"The taxes we pay are all of our shared money. If, as parents of children, we get our full annual personal income tax back this year, we will be missing out on money from places where it was badly needed," they said.Continue reading
A family with two children wishing to claim the maximum tax rebate of 809,000 forints per person (2,300 euros each) would need to earn a total of 14 million forints per year or an average gross salary of 7 million forints per person per year. According to the financial portal azenpenzem.hu, those with higher salaries who were not able to claim all family allowances in the last tax year may be best off.
This article was originally published on our sister-site, Ungarn Heute.
According to the government, parents who are eligible for the family tax benefit can get back up to 809,000 forints each of the taxes paid. If both parents are eligible, together they can get back a maximum of 1.6 million forints (about 4,600 euros). However, each parent will only receive the amount of tax paid that was in excess of the family tax credit in 2021. Those who believe that the maximum amount of 809,000 forints is available to all may be disappointed, warns Napi.hu.
If a married couple with two children earns at least HUF 7 million gross per year (HUF 583,000 gross per month/ EUR 1,650) or more, and their gross wages amount to at least HUF 14 million per year (EUR 39,600), then in addition to the family tax credit they claim jointly, they have still paid enough tax to receive the maximum refund of HUF 809,000 each, or a total of HUF 1.6 million.
It is possible that a father of three earning well above the average wage (over 482,000 forints/ 1,360 euros) with a gross salary of 660,000 forints, or a mother with children may end up receiving no forints from the measure because the family tax credit has already refunded all social security contributions due, so there are no more taxes to refund.
Anyone raising three children alone will not get any money back if their gross monthly wage is less than 660,000 forints. But the same applies if the gross monthly wage of both parents in a family with three children is the same. They also receive nothing.
In fact, it is those who earn well above the average Hungarian wage who can make the most of this opportunity because of the family tax credit already claimed.
However, if two parents are entitled to the family tax credit, there is the possibility of receiving tax credits if they are optimally distributed among themselves. Of course, this can only be claimed in the annual tax return. So it will be worthwhile for all those who can or have to share the family tax credits among themselves.
Featured image via Pixabay
