Who is affected?
The increase applies to a parent supporting 2 or more children under 18, or students under 26. All conditions for claiming the credit remain unchanged. The parent must support the child; if the child is over 18, the parent must also provide confirmation of the child's studies with their tax return. Only one parent can ever claim the child tax credit.
How large is the increase?
The increase applies retrospectively from the start of 2021. Although the change took effect on 1.7.2021, it will only be reflected in your tax return or annual tax reconciliation for 2021.
| Annual tax credit for | Previously | Now | Change |
| 1st child | 15.204,- | 15.204,- | none |
| 2nd child | 19.404,- | 22.320,- | +2.916,- |
| 3rd and each subsequent child | 24.204,- | 27.840,- | +3.636,- |
You can expect a refund through your return or reconciliation of 2,916 for the second child and 3,636 for the third and each subsequent child.
In an annual tax reconciliation, the credit will appear no later than March 2022 payroll. If you file an income tax return, the timing depends on how quickly you file it.
It is a little help for parents supporting several children. But it is good that, while everything is getting more expensive, tax credits are beginning to move too. More changes like this, please. 🙂
If you are unsure, do not hesitate to get in touch and we will look at it together. 🙂