Settle your PIT-37 conveniently for 2020!

Each taxpayer who has achieved taxable income is required to submit an annual tax return. Check who is entitled to settle accounts on the PIT-37 form!

PIT-37 - declaration submission deadline

Settlements using the PIT-37 form can be made by taxpayers who in the accounting year obtained income from an employment contract, mandate, for specific work or pensions. Declarations should be submitted to the Tax Office competent for the address of residence by April 30 for the previous year. If this day falls on a non-working day, the period automatically moves to the first working day following that date. The declaration for 2020 should be submitted by April 30, 2021.

It should be remembered that in some cases the taxpayer's annual tax return may be completed by another institution, which consequently relieves him from the need to spend time on making appropriate calculations. One of such groups are retirees and disability pensioners whose only income is various types of retirement or disability benefits paid by the Social Insurance Institution. This means that if you receive the PIT-40A form completed by the Social Insurance Institution, you no longer have to prepare the annual tax return individually.

Methods for submitting PIT-37 returns

The form can be submitted to the office in three ways. The most common method is to submit the declaration directly to the relevant tax office in a paper form. It is also possible to send the declaration by registered mail. The most common method, which is constantly gaining in popularity, is the electronic sending of declarations, possible thanks to the e-Deklaracje application, available on the website of the Ministry of Finance.

In the system, it is also possible to generate a UPO document that confirms the submission of a tax return by the taxpayer. This confirmation is treated on a par with the confirmation issued by the office when personally submitting the declaration and the confirmation of posting by letter.

Details on online PIT submission and preparation are described in the article: PIT over the Internet - how to settle and prepare for submission?

Deadline for tax return from PIT-37

It should be borne in mind that both methods of submitting PIT differ in terms of the tax refund date. In the case of paper declarations, we can wait up to 3 months for the tax refund. This period is counted from the date of submitting the declaration (Art. 77 § 1 of the Tax Ordinance).

According to the announcement of the Ministry of Finance, the waiting time for a tax refund will be reduced to 45 days in the case of sending the annual tax return electronically. If PIT-37 is submitted on time:

• 01/01 - 15/02 - the tax return should be made by April 1, 2021.
  
• 16.02 - 30.04 - tax refund will be made within 45 days from the date of dispatch of the declaration.

Settlement by the employer and PIT 37

Until 2017 (i.e. for settlements for 2016), it was possible for the employer to settle PIT. It consisted in the fact that an employee who earned income from one employer throughout the year, did not deduct allowances and donations and did not use the preferential settlement of his income, submitted a PIT-12 form to his employer by 10 January.

On this basis, the employer filled out a PIT-40 form for him and submits it to the competent tax office by the end of February after the end of the tax year. This replaced the obligation to submit PIT-37.

Currently, the above solution no longer applies, as it has been replaced by the Your e-PIT service.

Filing a PIT-37 with your e-PIT

In 2019, the Twój e-PIT service was introduced, which means that the National Tax Administration (KAS) itself fills out the annual tax return for the taxpayer in an electronic version. Then, PIT makes available to him for inspection, with the possibility of modification. The taxpayer can check the correctness of all data as well as settle allowances on their own (e.g. pro-family tax) and indicate a public benefit organization for which they will transfer 1% of the tax.

The taxpayer may accept or reject his PIT-37 and settle accounts on his own. Time for modifications, accepting the rejection of the tax return is until April 30th. If the taxpayer fails to do anything regarding the annual tax return completed by KAS, it will be considered accepted.

Tax credits and PIT-37

The most frequently chosen relief is the prophecy, known as the relief for children. It is entitled to every minor child for whom, during the tax year, the taxpayer:

• exercised parental authority,

• acted as a legal guardian if the child lived with him,

• cared for by performing the function of a foster family on the basis of a court decision or an agreement concluded with the starost.

The discount is calculated for each month, which means that for children born during 2019, the discount is calculated from the moment of birth. Example - for a child born on August 31, 2019, it is due for 5 months (from August to December).

In the case of 1 minor child, the monthly discount is PLN 92.67, provided that:

a) the income of the taxpayer who was married throughout the tax year and his spouse did not exceed PLN 112,000 in the tax year,

b) the income of the unmarried taxpayer, also for part of the tax year, did not exceed PLN 56,000 in the tax year; an exception to this rule is a single-parent taxpayer for whom the income limit is PLN 112,000.

Therefore, with one child and exceeding the income limit, the pro-family relief will not apply at all.

In the case of 2 minor children, the monthly value of the discount is PLN 92.67 for each of them. The provisions of the PIT Act in this respect do not provide for any additional restrictions as to the amount of income.

In the case of 3 or more minor children, the monthly amount of the discount is:

a) PLN 92.67 for the first and second child, respectively,

b) PLN 166.67 for the third child,

c) PLN 225 for the fourth and each subsequent child.

The income limit of PLN 56,000 or PLN 112,000 does not apply when deductions are made for more than one child.