As of 2015 a number of tax benefits regarding the cost for your children have disappeared.
Which benefits are gone? compensation single parents, changes in child related budget.
Which benefits are gone?
* Single parent credit (Alleenstaande ouderkorting). This discount amounted to € 947, – in 2014 (for state pension recipients € 481,-). In some cases, people had the right to an increase, but this is also removed.
* Deduction maintenance children (Aftrek levensonderhoud kinderen). This deduction is especially important for divorced parents who only partially raise their children and therefore do not receive child benefit. The deduction has already been reduced by about 30% in 2014 and is gone as of 2015.
* Parental leave discount (Ouderschapsverlofkorting). If you made use of parental leave in 2014 you sometimes were entitled to parental leave discount. This discount is also removed as of is 2015.
The disappearance of the above mentioned discounts will be compensated for certain groups of taxpayers through the child related budget (kindgebonden budget). The height of the child related budget will change in different ways. What this means for your situation depends on your income, a possible partner, number of children and their ages.
Compensation single parents. For single parents the amount of child related budget will be increased up to € 3.050,- per year. This compensates for the fact that the single parent tax credit had disappeared.
Changes in child related budget
The child related budget will be calculated differently in 2015. In 2014 one received the full amount of child related budget with an income up to € 26,147,-. With a higher income the amount would go down. From 2015 onwards, the maximum amount of child related budget will be received with an income up to € 19,676,-. With a higher income the amount will go down.
For more information or for a calculation regarding your personal situation please contact expatsHaarlem Work Services.