Do minors have to pay taxes?

Income is taxed on the person who receives it, but what about minor children? Do they have to pay taxes themselves or are the parents assessed for tax? Underage children are defined as young people who are not yet 18 years old. Not all of the young person’s income is taxed by the young person. If the young person is not assessed, the taxpayers with parental authority will be assessed for tax. A young person with a job as a shelf stacker is himself assessed for tax. In the following cases, the tax is collected from taxpayers with parental authority:

  • Taxable income relating to a private home registered in the name of a minor;
  • Taxable result from other activities because the young person has made assets available (for example renting out real estate);
  • Taxable income from a substantial interest (box 2 of our tax system);
  • Dividend tax insofar as this relates to a disposition scheme;
  • Taxation of wealth.

What income is taxed on the child?

All income that does not relate to the above list will be taxed on the minor himself. This includes, for example, income from work, profit from business and periodic payments and benefits in kind. An exception is made for income arising from an annuity insurance policy taken out before 1992.

Request a refund of excess tax collected

Young people who perform paid work in addition to their education are encouraged to report the crime. In many situations, too much tax is charged. The employer is obliged to make these deductions. Does the young person not take action? Then the excess tax paid will not be offset. When settling wages from gross to net, the employer may not take into account tax credits to which you are entitled.

How can you claim tax money back?

In the past, young people could complete a Tj form to reclaim excess tax paid. This form no longer exists since 2010. The P form must now be completed for the refund. This can be done in writing, but it is easier to file the declaration electronically. While completing the form, you will receive tips specific to the section you are completing. Sending is done with Digid. If you have any questions about completing the form or the program, please contact the Tax Line.

From what age are young people allowed to work?

The minimum age to earn money is 13 years. 1 in 3 young people aged 13 and 14 earn extra money according to Nibud. 60% of 15 and 16 year olds have a job besides their school. There are requirements for the work that young people are allowed to perform. For example, a 13-year-old may not work more than 2 hours on a school day, and not at all on Sundays. They are only allowed to do light work, such as delivering leaflets and picking fruit.

Working without a pay slip

Tax must be paid on the income of young people. The employee should receive a pay slip from the employer. These pay slips are proof that tax has been paid on the work. Not only is the employer at fault when it comes to undeclared work, the employee can also be held accountable for this. It is also not smart for young people, because under certain conditions the full amount of tax levy, or a large part of it, will be returned via the Tax Authorities.