Problem with the relief for the middle class: 02/10/2022 Account monthly? annually? who should submit an application for not taking into account the PIT-2 tax relief

From the beginning of this year, a new tax relief has been in force, popularly known as the relief for the middle class. It is intended to compensate for the inability to deduct part of the health insurance premium from January 1, 2022 – but not all taxpayers, which, apart from the novelty aspect, is probably the source of the greatest misunderstandings. Most of the time concerns the submission of PIT-2 or not and the application for not taking into account the tax relief. We explain these issues.

The relief is available only to natural persons who earn income from two sources: a code employment contract (full-time employees) and entrepreneurs. Persons earning on the basis of contracts of mandate or for specific work, pensioners, etc. are not entitled to this relief. But also among full-time employees and entrepreneurs, not all will benefit from the relief. Employees are limited by the income criterion, entrepreneurs – both the amount of income and the method of taxation; the relief is available only to those who pay the activity tax based on the rates of the tax table.

The taxpayers from these two are entitled to relief if the sum of their income is at least PLN 68,412 and does not exceed PLN 133,692. It can be billed monthly – and that will be the standard – or annually. In practice, the employer will take into account the relief when calculating the remuneration of employees earning gross from PLN 5,701 to PLN 11,141. It will do this automatically, unless the employee applies for the payer not to reduce the income by the amount of the employee allowance.
The decision depends on the employee himself. As a rule, it is not necessary to submit such an application. The only logical justification for submitting such an application is the fear that for some reason the income earned will exceed the income limit per year, and, consequently, you will have to return the tax credit after submitting the annual tax return. Who can it be about? For example, employees with incomes close to the upper limit who expect high bonuses or rewards throughout the year; if they cause the annual income to exceed PLN 133,682, the allowance for the middle class will have to be returned.
The same applies to employees with the lowest incomes – if, for example, they do not work for a year or change to a less-paid job and do not exceed the lower income limit (PLN 68,412), they will have to return the middle class allowance and be content only with a tax reduction resulting from the new tax-free amount. tax (PLN 30,000), which everyone is entitled to.

If you want to avoid such situations, you can apply for no tax relief and, if your annual income falls within the middle-class tax bracket, you can only benefit from it on your annual tax return.
The same is true for entrepreneurs. They are the payers themselves, so they do not have to submit any additional applications, but decide whether they will deduct the middle class allowance every month or reduce their income as part of the annual tax return.
You should also know that in the case of full-time employees, the part of the remuneration under the employment contract to which 50% applies is not included in the limit of remuneration entitling to the relief. costs of obtaining revenues from copyright, e.g. some inventors, journalists, teachers, etc. It must be remembered especially by people with gross earnings close to the lower limit (5 701 per month) – deducting a part of the remuneration to which copyright applies may result in on a yearly basis, their income will be lower than PLN 68,412, so they will not entitle the middle class to a tax relief.
The application for the payer not to reduce the income by the amount of the employee allowance must be submitted to the employer before receiving the first remuneration for work in 2022.

By the way, let’s add that the confusion also applies to the submission of or not to the employer of another PIT-2 statement. This is just a document before the introduction of the Polish Tax Order, which is used to correctly determine tax advances – so that the payer takes into account the tax-free amount in this process. It is therefore a statement that such an amount is no longer taken into account by another payer, e.g. due to retirement pension, other work, business activity or rental, on which he himself is obliged to pay tax advances calculated from the tax table.

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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