Last year, approximately 57,000 mothers of four or more children did not pay a single penny of personal income tax. The Hungarian tax exemption that helps large families is also unique in the European Union, which in 2020 left a total of HUF 22 billion for those involved, András Tállai told MTI.
The parliamentary state secretary of the Ministry of Finance emphasized that since 2011, families can count on increasing amounts of government support and more and more types. While in 2010, the last year of the Gyurcsány-Bajnai government, parents only received HUF 12 billion in benefits, this year the amount left to families reaches HUF 380 billion.
Last year, a new element was added to the range of family discounts, as of January 1, 2020, women who have four or more children do not have to pay a single penny of personal income tax (PIT) on their income from employment, the State Secretary reminded. Detailed rules are also favorable. The exemption does not apply only to biological children, and adult children must also be taken into account.
It is also important that the SJA exemption does not exclude the use of the family discount. The mother can claim the child allowance for minors either from her own employee contribution or jointly with the father, he explained.
Data from the tax office revealed that more and more mothers with four or more children benefited from the tax exemption month by month. In the first month, that is, in January 2020, 38,000 mothers claimed the discount from their tax advance, and in February, 42,000. Many people - around 12,000 - only indicated in their 2020 tax return that they were entitled to the discount, and subsequently used the rule offering exemption. So last year, 57,000 mothers with four or more children were exempted from the social security payment obligation, the state secretary concluded.
András Tállai emphasized that the government's family support policy could not be overridden by the coronavirus crisis either.
As he said: the previously introduced measures will continue to live, moreover, thanks to the sja discount for children and the lifelong tax exemption for mothers with large families, families may have an unprecedented amount left in 2022, which can be increased even further by the family tax refund.
If the growth of the economy exceeds 5.5 percent, then families with children - up to the average income - will get their tax paid this year back at the beginning of next year. And from January 1, 2022, a new exemption will come into effect: those younger than 25 will be entitled to a tax exemption up to the average wage, which may affect roughly 300,000 young people.
Source: MTI
