Tax Allowance for a Dependent Child in Summer

Summer holidays are relentlessly approaching, so it might be time to remind ourselves how tax allowance for a dependent child works during the summer months.

To begin with, it is good to mention that this is a tax benefit designed for employees. In order for the tax allowance claim to be applied, the following conditions must be met:

✔️ The child has the status of a dependent child of the taxpayer

✔️ The child lives with the taxpayer in a jointly managed household

✔️ The tax allowance is not claimed by another taxpayer

✔️ If the taxpayer supports more than one child, the amount of the tax allowance varies according to the order of the claimed child (the order is determined by the taxpayer)

Although these conditions may seem simple, this is not always the case. In practice, it may be necessary to meet other specific conditions.

I. When does the entitlement to tax allowance arise even during holidays?

It is important to note that until the child reaches adulthood, it does not matter whether the child studies or not – therefore, it is not necessary to provide the payroll accountant with a confirmation of study.

II. Holiday periods and studies

If the holiday period follows between individual academic years of study, it is considered systematic preparation for a future profession and the entitlement to the tax allowance remains preserved – there is no need to suspend it.

The rules for what is considered systematic preparation for a future profession (studies at secondary schools and universities, including holiday periods) are regulated in detail by Sections 12 to 14 of Act No. 117/1995 Coll., on State Social Support.

In case of any questions, please do not hesitate to contact us.

Your TaxVision Team