Sunday, September 7, 2014

Deputy Minister of Finance provides: The cost of higher education allowances for children … – Money.pl

Deputy Minister of Finance provides: The cost of higher education allowances for children … – Money.pl

2014-09-06 11:26

Author: (PAP), (MR), (AZ)

 Deputy Finance provides: The cost of higher education allowances for children relatively low to benefit

Artur Radziwill, the deputy finance minister [Photo: Ministry of Finance]

In the coming days the draft amendments is expected for inter. Artur Radziwill said that the primary objective of the project is to support fertility Poles. In his opinion, beyond the incentive to have more children change will also contribute to reducing the level of poverty in Poland, reduce social inequalities and reduce the so-called. tax wedge for low-income families. Money.pl determine the amount of the promises of the Prime Minister: a change proposed by the government is expected to benefit about 1 million 200 thousand. families. So only every seventh family.

By Radziwill cost of changes to the budget, estimated by the Ministry of Finance in the amount of approx. 1.1 billion zł, is the relatively small in relation to the effects and costs of other ideas that could be applied .

– For low-income families who are considering having a second or third child higher relief will be a very serious financial incentive. Research shows that if the financial situation is not a key factor in the decision to have a first or even second child, whereas the decision to the third child is usually more thought is in this respect – said the deputy minister. Families who are planning a third child, usually wondering whether it will be able to afford it or not, this will involve overcharges.

By Radziwill for some parents with low incomes change is associated with a substantial injection cash, corresponding to even two months wages. For families with two children can be a serious impulse (to), to have a third child. In the case of low-income families who have one child, the higher relief may encourage a decision to have a second child – said the deputy minister.

He stressed that the change in the obvious way also reduces the level of poverty in Poland, which usually affects just the family many children. Relief will go exactly where you are the highest needs. We do not want to have a very diverse population in terms of wealth, in which a large group is at risk of poverty – he noted.

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He also noted that the Polish problem, affecting mainly low-paid, is so high. tax wedge. It’s about the difference between the cost of labor for the employer, and the worker who gets the net. While the average income for Poland not really differ in this respect from the OECD average, whereas in the case of the lowest paid workers wedge represents a significant part of the remuneration.

Meanwhile, at least for people earning additional income in the amount of 100-200 gold may be a key issue for example. to decide whether to work legally or not – said Radziwill. According to him – after making changes – in the case of families with the lowest incomes at least two children, the tax wedge is almost eliminated. Employees will receive reimbursement of relief because that will cover the costs of premiums paid by them; and the wedge will be limited solely to the cost of premiums paid by the employer.

This means that it will change the balance of benefits and costs in terms of legal employment and remain in the gray area. Legal employment will be more attractive. The employee will have access to the social security system with all the privileges and benefits, but thanks to the relief does not suffer from the additional costs – explained Radziwill.

A spokeswoman for the Ministry of Finance Wieslaw Dróżdż told PAP that in the coming on a draft of the reductions of the children will be sent for inter.

Prime Minister Donald Tusk late August presented in parliament plans for the coming months. Among them was a proposal for an amendment that would allow use of 100 percent. relief for children, including those who currently due to limited income, do not have this chance. This would mean that those who do not pay such a high PIT (…), they will have money in the form of a refund. You pay what it lacks in order to be able to enjoy the relief. This is a very serious change – he said. According to his calculations, a family with three children, he maintains a father earning 1.7 thousand. zł, will receive 4.2 thousand. zł return.

As promised the prime minister, relief for the third and subsequent child will be increased by 20 percent. Relief for the third child will increase from 1 668 to 2 thousand zł. On the fourth and subsequent child will increase from 2 224 zł to 2.7 thousand. zł.

The new relief will be used on the principles according to which a person earning less and not paying sufficiently high taxes will be able to obtain a refund from the state coffers. For this change will benefit the poorest the most.

For example, a family with three children, in which ociec earns 1.7 thousand. zł (mother deals with children), the joint settlement for 2014. instead of 430 zł tax deduction is to receive up to 4.2 thousand. zł return.

The government wants to tax this year every Polish family with children to fully exploit relief to children regardless of income. Now in Poland – according to CSO data – there are nearly 8 million 200 thousand. families, including a little over a million with three or more children.

The change proposed by the government is expected to benefit about 1 million 200 thousand. families. So only every seventh family.

Source: Money.pl based on data from the Central Statistical Office and the Ministry of Finance .

The scale of returns is now very diverse and varies depending on the earnings of parents and number of children. tax benefits associated with this relief appear when monthly gross income from work exceeds 1 275 zł. Then begins to be charged tax payable Treasury. Only then obtains the parent may deduct the amount of the allowance for children, the benefits of this title gradually increase with your income and tax charged at the point where the amount equals the maximum value of the relief afforded to children.

Now relief for the child (ie, in 2013.) included only parents who together have income up to 112 000 zł per year. This allowed to reduce their tax by 1 112.04 zł for 1 child, about 2204.08 for 2 children. For one child, parents can deduct 92,67 zł per month, ie after 1112.04 zł per year. Allowance for the third child were higher by 50 per cent. than a deduction for the first and second child individually.

For the third child, taxpayers could deduct the amount of 139 zł per month, or year 1668.06 zł. For the fourth and each subsequent child, parents can deduct 185.34 zł per month, or 2224.08 zł per year.

The information obtained in the Ministry of Finance that the deduction due to changes in the settlements relief to children will increase in next year by 1.1 billion. In the case of large families is supposed to be about 20 percent. More.

means a change in the average amount of return from the current 1 668 zł for about 2 000 zł for families with three children (about 332 zł more) and 2 224 zł 700 zł 2 for families with four and more branches (about 476 zł more). It is worth noting that the maximum extent permitted by law, income level yet eligible child tax credit that is 240 thousand. zł for marriage refund will jump by about 788 dollars.

The average tax refund for the poorest and large families will grow by about 916 dollars.

Of course the greatest benefit małozarabiające reach people who have three and more children. For example – a single mother who earns a monthly amount equal to the minimum wage and raising four children, not only do not pay taxes, but receive from the treasury of more than 3.8 thousand. zł.

An additional benefit will be faster tax return for large families. As announced Michal Szczurek, Minister of Finance, they will have to wait to recover money overpaid fikusowi only 30 days, not three months, according to the current legislation.

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