Micro-account with joint PIT settlement - how to choose the right one?
After the end of the tax year, each person receiving income, e.g. from an employment contract, civil law contract or business activity, is required to prepare an annual tax return. For tax optimization purposes, some taxpayers may choose a joint settlement with their spouse, thanks to which the income obtained will be summed up and shown on one declaration of the annual tax return. From January 1, 2020, each taxpayer, regardless of marital status, has its own individual micro-account, to which the taxpayer pays tax liabilities.Let's check which micro-account should be chosen for joint PIT settlement.
When is joint PIT settlement possible?
In a situation where neither of the spouses conducts business taxed with a flat or lump sum tax on recorded income, it is possible to take advantage of tax optimization in the form of joint PIT settlement. The exception is when one of the spouses earns income from private rental. These revenues do not exclude the possibility of joint settlement.
In addition, three additional conditions listed in Art. 6 sec. 2 of the PIT Act, according to which spouses may submit one annual tax return in order to settle the income obtained in a given tax year, if:
- are subject to tax liability,
- there was joint property between them throughout the year,
- they were married all year round.
Joint PIT settlement is also possible in a situation where the marriage was concluded in the previous tax year, and during the current tax year to be settled, one of the spouses died. Example 1.
Mr. Aleksander conducts activities subject to general taxation. In 2018 he got married. His wife is employed under an employment contract at ABC and after 2020 she received PIT-11 from her employer. Can Mr. Aleksander settle accounts together with his wife on one annual tax return?
Yes, due to the fact that Mr. Aleksander's income is taxed on general principles (tax scale) and he was married with his wife for the whole year, he can submit one annual tax return (PIT-36), which will show both income from the conducted activity, and the wife's income from the employment contract.
Mr. Łukasz operates on general terms and has been married for 5 years. His wife obtains private rental income taxed with a flat rate on recorded income and works under an employment contract at ABC. Can Mr. Łukasz settle accounts for 2020 together with his spouse on one annual tax return?
Yes, Mr. Łukasz can submit one annual tax return (PIT-36), on which he will settle the income from his business activity and the wife's income from the employment contract on the basis of PIT-11, which she should receive from the employer. In addition, Mr. Łukasz's wife must submit a separate annual tax return (PIT-28), on which she will settle the income from private rental.
What is a tax micro-account?
From January 1, 2019, each taxpayer has become the holder of a tax micro-account, to which liabilities to the tax office are paid. The tax micro-account number can be generated through the generator provided by the Ministry of Finance: https://www.podatki.gov.pl/generator-mikrorachunku-podatkowego. A tax micro-account is not a separate bank account that the taxpayer has to set up in person at the bank. It is also not an account on which additional fees or commissions are charged. In order to generate a micro-account number, you can use one of the two identifiers:
- PESEL - for natural persons who:
- do not run a business or
- are not registered VAT payers
- NIP - for natural persons and entities that:
- they run a business or
- are registered as VAT payers or
- are payers of taxes and / or social security contributions.
The main advantage of introducing a tax micro-account is the fact that its number is constant regardless of the change of place of residence, and thus the change of the competent tax office. In addition, both VAT and PIT are paid to the same tax account number, thanks to which the possibility of a mistake on the part of the taxpayer will be limited.
Which micro-account is appropriate for joint PIT settlement?
In a situation where after generating the annual tax return a tax liability has arisen, the taxpayer is obliged to pay it to the office. For this purpose, he makes payments to an individual tax micro-account. In the case of joint settlement of the spouses on one annual tax return, they are also obliged to settle the tax liability for the micro-account.
According to the information on the website of the Ministry of Finance:
“If you settle accounts jointly with your spouse, you can pay the tax to your micro-account or to your spouse's micro-account. However, we recommend that the tax resulting from the joint declaration should be paid to the micro-account of the person who will be indicated first in this declaration. " If, after generating the annual tax return, it turns out that a tax overpayment has arisen as a result of joint settlement with the spouse, the office will refund it within:
- 45 days from the date of submitting the tax return - in the case of submitting the tax return in electronic form;
- 3 months from the date of submitting the tax return - in the case of other forms, e.g. by submitting a paper-based tax return to the office.
Pursuant to Art. 77b § 1 of the Tax Ordinance, the overpayment is refunded:
- to the indicated bank account or account in SKOK of the taxpayer, in a situation where he is obliged to have such an account;
- in cash (at the cash desk of the office or by postal order), if the taxpayer is not obliged to have a bank account, unless the taxpayer requests the return of the overpayment to the bank account.
The bank account appropriate for the refund of tax overpayment should be reported via the CEIDG-1 form. The overpayment is not returned to the taxpayer's tax micro-account.
Joint settlement with the spouse in the wFirma.pl system
The annual declaration on business activity is generated automatically in the wFirma.pl system, based on data on social security contributions, income, costs and possible loss from previous years, which were introduced during the tax year. Additionally, entrepreneurs who tax their income according to general rules (tax scale) may use joint settlement with their spouse. To do this, go to the tab: START »TAXES» ANNUAL DECLARATIONS »ADD DECLARATION» ANNUAL INCOME TAX DECLARATIONS ON GENERAL PRINCIPLES (PIT-36). Then, select the year for which the tax return is submitted and as the Purpose of filing, select the Submission of the declaration option. The next windows will display the automatically completed data on social security contributions and income tax advances for a given year for the conducted activity and a window where you can select the method of taxation.
In the case of joint PIT settlement, one of the two options should be selected:
- jointly with the spouse, in accordance with the application referred to in art. 6 sec. 1 of the act;
- jointly with the spouse, in accordance with the application referred to in art. 6a sec. 1 of the Act - in a situation where the settlement is made with the deceased spouse
As a result, additional fields will appear in which you should enter your spouse's NIP or PESEL number.
In part B.2. you must complete the spouse's details, such as name, surname and date of birth. If the residence address is the same as the entrepreneur's, there is no need to fill in the remaining fields manually, because it is enough to check the box Spouse's address is the same as the taxpayer's address.
Then, in section E.2, you should enter the data on the spouse's income, e.g. from an employment contract, contract for specific work or received benefits. In part F, in the Spouse's contribution field, enter the amount of the spouse's social contributions paid in a given year, e.g. on the basis of the PIT-11 received from the employer. Thanks to this, the value will be transferred to pos. 193. Similarly, in Part J, enter the sum of health insurance premiums in the Spouse's premium field. Thanks to this, the value will be transferred to pos. 263.
A detailed description of the scheme for completing the annual tax return in the case of joint settlement of spouses can be found in the article: Settlement with a spouse on PIT-36 in the wFirma.pl system.