Taxes for students: what you need to know

The word 'tax' often elicits a deep sigh from many students. This is a topic that can seem complicated and overwhelming, but with a bit of explanation and a few examples, it will quickly become much clearer. In this blog, we're talking about student income tax. It explains how it works, what your rights and obligations are, and more importantly, how much you can earn tax-free as a student.

What is income tax and when should you file a tax return as a student?

Let's start with the basics: what is income tax anyway? Simply put, income tax is the portion of your income that you have to pay to the government.

As a student, you only have to file a tax return if you receive a tax return letter and the amount you would have to pay is more than €47. But even if you do not receive a tax return letter, it is useful to file a tax return. You can then see if you get money back! You can file this income tax return via the app (Android and iOS) or via the tax authorities' website.

Can you get your tax back as a student?

Yes, it's possible! However, to get money back, you must file the income tax return. By the way, don't make the mistake of thinking that a tax refund is free money. That money was always yours, but you paid too much because too much was deducted from your salary. Good to know: you can file a tax return up to 5 years after the fact.

How much can you earn tax-free as a student?

In principle, you have to pay tax on every euro you earn. How large this percentage is depends on the bracket you fall into. Currently, our tax system only has two tax brackets. You pay 37.10% on your income up to €68,508 and 49.50% on everything above that. Most students will only deal with this first tax bracket during their studies. However, if you work as an employee, you can earn up to €8520 in 2023 without having to pay tax.

How and when will I receive my annual statement?

Each year, you will receive the annual statement no later than the last week of January. It will be sent by e-mail. Your annual statement shows how much you earned in the past year and how much tax you paid. Check the 'Belastingdienst' (Dutch Tax Authority) website to see if you are entitled to a tax refund. To do this, you need the details from your annual statement.

What is wage tax credit?

Tax credits are reductions in taxes. As a result, you pay less tax. The wage tax credit may only be applied to one employer. When you come to register at one of our branches, you can indicate whether or not you want wage tax credit to be applied. If you wish to change your choice later, you can inform the branch with which you are registered.

General tax credit

The amount of tax credit you receive depends on your income. If your income is between 0 and 21,043 euros, the general tax credit is 2,837 euros.

Tax matters may seem complicated, but with a little knowledge and perseverance, they quickly become much simpler. The most important thing is that you understand your responsibilities and what you are entitled to.

Important tips and advice

• Always have your DigiD with you when you file your tax return. This is needed to log in to the tax authorities' website.
• Always check if the pre-filled data is correct. The tax authorities try to make it easier for you by filling in some data for you, but these are estimates and therefore may differ from the actual situation.
• Did you know you can also get back study travel costs? If you need to study more than 10 kilometers away, you can claim these costs as personal contribution.
• Don't forget to fill in your healthcare costs. Many students do not know that they can deduct part of their healthcare costs from their taxable income.

Conclusion

Taxes can seem overwhelming, but with the right knowledge and information, you can ensure that you don't pay too much and may even get your money back. It's important to understand what you're taxed on, which tax reductions and deductions you can claim, and how to file your return. Recruit a Student has the most exciting job opportunities and can find the part-time job that suits you! Register here to always be up to date with our latest job vacancies!