Polish married couples can claim tax deductions for home insulation, but eligibility depends on property ownership and invoice details.
Who Can Claim the Thermal Modernization Allowance?
Home insulation tax deductions are available to owners and co-owners of single-family homes, including married couples. Both spouses can claim expenses for thermal modernization up to 53,000 zł each, with separate limits. However, unused portions of one spouse’s limit cannot be transferred to the other spouse.
VAT Invoice Requirement
Expenses must be documented with invoices from active VAT taxpayers, including VAT amounts. If the invoice is issued by a VAT-exempt taxpayer, the tax deduction is not eligible.
Eligible Insulation Expenses
Only expenses for home insulation specified in a December 21, 2018 regulation by the Minister of Investment and Development can be deducted. This includes replacing windows or insulating roofs, but not replacing the roof itself.
Invoice Ownership Requirements
An invoice from a VAT taxpayer is required to qualify for the deduction. For married couples with joint property ownership, it doesn’t matter whose name is on the invoice, as long as it documents thermal insulation work on their shared home. Both can claim expenses up to their individual limits.
Home Ownership Verification
Couples should verify that the home is indeed owned by both spouses. For example, if a wife received the home as a gift before marriage and didn’t include it in joint property afterward, the husband is not a co-owner and cannot claim the deduction even if the invoice is in his name.
Personal Property Considerations
Additionally, for a wife to claim expenses for home insulation on property in her personal estate, the invoice must be in her name. If the invoice is in the husband’s name, she cannot claim the tax deduction in her personal income tax return.