KUP limits: annual rules and practice

KUP limits are one of the most common sources of mistakes. Many people remember monthly costs but forget the annual cap. The result is a correction in the annual settlement.

Use the KUP calculator to compare variants.

Limit of tax‑deductible costs — annual rule

KUP limits are annual. Regardless of the number of contracts or employers, the total costs in a year cannot exceed statutory thresholds.

Limit of tax‑deductible costs with multiple employment contracts

If you work for more than one employer or have different income sources, costs add up. This often leads to exceeding the cap, especially when each payer applies costs automatically.

50% KUP and a separate limit

Copyright‑related costs have their own annual limit. If you combine copyright income with other sources, you must track both limits.

When limits are exceeded most often

• multiple employers at the same time,
• combining employment with mandate or work contracts,
• using 50% KUP together with employee costs,
• no correction in PIT.

What to do after exceeding the limit

After the limit is exceeded, further costs should not increase KUP. In practice, you need to correct the annual settlement. Verify whether the payer applied limits correctly and whether PIT reflects the real values.

Practical scenarios

Scenario 1: two employment contracts. Each payer applies costs, but the annual limit is shared — check PIT totals.

Scenario 2: a work contract with 50% KUP plus employment. Track two limits and sum them correctly in the annual return.

Common mistakes

• no control of annual limits,
• assuming each payer “counts separately”,
• ignoring copyright costs in totals,
• no correction in PIT.

Checklist before filing

• sum costs from all sources,
• check whether limits were exceeded,
• ensure PIT values are correct,
• keep documents supporting KUP.

How to monitor limits during the year

The simplest way is to keep your own summary of costs from each contract and compare it with the annual limit. Payslips, invoices and payer statements help you see when the cap is close.

PIT‑11 as a control point

PIT‑11 shows costs applied by the payer. With multiple contracts, compare all PIT‑11 forms and check if the total fits within the limit. If not, correct the annual PIT.

What exceeding the limit means

After the limit is exceeded, additional costs should not be included. In practice this can mean a tax top‑up in the annual return, so it is better to react earlier.

Correction in the annual return

If the limit was exceeded, enter the correct total KUP in the PIT return. Keep contracts and cost summaries in case verification is needed.

Changing jobs during the year

A new employer applies costs from the beginning, but the annual limit does not reset. You need to track total costs for the whole year.

How to avoid exceeding limits — practical tips

• keep a simple summary of costs from each contract,
• update payer statements after changes during the year,
• check the limit whenever you sign a new contract,
• keep documents that support your eligibility,
• for 50% KUP, monitor the separate cap.

When the limit is close

If you see the cap is close, prepare for a correction in the annual PIT or use standard costs in part of the contracts. This reduces the risk of a year‑end tax top‑up.

Quick 3‑step check

• gather all PIT‑11 forms and contracts,
• sum KUP for the whole year,
• compare the result with the current limit.

Monthly costs vs the annual limit

Monthly advances do not always show whether the annual cap was exceeded. That is why the final PIT check is essential.

Sources

• PIT Act — tax‑deductible costs (ISAP)

Tax‑deductible costs in the annual settlement

The annual PIT is where you verify whether the limit was exceeded. If it was, correct the values so they comply with the rules.