Internet discount in the annual tax return
Internet tax relief is a type of tax relief that is deducted from your income only in the annual tax return. However, its use has been significantly limited. Check when and on what terms it is possible to deduct the Internet discount.
Internet tax relief - when can it be deducted?
As already mentioned, internet tax relief is a specific type of relief and its deduction is available only in tax settlements in two consecutive years - provided that the taxpayer has not used this deduction before.
Therefore, in the settlement of the tax return for 2020, taxpayers who:
have never used this kind of relief before,
for the first time they used the tax relief when settling the annual tax return for 2019.
Internet relief in the annual tax return - KIS brochure.pdf Description: manual completion
People who want to take advantage of the internet tax relief must bear in mind that the amount that can be deducted is limited - the maximum amount by which the taxpayer may reduce their income is PLN 760 per person. It should be borne in mind that the amount of PLN 760 applies to one person, without exception. Even in the case of spouses who have joint property and settle jointly, it is not possible to combine the limit amount and use it only by one of the spouses.
Who can take advantage of the internet discount?
The internet tax relief is available to taxpayers who settle their income on the following forms:
PIT-28 - income tax settlement on the basis of a lump sum on recorded revenues;
PIT-36 - income tax settlement according to the tax scale. However, it should be borne in mind that the settlement of the tax relief is possible only if internet expenses were not previously included in company costs;
PIT-37 - income tax settlement by taxpayers who do not conduct business activity.
Joint settlement with the spouse and internet tax relief
If there is a community of property between the spouses, and one of them has accounted for the Internet tax relief, then the other has the right to "deduct the tax of his own". In such a situation, however, it should be borne in mind that the invoice must contain the data of the spouse who wants to apply the discount.
Documenting the cost of using the Internet
A taxpayer who wants to take advantage of the internet tax relief should bear in mind that all expenses related to the use of the internet are deductible. Therefore, not only taxpayers who use the Internet at their place of residence are entitled to the relief. Well, the Internet discount is also available to those who use the Internet in an Internet cafe, have it in their mobile phone, or have a portable modem connected to a laptop.
However, it should be remembered that the use of the Internet tax relief requires proper documentation of the expenditure incurred on this account. For this purpose, the tax authorities do not require the document to be an invoice. However, it is the safest evidence of using internet services.
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It is important that this document has:
data identifying the seller and buyer,
type of service purchased,
statement of the actually incurred expense, and not just ordering a service.
It should be borne in mind that the discount applies only to the actually paid internet fee. Therefore, in order to deduct the Internet tax allowance, you must have documents confirming the payment of expenses. In the case of payment by bank transfer, the confirmation of the transfer will be appropriate, where the content should clearly indicate what the transaction concerns, e.g. a fee for network use for December 2020, or in the case of cash payments - confirmation of payment or an annotation on the invoice "paid in cash".
Where can I show my internet tax relief in my annual tax return?
As previously mentioned, the deduction of the Internet tax relief is possible when submitting an annual tax return on the following forms: PIT-28, PIT-36, PIT-37. It is possible to attach PIT / O to each of these forms. It is an attachment that is used to show tax credits, including internet tax credits.
In order to deduct an internet tax credit, in the PIT / O appendix, part B - Deductions from income, field 25 or 26 (depending on whether the tax credit is settled by the taxpayer or by the taxpayer's spouse) includes the deductible amount.
In the draft of the PIT / O appendix for 2020, the relief in part B will be completed, in field 29 (for the taxpayer) or 30 (for the spouse). The value is entered within the limit of PLN 700