Households with underage children received an extra 2,824 euro compensation on average through income and tax measures for families in 2007. This is the equivalent of 1,567 euro per child. These regulation cost the Dutch treasury a totall 5.5 billion euro.
Children’s allowance accounts for most extra money
Children’s allowance is the largest government contribution for families, and is not means-tested. In 2007, a family with underage children received an average 1,648 euro in children’s allowance.
Benefits from tax and income regulations for families with underage children, 2007*
Tax deductions important for lowest income families
In addition to children’s allowance, households in the lowest income category were mainly compensated through tax deductions for children (785 euro) and for single parents (571 euro). These families did have the problem that they could not realise 412 euro of the deductions, as they did not pay enough tax. Low income families received a total off 3,243 euro extra on average.
Benefits from tax and income regulations for families with underage children by income category, 2007*
Single-parent families benefit most from regulations
Single parent families benefit most from the various regulations. They can also claim (supplementary) tax deductions for single parents. In 2007 this gave them an extra 1,700 euro on average. Overall, single parent families received 4,150 euro extra in 2007. This amount would have been higher if they has been able to realise all the tax deductions; an average 458 euro remained unrealised.
Benefits from tax and income regulations for families with underage children by household type, 2007*
Combined deduction mainly significant for higher incomes
The (supplementary) combined deduction is received mainly by middle and higher income categories. This is connected with the criteria for these deductions, namely receiving enough income from labour. If both parents have paid work, the joint combined deductions can rise to nearly 1,000 euro. In 2007, double-income households with children received an average 620 euro in combined tax deductions.