The tax discount helps reduce the amount of tax you pay. But when should you choose which option? We’ve made it simple so you won’t be caught off guard!
Here are the four options you can choose from:
-
Yes, with tax discount (loonheffingskorting)
Choose this option if you have one source of income, or if one income is your main income (e.g., salary). You’ll receive the tax discount on this income every month. Remember: you can only apply the discount to one income at a time. -
Yes, without tax discount
Choose this option if you don’t want to apply the tax discount. This is useful if you have multiple incomes and don’t want to risk receiving too much discount. You might get a tax bill later, but you’ll receive the correct amount of discount on your final tax assessment. -
Yes, with tax discount including AOW (state pension)
If you receive both AOW (state pension) and another income, like a pension, you can choose this option. Be careful though: if your combined income exceeds €28,406, you may receive too much discount. In that case, you’ll need to pay back some tax when you file your tax return. -
No
Choose this option if you don’t want to apply the tax discount. This means you’ll pay a little more tax each month, but you’ll receive the tax discount later when you file your tax return. This is a good choice if you have multiple incomes and don’t want to risk getting too much discount.
Why is it important to choose correctly?
If you have multiple incomes, you could receive too much tax discount if you’re not careful with your total income. This means you might get a surprising tax bill later. A preliminary tax assessment can help prevent surprises, as it calculates your correct tax discount in advance.
Want more info? Check out the Belastingdienst website for all the details.
