The tax credit on personal income tax for a dependant spouse

The taxpayer of personal income tax can apply for a tax credit for a dependant spouse in the maximum amount of 24 840 CZK for a tax period, if the spouses share one household and the income of the spouse is lower than 68 000 CZK in a tax period. If the spouse is a holder of the ZTP/P card, the tax credit doubles to 49 680 CZK.

The tax credit can be applied for only in the months, at the beginning of which the requirement for the lower income is met. The taxpayer proves his/her entitlement to the tax credit by presenting a declaration of honour from the spouse stating that his/her annual income does not exceed 68 000 CZK.

The following are not included in the annual income of 68 000 CZK: social security benefits, foster-care benefits except for the renumeration for the foster parent, the disability benefits, material need benefits, care allowances and allowances for social services, state contribution to pension plans, state contribution to supplementary pension, state contribution to building savings, scholarships provided to full-time students and the income arising from caring for a closely related person who is entitled to the care allowances according to the Law on Social Services. Maternity allowance is included in the income limit, on the other hand parental allowances are not.