Every parent knows: children not only bring joy and cherished moments but also additional expenses. From schoolbooks to new clothing and those spontaneous treats – the costs can add up. To support families, the Dutch government introduced the Dutch child budget (kindgebonden budget). This financial support, which you can receive on top of the child benefit (kinderbijslag), is an income-dependent contribution for children up to 18 years old. This scheme is not only intended for families with a lower income but also provides support to families with an average income. What exactly is the child budget, are you eligible for it, and what does it mean in different family situations like co-parenting?
In addition to the child benefit
What makes the child budget special is that it comes on top of the regular child benefit. While the child benefit is the same for every family with children, the child budget varies based on income, assets, and family situation. That’s why the child budget can make a significant difference in some families’ monthly budget.
Are you eligible for the child budget?
A fundamental condition for the child budget is that you receive child benefit (kinderbijslag) for your child(ren). In most cases, when you receive child benefit, you will automatically be notified about the child budget (kindgebonden budget). If you don’t receive any other allowances, you might have to apply for it yourself.
Asset Limit for Child Budget in 2023
| Situation | Asset Limit |
|---|---|
| Individual | No more than € 127,582 |
| With a benefit partner | Together no more than € 161,329 as of January 1, 2023 |
Having excessive assets can impact your eligibility for the child budget. If you exceed the stated asset limits, you will not qualify for this allowance. Excessive savings, investments, or other assets can result in you missing out on this financial support.
Income Limit for Child Budget in 2023
Your income plays a vital role in determining your eligibility for the child budget and its amount. The exact income limits may vary depending on the number of children you have and whether you have a benefit partner.
Income Limit for Single Parent
| Number of Children | Assessment Income |
|---|---|
| 1 child | € 106,566 |
| 2 children | € 129,262 |
| 3 or more | € 151,958 |
Income Limit for Parent with Benefit Partner
| Number of Children | Assessment Income |
|---|---|
| 1 child | € 67,885 |
| 2 children | € 90,582 |
| 3 or more | € 113,278 |
If your assessment income is below the stated amount, then you are eligible for the child budget. As seen, there’s a high likelihood of eligibility. The lower your assessment income, the higher the child budget.
Annual Amount for Child Budget in 2023?
| Number of Children | Maximum Child Budget 2023 | |
|---|---|---|
| Single Parent | Parent with Benefit Partner | |
| 1 child | € 5,501 | € 1,653 |
| 2 children | € 7,033 | € 3,185 |
| 3 or more children | € 8,565 | € 4,717 |
Special Age Milestones
Every parent knows that as children grow older, their expenses can increase. For instance, the educational expenses for high school students. Therefore, the child budget is increased when your child reaches specific age milestones.
When your child turns 12, the child budget increases. This additional amount assists with the extra schooling costs and activities that usually increase at this age. A second increment is applicable when your child turns 16, leading to another rise in the child budget. This serves as a contribution towards schooling costs and possibly for things like driving lessons or other courses.
| Child’s Age | Increase 2023 | Total Additional Amount 2023 per Child |
|---|---|---|
| 12 years | € 267 | € 267 |
| 16 years | € 209 | € 476 (cumulative) |
It’s important to remember that the amount of these additional compensations also depends on your income. The higher the income, the lower the allowance and the increase. This is in line with the Dutch tax system’s progressive nature.
Specific Family Situations and Exceptions
Not all family situations are the same. Some might affect your eligibility for the child budget.
Joint custody, blended families, step-, foster-, and adopted children: special rules might apply, such as which of the parents receives the child budget.
Living or working abroad: different rules might apply if you, your partner, or your child lives or works in another country.
What about joint custody and the child budget?
When parents divorce but both remain actively involved in the upbringing and daily care of their children, it’s referred to as joint custody. This brings specific considerations, including regarding the child budget.
Definition of Joint Custody
First and foremost, what does it mean to be a joint custodian (co-ouder)? Joint custody means sharing the daily care and upbringing of your child with your ex-partner. This can be arranged in several ways, such as:
– Your child stays with each of you every other week.
– Your child stays at least three full days a week with each parent.
– Your child stays four full days with you this week and two full days with your ex-partner, and vice versa the following week.
Who receives the child budget?
The child budget (kindgebonden budget) is paid to the parent who receives child allowance (kinderbijslag) from the Social Insurance Bank (SVB). As joint custodians, you can either keep it this way or jointly decide that the other parent should receive the child budget from now on. An essential consideration: it might be more financially beneficial if the parent with the lower income receives the child budget since the allowance depends on income.
It’s important to consider who among you is registered as the ‘applicant for the child allowance’ with the SVB, as this affects who receives the child budget.
Automatic Allocation: How does it work?
If you’re already receiving an allowance, like childcare allowance, rent allowance, or health care allowance, you’re likely to automatically receive information about the child budget. The government aims to streamline this process, so you don’t have to submit multiple applications unnecessarily.
Eligible but haven’t received a notification?
However, as with every rule, there are exceptions. There might be times when you believe you’re eligible for the child budget, but you haven’t received any notification. This might occur if you’re not receiving any other allowances. In such a case, it’s essential to take action.
The good news is that applying for the child budget is relatively straightforward. Through ‘Mijn toeslagen,’ you can submit the application yourself. By following the steps there, you can quickly determine your potential eligibility for the child budget. If you prefer having someone else handle it, you can contact Taksgemak to apply for the allowance.
Extras and Bonuses
Every situation is unique, and the Dutch allowance system recognizes this. In addition to the basic amount of the child budget, there are supplementary schemes that you might benefit from, depending on your personal circumstances. Let’s take a closer look at these extras.
More child budget for single parents
Parenting can be quite challenging, especially if you’re doing it alone. Hence, there’s an additional financial compensation for single parents. This extra amount is intended as a contribution to living expenses, on top of the regular child budget. Therefore, as a single parent, you receive more child budget than two-parent families. Refer to the table above.
Special Age Increases
As children grow older, costs, like schooling or activities, can rise. That’s why the child budget offers additional support when your child reaches the ages of 12 and 16. These adjustments assist parents in coping with increasing expenses. The exact increase depends on your income, with higher incomes leading to a smaller allowance increase. Refer to the table above.
Conclusion
The child budget plays a significant role in financially supporting many families in the Netherlands. This scheme ensures parents have sufficient funds to meet their children’s needs.
Changes in personal situations, like a new job, moving, or changes within the family, can affect the amount of child budget you’re eligible for. It’s therefore vital to report such changes promptly.
As with many government schemes, understanding all the details and nuances can sometimes be challenging. You might choose to outsource your tax filing and allowance application to Taksgemak.
About the author: Farshad Bashir combines his passion for entrepreneurship with tax advice at Taksgemak to assist businesses and individuals with the complex world of tax regulations. He simplifies the complicated and ensures his clients stay on track. Before diving into the consulting world, he was a member of the Dutch Parliament. This combination of political experience and tax knowledge makes him an excellent partner for anyone.
