800+ child benefit in your Polish tax return: complete guide

The 800+ benefit is one of the most important forms of state support for families in Poland, and it raises many questions about tax settlement. Parents who receive it often wonder whether they must include the amounts received in their annual tax return and whether income tax is payable on the benefit. These doubts are fully justified, because as a rule all income is taxable unless the law provides otherwise. We prepare annual returns for business owners who use our accounting services.

The child-raising benefit (świadczenie wychowawcze), commonly called 800+, was introduced in Poland in 2016 under the Act on state aid in raising children (initially as 500+). Since 1 January 2024 it has amounted to PLN 800 per month, and millions of Polish families receive it for raising children up to the age of 18. As the programme became widespread, many questions arose about the tax consequences of receiving this benefit.

Tax issues relating to social benefits are particularly important for taxpayers who must fill in their tax returns correctly. Incorrect settlement can lead to problems with the tax authorities, so it is worth knowing the rules that govern this area well. In the case of the 800+ benefit, the situation is clear and favourable for recipients, but it requires a detailed discussion of the legal basis.

Legal basis of the 800+ benefit

The 800+ child-raising benefit was established by the Act of 11 February 2016 on state aid in raising children. Under this Act, the purpose of the child-raising benefit is to partly cover the costs of raising a child, including caring for the child and meeting the child's living needs. The child's own income is a different matter — when it is added to the parents' is explained in our article on a minor child's income in the parents' tax return.

The 800+ programme is universal: it is available to all families regardless of their income. This is a significant change compared with earlier social programmes, which depended on income criteria. Thanks to this solution, the award procedure has been simplified and there is no longer any need to document income. However, an application must be filed for each benefit period, which runs from 1 June to 31 May of the following year (Article 18 section 1 of the Act).

The Act sets out precisely who is entitled to receive the benefit. They include:

1. The mother or father, if the child lives with them and is maintained by them
2. The child's de facto guardian, if the child lives with them and is maintained by them
3. The child's legal guardian appointed by a court
4. The director of a social welfare home, for children staying in that facility
5. A foster family or a person running a family children's home
6. The director of a care and education facility, a regional care and therapy facility or an intervention pre-adoption centre

Special rules apply where the parents are divorced, separated or living apart and share alternating custody (Article 5 section 2a of the Act). In such cases, each parent is awarded half of the child-raising benefit due for a given month, provided that custody is exercised for comparable and recurring periods in accordance with a court ruling.

The 800+ benefit as taxable revenue

To understand the tax consequences of receiving the 800+ benefit, you first need to consider whether it is revenue within the meaning of the rules on personal income tax. Under Article 11 section 1 of the PIT Act (personal income tax), revenue is, as a rule, all amounts received by or made available to the taxpayer.

The 800+ benefit undoubtedly meets the definition of taxable revenue, because it is an amount the taxpayer receives from the state. This money increases the recipient's assets and can be freely used to cover the costs of raising a child or other family needs.

The key question is the correct source of revenue for the 800+ benefit. In the list of sources of revenue in Article 10 section 1 of the PIT Act, point 9 lists other sources. A detailed list of revenue from other sources is found in Article 20 section 1 of the PIT Act, which mentions, among other things:

• Amounts paid after the death of a member of an open pension fund
• Amounts obtained as a refund from an individual retirement security account (IKZE)
• Cash benefits from social insurance
• Maintenance payments (alimenty)
• Scholarships granted by various institutions
• Benefits received under a harvest assistance agreement
• Grants and subsidies other than those listed in Article 14 of the PIT Act
• Surcharges and prizes received for various reasons
• Other free benefits not falling within revenue defined in other articles

Although the child-raising benefit is not expressly listed in Article 20 section 1 of the PIT Act, given the open nature of that list it must be regarded as falling within the category of other sources of revenue. This classification matters for the further analysis of how the benefit is taxed.

Exemption of the 800+ benefit from income tax

The key point for taxpayers receiving the 800+ benefit is that this revenue is fully exempt from income tax. The legal basis for the exemption is Article 21 section 1 point 8 of the PIT Act, which clearly sets out categories of revenue free from tax.

Under this provision, the following categories of benefits are free from income tax:

The tax exemption for the 800+ benefit is absolute and does not depend on meeting any additional conditions. The taxpayer's other income, family situation or the way the money is spent make no difference. Every recipient of the 800+ programme can be sure that the benefit received will not increase their tax liabilities.

