• 02/03/2023
• By wizewebsite
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Discount on child and tax bonus - Aktualne.cz<

Discount on nourished children in a common household - officially called tax advantage - has risen in recent years.

For 2017 revenue, the tax discount for the first child remained at 13,404 crowns per year, but for the second child increased by 200 crowns per month to 19 404 crowns a year, for the third and each other child by CZK 300 per month to CZK 24,204 per year.

For income for 2018, it also increased to the first child - by 150 crowns per month to 15 204 crowns per year.Higher tax advantage for the first child was first reflected in the payout for January 2018, for self -employed persons only in the tax return filed at the beginning of 2019.

For revenue for 2019, 2020 and 2021 remains a tax advantage of the same amount.

Entitled to a child's tax discount

The condition for using the discount is that it is a so -called nourished child living with a taxpayer in a common household.A temporary stay of a child outside the household - for example, traveling around the world - however, will not deprive you of a discount.

Online tax return

Take advantage of our simple tax calculator and solve your tax return for three handles.

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You are only entitled to a discount for calendar months at the beginning of which you meet both conditions ("nourishing" and common household).In the month when a child was born, a discount can always be applied.For example, at the end of August, you can deduct five twelfth annual discounts from taxes.

If a child in one household nourishes multiple taxpayers (typically mother and father), the tax advantage may be applied to the same child in the same calendar month or year only one of them.

The little -known option is that a tax benefit may be applied, for example, by a grandmother or grandfather, if the child's parents do not have income from which they could apply this benefit (and on the contrary grandparents have such income).

The "nourished" is mainly a child who is minor (ie until 18 years of age).The boundary can be moved until the age of 26, if a child "consistently prepares for a future profession" or if he cannot study or work because of illness, injury or long -term unfavorable health condition.

In principle, the study at secondary and universities in the Czech Republic or abroad is considered to be a "systematic preparation for future profession", if the Ministry of Education is based on the Study in the Czech Republic.

Exceptions are long-distance, distance, evening or combined study at secondary (not universities), if a student is gainful at the time of such a study (except so-called agreements) or if unemployed or retraining.The second exception is studying for the duration of service (beware, employment does not matter).

For example, a discount can also be applied to a twenty -two -year -old "child" if he studies a college - independently of his earning money.The condition, however.

Discount on the child for self -employed

Since recent modifications, self -employed persons can apply tax benefits to children as well.It is only necessary to observe the limit of minimum taxable expenditure, ie six times the minimum wage (see below).

Earlier (revenue for 2017) entrepreneurs could choose whether to use a common system (higher lump -sums, but without discounts) or new (lower limit but with discounts).Starting with 2018 revenue, only a new system is valid.

Tax bonus

While you can deduct the usual discounts (taxpayer, wife, student or disabled) only to the amount of the calculated tax liability, the "discount of the child" can also be used tax bonus.

Online tax return

Take advantage of our simple tax calculator and solve your tax return for three handles.

Otevřít daňovou kalkulačku >>

If, after deducting the discount on your tax liability, you get "in minus" (the entitlement to a tax advantage is higher than the originally calculated tax liability), the difference will become a so -called tax bonus.

Thanks to the bonus not only will you not pay any taxes, but you will get something from it.You can get 60,300 crowns in 2020 - as in the previous year - at least a hundred (if you get a bonus less than 100 crowns, you will not get anything).

However, only one who earns at least six times the minimum wage, ie CZK 91,200 per year (this is the income limit for 2020).The income limit for 2020 was CZK 87,600.The amount increased year -on -year in connection with the increase in minimum wage.Only income from employment and business is included in the limit, capital revenue and rent are no longer included (see below).

Limitation of a tax bonus

Starting with revenue for 2018 has been limited by a circle of income that counts into this limit.Only earnings from employment or business can be included, not the revenue of the lease or capital assets.The Ministry of Finance thus reduced their artificial increases - mainly through a fictitious lease, more people came to the bonus.