Non-working spouse benefit
How people look at the non-working spouse benefit has changed over time. The term comes from the time when mainly men worked. The official name the tax authorities gave to this benefit is the general tax credit. Eventually, the benefit will expire. But in this article, we tell you how you can still use it today!
When are you entitled to the non-working spouse benefit?
There are several conditions you must meet if you want to be eligible for the non-working spouse benefit. We list them here for you:
- You are at least 21 years old;
- You have had your tax partner for at least six months;
- Your income does not exceed € 6,500 on an annual basis;
- Your tax partner’s income is high enough so that he or she can receive the benefit.
So, this scheme basically means that the partner who does work can apply for the benefit when filing the income tax return. However, the money will be deposited into the account of the partner that earns the least.
Phasing out the non-working spouse benefit
The non-working spouse benefit is a tax refund for the least-earning partner (or better to say: not working partner). Yet, many people do not agree with this arrangement because it does not stimulate people to work. Therefore, the benefit is being phased out further; from 2023, the scheme will stop completely for people born after 1963.
By phasing out the scheme, the amount of the tax credit largely depends on the year you were born:
- Were you born before 1963? Then, you will receive the full amount (in 2021, this is € 2,837).
- Were you born in or after 1963? Then, you will only receive part of this amount (in 2021, this is 13.5%).
Apply for the non-working spouse benefit
It is easy to apply for the non-working spouse benefit. You just have to correctly file your tax return. This allows the tax authorities to see that you meet all the conditions. After this, the benefit is settled automatically. Based on the income and the tax to be paid, the tax authorities calculate if you are entitled to the full amount or part of it. Don’t want to wait for this? Then, apply for a provisional assessment.
Have you never filed your tax return because you had no income? And do you now realize that you have been entitled to the non-working spouse benefit for some time now? By correcting the tax returns, you can still apply the benefit for the past five years.
Reaching the state pension age
Has the highest earning partner reached the state pension age (AOW)? You are still entitled to the money of the benefit, but it could be the case that the amount might be less. However, if the non-working partner starts to receive AOW, you will no longer be entitled to the non-working spouse benefit. Because from this moment on, you will have income, and the right to the benefit will lapse.
We are happy to help!
Do you still have questions left about the non-working spouse benefit after reading this article? Or do you want our help with applying for the provisional tax return? We are happy to help! Please, contact us using the information mentioned below.
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