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Planning the household budget – taxes

Source: licencja: CC 0.

Link to the lesson

Before you start you should know
  • A household budget is a family income and expenditure plan.

  • Taxes are a source of government revenuerevenuerevenue, the government spends it to fund various public expenditures.

  • There are many kinds of taxes – Personal Income Tax (PIT) is paid by individuals who obtain income.

You will learn
  • You will understand why paying the taxes by the taxpayers is necessary for a state to function.

  • You will know, where to find all the information necessary to settle your taxes when you start to obtain income.

  • You will be able to fill in the e‑declaration, calculating taxes in real‑life situations.

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nagranie abstraktu

“In this world nothing can be said to be certain, except death and taxes” – these words of Benjamin Franklin  are often quoted to prove that taxes cannot be avoidedto avoidavoided. No one likes paying taxes, but we know that it is impossible for a state to function without taxes. The government revenue that comes from taxes is spent on schools, hospitals, roads, the police, the courts, the army, historical treasures preservationhistorical treasures preservationhistorical treasures preservation, protection of the environment, etc. We would all like to live in a rich country, where we would feel safe and could enjoy quality education, healthcare system, effective infrastructure. However, creating such a country requiresto requirerequires a lot of investment.

Government revenue comes primarilyprimarilyprimarily from taxes. A taxpayer, an individual, a company or an institution, is obliged by the lawobliged by the lawobliged by the law to account for his income and transfer part of it to the Internal Revenue Service (IRS, Urząd Skarbowy). Before you begin to fill in a tax return form, you need to find out, who has to file one, where, and when. You also have to know, which form to fill out. You will find all the information you need in the infographics below.

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Na zdjęciu widać stół, na którym rozrzucono litery do gry w scrabble. Układają się w słowa "income tax". Wokół nich umieszczone są następujące teksty: 1. Who has to file a tax return? Annual tax settlement is obligatory for every adult person who in a given tax year has obtained some income, for example from work, retirement pension or rent. 2. Where do we file a tax return? At the Internal Revenue Service (tax office, Urząd Skarbowy) in our place of residence. It is possible to file the PIT (Personal Income Tax) in person, mail it or submit it via the Internet. 3. When do we file a tax return? The PIT for a previous year has to be filed until the last day of April the next year. 4. How do we know what to put in our tax return? Until the end of February each year, employers and institutions paying pensions, allowances etc. are obliged to deliver to us PIT-11. On its basis, we fill in the form that is right for us. 5. Which form should we fill in? PIT-37 PIT-37 is the right form for those who obtained their income from: wages from the employment contract, project contract, mandate, management contracts, copyrights and other property rights, retirement and other pensions, pre-retirement benefits and allowances, social security benefits, scholarships. This is the most popular PIT form in Poland. 6. Which form should we fill in? PIT-36 For those, who: conducted business activities, run specific sectors of agricultural production, rented out land, buildings, apartments or other property, received their income from abroad. 7. What tax reliefs are there? PIT/D form – dedicated for those taxpayers who use tax deduction under the category of expenses on housing purposes, for example to pay off credit or interest rates. PIT/O form - dedicated for these taxpayers who use tax deduction or income reduction for example because of their expenses on the Internet connection, the donation they made, rehabilitation or because they are raising up children.
What is a PIT?
Source: domena publiczna.

Fortunately, dealing with the taxation authorities becomes easier and easier. Now you can do it via an application downloaded from the Ministry of Finance website (e‑Deklaracje). Watch a short movie, showing you step‑by‑step, how to fill in an e‑declaration and submit it online to the tax office.

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Film instruktażowy dotyczący rozliczania PIT-ów przez Internet. PIT możesz wypełnić papierowo, elektronicznie lub online poprzez wykorzystanie odpowiedniej aplikacji e-deklaracje znajdującej się na stronie internetowej ministerstwa finansów www. finanse.mf.gov.pl. Aplikację e-deklaracje instalujesz na swoim komputerze, a następnie uzupełniasz wszelkim danymi personalnymi niezbędnymi do złożenia PIT min. imię, nazwisko, adres zamieszkania, dane współmałżonka w przypadku wspólnych rozliczeń, NIP, PESEL. Następnie do PITu w odpowiednie pole wprowadzasz wszelkie uzyskane w danym roku dochody oraz odliczenia. Wybierasz również na jaki cel społeczny pragniesz przekazać 1% podatku. Wypełniony PIT zapisujesz oraz po zatwierdzeniu wszelkich zapisów przesyłasz online do Urzędu Skarbowego.

Remember, that in the annualannualannual PIT declaration a taxpayer may decide to assignassignassign 1% of his tax to a chosen public benefit institution.

