Personal allowances
Certain expenses related to a personal situation, called 'personal allowances', may be tax-deductible. These extra expenses are treated as part of a personal allowance. They include:
- Paid alimony
- Specific health care costs
- Costs for a temporary stay at home for severely disabled children who normally live in a residential care centre
- Expenses for educational purposes (up to 2020)
- Gifts
- Maintenance costs for registered monumental buildings (up to 2018)
- Loan to a start-up company (venture capital)
Alimony paid to an ex-partner
Paid alimony can be deducted from box 1 income. Other costs for dependants may be included. You do not need a court settlement for alimony payments to claim this personal allowance. An ex-partner is a former wife or husband (after a divorce), someone with whom you lived, or a wife or husband from whom you are separated. Note: as of 1 January 2022, a maximum of 40% of alimony paid can be deducted for an income of € 69,398 and upwards. For 2021, a maximum of 43% of alimony paid can be deducted for an income of € 68,507 and up.Tax Deductible Expenses
The following expenses are tax-deductible:- A periodic payment for partner alimony and any supplementary payments
- A lump-sum payment for partner alimony
- A lump-sum payment for an annuity settlement with an insurer
- Partner pension paid in the form of an alimony
- Payments to settle pension entitlements, annuity and other income insurances for which premiums have been previously deducted
- Settlement of social security payment claims by an ex-partner
- Mortgage interest tax relief (hypotheekaftrek) for a home where you used to live with your partner but have now left, while the partner continues to live there (for up to two years after the move)
The following expenses are not tax-deductible:
- Expenses for attorneys, lawyers and court cases to determine, alter or end alimony payments
- Pension entitlements paid directly to an ex-partner
Specific health care costs
Specific health care costs may be tax-deductible. The following conditions for this personal allowance are necessary:- The specific health care costs don't fall under the health insurance excess (i.e. they are not part of an insurance policy)
- Expenses directly related to the medical condition are tax-deductible
- The deduction should be for the tax year in which the expenses were made
- Expenses for which no coverage can be obtained from a health care cost insurance and for which no allowance is available, qualify as a deductible
The qualifying expenses made for the following people are tax-deductible as well:
- You and your fiscal partner
- Children younger than 27 years if they cannot afford the expenses
- Severely disabled persons of 27 years and over, who are part of your family household
- Parents, brothers, and sisters who are part of your family household
Expenses for educational purposes
Expenses for education purposes can be tax deductible if they meet the following criteria (up to 2020):- You are not entitled to a scholarship
- The education is to improve your position on the work market
Expenses directly related to education are tax-deductible, such as tuition fees, course fees, and examination fees and study or course material such as specific books and software. The educational expenses for a fiscal partner can be included as a tax-deductible.
The following expenses are not tax-deductible:
- Costs for a (laptop) computer, printer or other peripheral items
- Travel expenses
- Interest payments for education
- Expenses to furnish or equip a study room