For years, single parents were able to settle income tax payments on preferential terms, which meant that they practically calculated PIT from half of their income. The Tax New Deal eliminates the possibility of such settlement, treating the current relief for single parents as a way of tax optimization, which is not to be the case in the new order. It is true that this group of taxpayers gains a relief of PLN 1,500 in return, but in most cases it does not compensate for the lost profits.
In the tax New Deal, solutions favorable to taxpayers alternate with unfavorable ones. An example of the latter is the elimination of preferences for annual tax settlements for mothers and single-parent fathers – regardless of circumstances: as a result of the death of a spouse, divorce, separation and other legal circumstances. It is true that this loss in tax privileges is to be compensated for by a new tax relief of PLN 1,500 for this group of taxpayers, but while it satisfies people with low incomes, the balance is clearly negative in the group earning more than the national average.
Here’s how a tax advisor sees it:
At the last moment, before voting on the Polish Deal, the government decided to change the rules for accounting for income tax by single parents. Despite the introduction of an additional allowance, there will be less money in the wallet of parents and guardians.
Currently, taxpayers who are single parents may settle income tax on a preferential basis. This is where they divide their income in half, put it in the tax scale, calculate the tax due and multiply it twice.
For example, a parent or guardian earned $ 100,000 a year. zlotys, i.e. the amount falling within the second tax threshold. However, thanks to the existing solutions, it can divide its income in half, which means that the tax base is PLN 50,000. zlotys. As a result, it “drops” to the first threshold and the interest rate is 17%, not 32%. In addition, they will use the free amount of PLN 3,091 for themselves and for the child twice. This is undoubtedly a very beneficial solution.
The Polish Order introduces significant changes. If, with the new tax scale, the possibility of dividing the income in half and the preferential relief were retained, the tax-free amount for a single parent would be 60,000. PLN, and the amount of the second tax threshold as much as 240 thousand. zlotys.