If you're doing your Dutch tax return and have a child, you can claim an extra refund - that's up to €2835 in outstanding tax to be recovered! Learn more about what an extra refund for a child from the Netherlands is and whether you are entitled to extra money.
Inkomensafhankelijke combinatiekorting - child tax credit in the Netherlands
What exactly is extra child tax? It's nothing more than the right to a tax credit in the Netherlands Inkomensafhankelijke combinatiekorting. Anyone who has a child younger than 12 in the tax year and meets the conditions set forth in the legislation can claim it. Unfortunately, accountants often overlook the child tax credit in the tax returns of Poles working in the Netherlands. And that's a mistake, because it's an extra cash injection.
However, to receive the extra refund, you must meet the right conditions - your child must be under 12 years old on January 1 and be registered at the same address as you for at least six months during the calendar year.
Extra refund for a child from the Netherlands - who is eligible?
You can apply for the Inkomensafhankelijke combinatiekorting child tax credit for both your own child and:
- a stepchild,
- a foster child that you raise and support as your own child,
- an adopted child,
- a child belonging to your tax partner, if you live together,
- a child from a previous relationship of your spouse or registered partner.
Child tax credit in the Netherlands - income condition
To claim the tax credit in 2023, you must have an annual income of more than €5548. This makes you eligible for the income threshold, which is as follows:
Source: belastigndienst.nl
Interestingly, this income includes the total sum of income from employment throughout the European Union. Therefore, when applying for the relief, you can sum up all your income from the source: Arbeidsinkomen.
How much is the child tax credit in the Netherlands?
The case of each taxpayer is considered individually by the Dutch tax authority, and there is no single amount for the child tax credit in the country. Its amount will depend on the applicant's income and will be different each tax year.
If you want to find out how much extra cash you can get, it's worth using a special Dutch tax refund calculator - our Aangifte app will accurately estimate the amount of your settlement, taking into account all available allowances.
Tax refund for a child Netherlands - the child can live in Poland
How many people, so many opinions. However, the law clearly indicates that when applying for a child tax credit, the child does not have to live in the Netherlands. Also, if a Pole works seasonally, e.g. 3 months in the Netherlands, and the family resides in Poland, a tax credit is due. However, it is important to remember that you must be registered in Poland with the child and maintain a household. The matter is a little more difficult for those with permanent registration in the Netherlands. In this case, it must be shown that the center of life interests is in Poland, that is, where the child lives. How to do this? That's the job of tax consultants.
Separation or child tax credit
If you have a child younger than 12 years old, consider whether it's better to use the Inkomensafhankelijke combinatiekorting tax credit instead of the commonly called separation tax credit (joint settlement). First, by settling with a Fiscal Partner (i.e., a wife with no income, for example) you lose the right to the child tax credit. Second, the child tax credit in most cases comes out much more favorably than taking the Partner's share of the heffingskorting.
Extra return for a child from the Netherlands - Belastingdiesnt will reimburse you big time
It sounds like a tabloid headline, but it's true. If you have settled your tax from the Netherlands, remember that you can always exercise your right to a tax adjustment. Yes, we know that the time to appeal an Aanslag tax decision is only 6 weeks however, we know ways for the Belastgindienst to correct your 2018-2021 settlements. These are the facts. Our clients recover an average of 1850 EUR of tax refunds from the Netherlands for a year, so they can gain 23800 PLN thanks to the tax correction! All because they did not use their right to tax credits in previous years.
Wondering how much tax refund you will get from the Netherlands? Try out our Dutch tax refund calculator online 2023/2024 and find out what your return will be for the year. It is an extremely easy and intuitive tool to use – regardless of your salary and status, it ensures that every user will receive the most accurate overpayment calculation.
Don't wait any longer and download our Aangifte tax return app - it's the most convenient way to get a child tax refund in the Netherlands. You are welcome!
