Until 2023, only the SVB is allowed to apply the single parent credit when deducting payroll taxes. From 2024, every employer and benefit agency will be allowed to do so.
Single parent discount
Eligible for the single-parent tax credit are employees/beneficiaries who:
- entitled to an AOW benefit for a single person;
- receiving an AOW benefit for married couples, but no longer living together because the partner lives in a care home, for example.
The single-parent tax credit is €524 in 2024 (2023: €478) and applies regardless of the level of income.
Choosing
The employee/beneficiary must choose which withholding agent he will have the tax credits applied. He must make this choice known to the employer/benefit agency in writing. This can (but is not obligatory) be done with the form made available by the Tax Office for this purpose Declaration of data for payroll taxes. This form will be expanded by mid-December 2023 to include a question on the single parent tax credit.
CAUTION: It is not wise to have multiple employers/benefit agencies take tax credits into account when withholding income tax. If you do, you will usually have to pay a hefty additional amount on your income tax assessment.