What does the Polish Deal mean for parents?

Relief for large families

The Polish Deal assumes that Parents who are raising at least 4 children will benefit from PIT-0 for families of 4+. This gives each Parent a minimum of PLN 85,528 in PIT-free income. Families can also benefit from an increased tax threshold of up to 120,000. PLN. Importantly, the PIT-0 for 4+ families will also work for foster families and legal guardians raising at least 4 children. In addition, it will be available to Parents who work on a contract of employment, a contract of commission or are self-employed, regardless of whether they are raising children jointly or alone.

Relief for single parents

There are also changes aimed at single parents in the Polish Lada. The previous possibility of settling tax on a preferential basis of the so-called “tax-free” has been eliminated. Joint settlement with the child. This possibility was converted into a tax credit of PLN 1,500 per year related to single parenting. These changes, as well as the PIT- 0 for large families come into effect as of 1.01.2022, which means that you will be able to take advantage of the reliefs when you do your tax return for 2022, i.e. in 2023.

Relief for the middle class

The new legislation also establishes the so-called “new rules. relief for the middle class. It applies to those whose annual income is between PLN 68,412 and PLN 133,629. They will be able to deduct from income an amount that will be determined individually based on the amount of income earned. The relief for the middle class is effective as of Jan. 1, 2022. and applies to income earned since that date. Each person can determine and report to the employer whether he or she wishes to receive relief. If not, this fact should be reported in the form of a request for non-application of relief by the employer. However, if the annual income is between PLN 68,412 and PLN 133, ,629, you will be able to take advantage of the relief in this situation in your annual return.

12 thousand per child

The Polish Deal also introduced a care capital to cover some of the expenses of raising a child. It is granted for the second and each additional child in the family between the ages of 12. a 36. A month of life. The care capital of not more than 12 ,000 PLN is paid before one year or 2 years depending on the decision of the Parent (500 or 1000 PLN/month each). It does not depend on Parents’ earnings and the 500+ benefit received. Parents can use the capital for the purpose of their choice. One solution is to use part of it to collect and bank the baby’s cord blood. There is only one chance for retrieval, during childbirth.

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