Relief for a child 2022. What will change?
Let’s start with the tax situation that lasted until 2021 inclusive. Until now, people with the lowest incomes could deduct a child allowance in the amount of PLN 1,112, and for two children it was PLN 2,224. Similarly – for the third child PLN 3,336, etc. They received such money also when the tax paid did not cover this relief. Child tax relief in 2022 was related only to the amount of ZUS and health contributions paid. When they were higher or equal to the relief, the deduction was calculated in full.
This was the case until 2021 inclusive. But from 2022, the Polish Deal is introduced. What will change? Among other things, a tax exemption is introduced to the income of 30,000. PLN per year. As a result, the employee earning the lowest national income will not have withholding tax. Only social contributions will be taken into account. This means that the social contributions would have to be equal to or higher than the child allowance. In the case of people earning the lowest national income, this condition cannot be met.
Child relief 2022. Parents will be disadvantaged
So the parents will be disadvantaged. It’s about those who earn the least. They will only seemingly earn more. With the introduction of the Polish Deal, they will be entitled to PLN 167 net per month more. But after the PIT settlement, the majority will not get the child tax relief in full, because they will not meet the condition for receiving it.
MORE ABOUT CHILD RELIEF AND RELATED REGULATIONS HERE