September 2024 brings further support to pensioners in the form of fourteenth retirement, which is already successively paid. Unfortunately, as in erstwhile years, this benefit is reduced by income taxation and wellness contribution, which causes many seniors to receive lower amounts than they expected. The good news, however, is that any of this money can return to their pockets in the form of a taxation refund. Let's see who can number on a refund and what amounts are involved.
14. Retirement: What is and what is it?
The fourteenth pension is simply a one-off, additional benefit paid to pensioners and pensioners in September, which aims to supply financial support to seniors. In 2024 the maximum amount of fourteen is PLN 1780.96 gross. Nevertheless, not all elder will receive the full amount, as the “gold for gold” rule applies, which means that persons with higher pensions (over PLN 2,900 gross) receive a reduced benefit.
Taxation of the Fourteenth Retirement: What are the rules?
As with another pensions, fourteen pensions are taxed and charged with a wellness contribution. This means that elder citizens receive net amounts in their accounts which are lower than the declared gross benefit. Many pensioners have already expressed their dissatisfaction about this, calling for the 14th pension to be exempt. Despite many discussions and appeals, the government has decided to keep the existing taxation rules.
Repayment of taxation on fourteen and thirteen: erstwhile can he be expected?
Although fourteen pensions are subject to income tax, part of this amount can be recovered in the form of a taxation refund. This reimbursement will be possible only after the yearly settlement of the PIT, the earliest in the second half of February 2025. That means the seniors will gotta wait a fewer more months before they see that money in their accounts.
It is worth noting that the taxation refund besides applies to the thirteenth pension paid early in the year. In both cases, the amount of the reimbursement will depend on the full income of the pensioner in a given year and the applicable taxation credits.
Who can number on a taxation refund and how much is it?
Not all pensioner gets a taxation refund. The key origin here is the full income, which in the case of pensioners consists of a basic pension and additional benefits, specified as thirteen and fourteen. If the sum of yearly income exceeds the tax-free amount of PLN 30 thousand, elder citizens cannot number on a refund of the taxation advance.
For those whose basic pension is at least PLN 2600 gross, the chances of taxation reimbursement are slim. On the another hand, seniors with lower benefits can anticipate a refund, although its amount depends on the full amount of pensions received. For example, a individual who received thirteenth and fourteenth in the amount of PLN 2813.90 can number on a maximum of PLN 428 return. If the additional benefits amounted to PLN 3173.90, the return will decrease to just PLN 68.
What are the additional reliefs and how can they affect the return?
The amount of the taxation refund may besides be dependent on another taxation credits which the pensioner benefits from. It is so worth noting the anticipation of benefiting from reductions that may further reduce the taxation base and increase the taxation refund. These include, among others, rehabilitation relief, household relief or medicine relief. In order to make maximum usage of available reliefs, it is worth consulting the taxation advisor or consulting the taxation office.
Although the fourteenth pension is taxed and reduced by contributions, pensioners have a chance to recover any of this money in the form of a taxation refund. However, it is crucial that the full income does not exceed the tax-free amount and that elder citizens are aware of the anticipation to benefit from additional reductions. taxation reimbursement from the 14th and 13th pensions will be possible only after the yearly PIT, which is the earliest in February 2025.
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Repayment of taxation on 14th retirement: erstwhile and how many elder citizens can they recover?
