requires the payer to independently calculate the advance payment or tax, which is related to the achievement of foreign income from work (on the basis of an employment contract or mandate contracts) and income from business activity. In such cases, it is possible to apply the tax relief on its own by excluding the revenues covered by it from the revenues that are subject to taxation.

In the case of using the tax relief in the annual settlement, it is necessary to submit information on the number of children and their PESEL numbers (if there are none, provide the names, surnames and dates of birth of each child who does not have a PESEL number).

Up-to-date information can be found on the government website gov.pl.

Source From: Dziendobry

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