It’s that time of year again, there’s no escaping it: the government would like to receive our tax returns. Don’t think this applies only to your parents, it also pays to file your tax return if you’re a student. Especially when you have a side job!
All the energy you put into your side job pays off in the form of a monthly salary. That’s great, of course, but you may just be paying too much income tax on that salary. To get those overpaid taxes refunded, you have to file a tax return.
In the Netherlands, everyone who works pays income tax, but is also entitled to the general tax credit and the working person’s tax credit. If you earn up to approximately €13,000, you will pay just as much in income tax as you receive in tax credits. You will then effectively be working tax free!
Let’s say you make €11,000 a year. You would then pay 36.97% in income tax on that amount in 2024. However, you would also be eligible for a €927 working person’s tax credit and the €3,362 general tax credit. As a result, the income tax is completely cancelled out by the tax credits.
If you earn more than €13,000, good for you! Don’t let the previous startle you, because tax on income of up to €24,813 is fortunately also very low. This is because of the income-related component of the working person’s tax credit. If you earn between €13,005 and €24,813, you will only pay 5.537% in tax. Only when you earn more than €24,813 a year will you start paying proper income tax.
