1.9 million people are affected by the government's announcement regarding the SJA refund. By the way, all of this may take place due to the outstanding performance of the Hungarian economy. Now we show you the most important questions and answers.
Expectant mothers who reach the third month of their pregnancy by the end of 2021 will also get their personal income tax back, said Katalin Novák, minister without portfolio responsible for families, in a video uploaded to the government's Facebook page . Novák announced that HUF 600 billion will be returned to Hungarian families due to personal income tax refunds. But what are the exact rules for the sja repayment? Now we present the most important questions and answers based on the recently published decree.
Are both parents eligible for reimbursement?
The refund goes to anyone who is entitled to a family discount on any day of 2021, regardless of whether they claim it or not.
If both parents meet this condition and
- has taxable income or other income from independent or non-independent activities,
- or gross income,
- or a declared taxpayer,
both can use the refund.
In the case of cohabitants, do both parents receive a refund?
Every individual raising a child who is entitled to a family discount on any day of 2021 is entitled to a tax refund, even if he or she does not use the family discount.
If the spouses raise their common child together, as parents, both are entitled to the family discount and tax refund.
If the partners are raising only one of their children together, then the partner living with the child's parent is only entitled to the family discount and tax refund if he is also entitled to the family allowance.
As a pregnant woman, am I already entitled to a refund, or only when my child is born?
The refund goes to the individual who is entitled to a family discount on any day of 2021. A pregnant woman and her spouse living in the same household as her are entitled to the family discount from the 91st day of conception.
Therefore, if the pregnancy reaches the 91st day from conception, you are entitled to a refund even if you do not use the family discount or if your spouse living in the same household uses it.
If I have more children, will I get more back?
The amount of the tax refund is not affected by the number of children.
The amount of the refund depends on the amount of personal income tax, ekho, on the income of the individual entitled to the family allowance in the consolidated tax base earned in 2021, and on the amount of itemized tax charged to the low-taxing business for the low-taxer, and not on the number of children.
How old is the refund for the child?
Eligibility does not depend on the child's age, but on whether the child is entitled to a family discount.
If the parent was entitled to a family discount for the child for even just one day in 2021, he is also entitled to a refund.
How does the tax exemption for mothers raising four or more children affect the family's reimbursement?
Mothers raising four or more children can use the refund for the income belonging to the consolidated tax base, for which the discount for mothers raising four or more children cannot be applied.
This could be, for example, the tax on income from renting out real estate.
How exactly is the refund cap calculated?
The amount of the refund is a maximum of HUF 809,000, which is the product of twelve times the average annual gross salary calculated on the basis of December 2020 KSH data and the 15 percent tax rate, rounded to the nearest thousand HUF.
The gross average salary is HUF 449,400, which means that the amount of the discount is: HUF 449,400x12x15%=HUF 808,920, rounded up to HUF 809,000.
If the tax charged to the individual's consolidated tax base is less than this amount, the amount of the refund is the amount of the tax.
In the case of an individual with an income tax, the portion of the income tax deducted from him for 2021 (9.5 percent) is reimbursed, which cannot exceed HUF 809,000.
For small taxpayers, the amount of the refund is a quarter of the itemized tax charged to the small taxpayer for 2021, but a maximum of HUF 809,000.
If the individual has income taxable according to sja, kata and ekho, then the sums that can be reclaimed from the different types of tax cannot exceed HUF 809,000!
more details about refunds here.
