If a student or woman on maternity leave works under a contract or is employed by 1 or more employers in a row and has signed a tax return, there may be an annual tax return issued by the latter. This is also true for employers where these people worked only part of 1 year. However, the requirement is to be able to sign an application for an annual account by 15. If this is not done by May 2, the relevant person must file a tax return for himself.

If a student or woman on maternity leave works on 1 or more labor contracts and fails to sign a taxpayer declaration, their gross income will be taxed by so-called withholding taxes and no discounts will be applicable. Tax returns are not required by law. But they can submit a confession, and this step is especially beneficial for students. Why?

Why is it beneficial to file a tax return?

Students usually work only for a portion of the calendar year, and with annual tax settlement and tax returns, they can apply a discount of 24,840 CZK to taxpayers and a discount of 4,020 CZK to students. They can collect all or part of the tax. The student discount, as the law says, applies to those who were constantly preparing for the future profession during this time, but this is limited to 26 years. The exception is a full-time study form in the doctoral program, which pushes the age limit to 28 years.

Students are also required to include incentive contributions in their tax returns, which are related to preparation for future occupations and are usually part of a contractual relationship with their future employer. Incentive contributions are taxed in the same way as income from employment. Motivational contributions mean, for example, contributions to scholarships, contributions to food and accommodation, school fares, work, personal and protective equipment and assistance purchases. Note, only contributions from future employers are subject to taxation.Of course, this category does not include the benefits and accommodation scholarships provided by the school – they are not included in the tax return and are not taxed.