Surely everyone living in the Netherlands has heard about the “non-working partner tax refund”. Here we will tell you in detail what it is, who and how can use it and how to do it with maximum benefit, as well as what to look out for.
So the so-called non-working partner tax credit is actually an algemene heffingskorting that any adult living in the NL is entitled to. For those who have some kind of income (receive a salary, allowance, etc.), where discounts are deducted automatically, it has already been taken into account in payments.
If a person does not earn anything, then there is nowhere to deduct the discount. He nevertheless has the right to it. If at the same time a person lives alone, there is nothing to talk about. No income, no taxes, discount remains unused.
However, in the event that he has a fiscal partner, then, since according to the tax rules, all discounts can be distributed among partners as desired, which means that the discount of an inoperative partner can be applied to taxes paid by the working partner.
In this situation, the working (and tax-paying partner) applies both his and his partner's discount. His own discount has already been taken into account when calculating his salary (if he is not a private entrepreneur, but an employee), and he can request a second discount separately.
Who can benefit from a non-working partner tax refund?
There are several conditions under which it can be applied.
1. You must be fiscal partners. Read more about this. here.
2. You must have lived (that is, be registered) in the Netherlands for at least 6 months in the calendar year for which you want to receive a refund.
And since this is a tax refund, another condition is that the working partner has paid enough taxes. So, for example, if the partner is an entrepreneur with a small income who paid only 200 euros in taxes, it will not be possible to get back more than this amount.
If all the conditions are met, then a working partner who pays taxes can receive such a refund on his non-working partner or on a partner with a small (less than 6 thousand per year) income, if the person himself could not apply his entire discount (this can be, for example , aspiring entrepreneur).
The remuneration received from volunteer work is not taxable income, so those who received it are also eligible for the tax credit.
What can affect the tax refund for a non-working partner?
If you have income from abroad, you are no longer considered a low-earner.
If you have real estate abroad worth more than 30 euros. This also counts as income.
If you have just moved in, then you will not be able to receive the entire discount, but you will receive it in proportion to the time that you were in the country.
If you decide to take advantage of the tax rebate for a non-working partner, you should hurry up, since starting around 2015 this rebate is gradually decreasing (by the decision of the tax) and will decrease until it disappears completely. In this (2020) year, it will be approximately 543 euros. And in 2019, for which it can still be requested, it was 661 euros.
In addition, it must be remembered that the amount of the discount also depends on the year of birth of the non-working partner and the presence of children. Those born before 1963 receive a higher amount than those born after 1962. For people born before 1963, the tax credit for a non-working partner is equal to that of a working person, that is, about 2.400 euros in 2019. The exact numbers can be found on the tax website.
You can get this discount in two ways:
1. By filing a tax return for the past year, then the payment will be one-time;
2. Submission advance report (voorlopoge aanslag) for the next / current year and then it will be charged monthly based on the calculation of the total amount of the discount for this year and the number of months for which it must be paid.
Let's talk about the possible pitfalls of filing an expense report.
The main danger of asking for money in installments is that you ask for it sometime in the beginning of the year, during which changes may occur that will affect your eligibility to receive it. In this case, in the final calculation of taxes, you will have to return this money. Moreover, if you received them in relatively small portions of 50-60 euros per month, then you will have to return the entire amount in full.
In addition, if you have requested this tax refund in advance at least once, then it will continue to be paid in advance and you will have to cancel these payments by submitting a new advance report.
You must notify the tax office of a change in the situation yourself. So, if you did not work all year, but in November you still found work, in two months your tax credit will be automatically deducted when calculating your salary and it turns out that everything that you received in advance must be returned.
Therefore, it is recommended to request this tax refund after the fact, when everything is clear and nothing can change.
A common situation when for the sake of this discount people become fiscal partners. But this medal also has a downside. If you live together but are not a fiscal partner, the person earning less money is eligible for the zorgtoeslag (health insurance subsidy). So, for example, he pays 120 euros for insurance and gets 80 or 90 euros back. And that 90 multiplied by 12 months is already more than the tax credit for a non-working partner. And by becoming a fiscal partner, you will lose the right to this subsidy, since from that moment on, the total income will be taken into account. That is, you can get a refund, but you will have to refuse subsidies, which may turn out to be completely unprofitable.
Considering all of the above, in order to get the maximum benefit, it is better to consult with specialists, since they know exactly what else to look at and will be able to calculate the specific numbers of payments or discounts that are relied on you in your particular situation.
Publication Date: 27.03.2019
