500+ benefit and PIT 2021 - everything you need to know


The 500+ benefit is a support for Polish families in partial coverage of expenses related to raising a child, including caring for it and satisfying its most important life needs. Only parents raising a minor child are entitled to it. Parents bringing up more than one child are entitled to the 500+ benefit regardless of the amount of income. Is the 500+ benefit taxable income and should it be included in the annual tax return?

500+ benefit and PIT 2021

The income that the family obtains by receiving the 500+ benefit is exempt from PIT tax, so there is no obligation to include it in the annual tax return (PIT-37 or PIT-36) for 2020. In addition, income from the 500+ benefit:

  • will not result in a transition to the second step of the tax scale;
  • does not affect the value of the tax-free amount;
  • it does not deprive parents of the right to joint accounts with the child.

Child tax reimbursement

Pro-family relief is one of the most popular methods of supporting citizens by the state. The amount of the deduction of the allowance is granted to each child after meeting the statutory requirements. Applying for the reimbursement of pro-family tax relief is not the taxpayer's obligation, but its privilege.

The discount is available to:

  • for each child under the age of 18;
  • for each disabled child who receives a care allowance or a social pension;
  • for each child up to 25 years of age who is studying or studying - if in the previous year they did not receive income higher than PLN 3,089 (except for survivors' pension).

In the tax return for 2020 submitted on PIT-37 or PIT-36 declarations, it is possible to apply for a refund of the unused amount of the child relief. This is to help families who are unable to use the full annual tax return because of low earnings or having a large number of children.

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