Remember that this exemption applies only to the child-raising benefit granted under the Act on state aid in raising children. Other forms of financial support for families may be subject to different tax rules, so always check the specific legal basis for each type of benefit.

A family with two children receives PLN 1,600 per month in 800+ benefit. Over a year this adds up to PLN 19,200. Thanks to the tax exemption, the whole sum stays with the family, without any tax or contributions having to be paid. Even if the parents have high income from other sources, the 800+ benefit does not affect their tax liabilities.

Consequences for the annual tax return

One of the most important questions for recipients of the 800+ programme is whether the benefit received must be shown in the annual tax return. The answer follows from the rules governing taxpayers' obligations to file tax returns.

Under Article 45 section 1 of the PIT Act, taxpayers must file with the tax office (urząd skarbowy) a return showing the income earned or loss incurred in the tax year. The filing period runs from 15 February to 30 April of the year following the tax year. Returns filed before the start of this period are deemed filed on 15 February.

The key question is which income must be shown in the annual return. Under Article 45 section 6 of the PIT Act, the income tax resulting from the return is the tax due on the taxpayer's income earned in the tax year. This means the return must show income subject to taxation. For most employees this is the form we break down in our guide to the PIT-37 return step by step.

This provision clearly excludes from taxation income exempt under Article 21 of the PIT Act, which includes the 800+ child-raising benefit. As a result, exempt revenue is not shown in the annual tax return. The same rule applies where a parent reports business and employment income in the annual PIT return.

The practical consequences of this solution are very favourable for taxpayers:

• There is no need to collect documents confirming receipt of the 800+ benefit for tax purposes
• The benefit does not affect the tax base for other income
• One possible cause of errors in the tax return disappears
• The annual settlement is simpler for millions of Polish families

Differences between family benefits

It is worth noting the differences between the 800+ benefit and other forms of state support for families, because not all social benefits are treated identically for tax purposes. Knowing these differences matters for the correct tax settlement of all benefits received.

Family benefits granted under the Act on family benefits include a wide range of support:

• Family allowance with supplements
• Care benefits
• One-off childbirth grant
• Care allowance
• Special care allowance
• Carer's benefit
• Carer's allowance (granted under a separate Act on determining and paying carers' allowances)

All these benefits, like 800+, are exempt from tax under Article 21 section 1 point 8 of the PIT Act. They differ, however, in their eligibility criteria: most of them depend on the family's income or on special circumstances, such as a child's disability.

There are also significant differences in the award procedures:

1. 800+ benefit - the application is filed electronically with ZUS (Social Insurance Institution) for each period from 1 June to 31 May, without income documents; ZUS accepts applications for the next period from 1 February (Article 21 section 3 of the Act)
2. Family allowance - requires an application every year together with income documents
3. Care benefits - often require a disability certificate or a certificate of the degree of disability
4. One-off grants - paid once after certain conditions are met
5. Carer's benefits - depend on providing care for a person who needs constant care

Practical aspects of receiving the 800+ benefit

From a practical point of view, once the benefit has been granted for a given period, it is paid without further formalities, and a new application is filed for the next period. Recipients do not have to take any additional steps to settle this benefit for tax purposes, which considerably simplifies their administrative obligations.

Money from the 800+ programme is transferred directly to the bank account indicated by the applicant. Payments are made monthly (Article 21 section 1 of the Act), on dates set by ZUS. Changes in the family situation, such as the birth of another child, require an application for that child, and ZUS takes into account the child turning 18 by paying a proportional amount for the last month.

A family in which the first child was born in January and the second in June will receive PLN 800 per month for the first child (for January proportionally from the date of birth), and from July PLN 1,600 per month – for June a proportional amount is due for the second child. Payment from the month of birth requires the application to be filed within 3 months of the child's birth (Article 18 section 2a of the Act). In none of these cases will the family have any tax obligations relating to the amounts received.

Keep a few practical points in mind:

• Change of bank details - report a change of bank account number without delay
• Change of address - may require updating your details in the system
• Moving abroad - a long stay outside Poland may affect entitlement to the benefit
• Change in family situation - divorce, separation or a change in childcare arrangements must be reported to ZUS within 7 days (Article 20 section 1 of the Act)
• Child reaching adulthood - the benefit is due until the day the child turns 18, and a proportional amount is paid for the last month

Frequently asked questions