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Exercise 1
When is the deadline to file the tax return form for the previous year? Możliwe odpowiedzi: 1. on the last day of April, 2. on the last day of February, 3. on the last day of the year, 4. on the last day of the month
Exercise 2
Ćwiczenie alternatywne: Znajdź w dostępnych źródłach przepisy podatkowe, które odnoszą się do następujących sytuacji podatników: 1.  Aurelia and Eustachy are married with two children. They are both working and have just received documents about their income and PIT advance payment (PIT 11).  2. Aurelia is single. Her income was 52 665 zł last year.  3.  Aurelia and Eustachy are married. They settle their taxes jointly.
Ćwiczenie alternatywne: Znajdź w dostępnych źródłach przepisy podatkowe, które odnoszą się do następujących sytuacji podatników: 1.  Aurelia and Eustachy are married with two children. They are both working and have just received documents about their income and PIT advance payment (PIT 11).  2. Aurelia is single. Her income was 52 665 zł last year.  3.  Aurelia and Eustachy are married. They settle their taxes jointly.

Split the class into three groups. Students in each group will receive different PIT declarations to fill in.

Group 1

Aurelia and Eustachy are married with two children. They are both working and have just received documents about their income and PIT advance payment (PIT 11). Download e‑Deklaracje from the Ministry of Finances website and fill it in. Calculate the PIT for the married couple (joint settlement) with two children.

Group 2

Aurelia is single. Her income was 52 665 zł last year. Calculate the PIT for one person based on the information about income and PIT advance payment, Aurelia received from her employer (PIT 11). Use e‑Deklaracje downloaded from the Ministry of Finances website.

Group 3

Aurelia and Eustachy are married. They settle their taxes jointly. Calculate, using e‑Deklaracje, how much taxes they have to pay.

Take into consideration any tax exemptions in effect last fiscal year. You will find all the information you need on the Ministry of Finances website.

Download Aurelia’s and Eustachy’s PIT 11

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Pobierz załącznik

PIT-11 Aurelia
Plik PDF o rozmiarze 865.02 KB w języku polskim
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Pobierz załącznik

PIT-11 Eustachy
Plik PDF o rozmiarze 865.08 KB w języku polskim
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Exercise 3
Listen to the abstract recording to review the material and new vocabulary. Then do the vocabulary exercise. Match the pairs: English and Polish words. to avoid Możliwe odpowiedzi: 1. przychody, 2. zobowiązany prawem, 3. unikać, 4. rozliczać się, 5. przypisać, przeznaczyć, 6. wymagać, 7. ochrona zabytków revenue Możliwe odpowiedzi: 1. przychody, 2. zobowiązany prawem, 3. unikać, 4. rozliczać się, 5. przypisać, przeznaczyć, 6. wymagać, 7. ochrona zabytków historical treasures preservation Możliwe odpowiedzi: 1. przychody, 2. zobowiązany prawem, 3. unikać, 4. rozliczać się, 5. przypisać, przeznaczyć, 6. wymagać, 7. ochrona zabytków to require Możliwe odpowiedzi: 1. przychody, 2. zobowiązany prawem, 3. unikać, 4. rozliczać się, 5. przypisać, przeznaczyć, 6. wymagać, 7. ochrona zabytków obliged by the law Możliwe odpowiedzi: 1. przychody, 2. zobowiązany prawem, 3. unikać, 4. rozliczać się, 5. przypisać, przeznaczyć, 6. wymagać, 7. ochrona zabytków to account for Możliwe odpowiedzi: 1. przychody, 2. zobowiązany prawem, 3. unikać, 4. rozliczać się, 5. przypisać, przeznaczyć, 6. wymagać, 7. ochrona zabytków assign Możliwe odpowiedzi: 1. przychody, 2. zobowiązany prawem, 3. unikać, 4. rozliczać się, 5. przypisać, przeznaczyć, 6. wymagać, 7. ochrona zabytków

Keywords

household budget, income, expenditure, tax, government revenue, Personal Income Tax (PIT), Internal Revenue Service (IRS), taxing authorities, taxpayer, declaration, public benefit institution, advance payment, joint settlement, tax exemption, fiscal year

Glossary

to avoid
to avoid
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Nagranie słówka: to avoid

unikać

revenue
revenue
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Nagranie słówka: revenue

przychody

historical treasures preservation
historical treasures preservation
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Nagranie słówka: historical treasures preservation

ochrona zabytków

to require
to require
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Nagranie słówka: to require

wymagać

primarily
primarily
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Nagranie słówka: primarily

przede wszystkim

obliged by the law
obliged by the law
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Nagranie słówka: obliged by the law

zobowiązany prawem

to account for
to account for
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Nagranie słówka: to account for

rozliczać się

annual
annual
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Nagranie słówka: annual

roczny

assign
assign
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Nagranie słówka: assign

przypisać, przeznaczyć