Student or pensioner. Yak danit

The tax liability for the year 2022 is reduced by a discount per taxpayer in the amount of 30,840 crowns, to which all taxpayers are entitled. Due to studying or the award of an old-age pension, the tax payer has no reduction in the discount.

“Students and pensioners often have taxable income only part of the year, but even in those cases the discount belongs to the taxpayer in its entirety and is not reduced,” emphasizes Gabriela Ivanco, tax advisor at Mazars.

Students are also entitled to a student discount of 4,020 kroner. Even if the student worked for only a few months during the year, if the condition of studying for the whole year is met, the tax benefits will be fully applied in the annual tax calculation or tax return.

The tax return for 2022 must also be submitted by taxpayers who worked for two employers at the same time in a certain month last year, and the income tax advance was deducted from both salary and income.

This condition is also met when working for two employers under a contract for performance of work with a gross monthly fee of 10,001 kroner or more.

“Given that some students and pensioners improve their financial situation by doing various part-time jobs, they are obliged to fill out a tax return, even if they only have income from employment, and in some months they did not work at all. “, adds Ivanco.

Running a business in retirement or while studying is considered self-employment for the purposes of paying social and health insurance.

This is advantageous because when calculating the annual insurance premium, the minimum basis for assessment does not have to be observed, as is the case with the performance of the basic activity of self-employment.

The mandatory insurance premium is always calculated from the actual base, i.e. half of the tax base.

“Social insurance for the year 2022 is not paid at all from the secondary independent activity, if the gross profit is up to the limit, which is the amount of CZK 93,387 for the business for the entire last year,” adds Gabriela. Ivanco from Mazar.

While there is a legal obligation to submit a tax return in the case of income from business, from rent or when working for two employers at the same time, in the case of a request for a refund of withholding tax from a work contract, this amount of tax paid can be recovered thanks to the voluntary submission of a tax return.

The withholding tax from the work contract was paid during 2022, if the gross monthly salary was 10,000 kroner or less, and no tax return was signed with the employer.

Students and pensioners are the ones who often earn extra by agreeing to perform jobs with gross earnings up to a certain limit.

“Up to the annual tax base of 205,600 kroner (in general) and for students up to 232,400 kroner for the year 2022, the annual income tax is zero, and any income tax paid during the year thus becomes overpaid tax, and the reason is the right to a discount for the tax taxpayers and for students plus a student discount”, explains Ivanco.