Study and tax
Fiscal aspects of Study Financing
The rules and regulations stated below apply mostly to Dutch students. In some cases, foreign students can apply for study financing or a refund of tuition fees. For more information you can consult the Informatie Beheer Groep (www.ib-groep.nl).
According to the WSF 2000, study financing is covered by a special tax regime: part of the amounts paid is tax-free, while only a small part is taxable. Because of this favourable tax regime, study expenses cannot be claimed as tax deductions.
The following are non-taxable:
- the basic grant and the supplementary grant
- the student travel pass
- the part of the study financing received as an interest-bearing loan
If having no study results causes the allocated amounts to be interest-bearing loans, this also creates greater opportunities for tax-deductible study expenses. Such deductions can be obtained by submitting a T-form. If the amount of tax has already been established, a request for a reduction may be submitted.
As the performance grant is initially supplied as a loan and is only converted into a grant afterwards, this would formally mean that the year of conversion should be regarded as the year for taxation: sometimes this may be advantageous, but it often results in a financial disadvantage. The same can apply to back-payments. If such is the case, best you can do is contact the tax authorities.
This is a way in which the tax office allows the student (option right) to take the fiscal consequences of the grant and the deductions in the year in which such is most favourable.
Fiscal advantages for parents of students without FA
As long as students receive WSF, their parents cannot deduct any expenses on their tax forms, even if they provide financial support. This changes when study financing is no longer received or when you are entitled to a so-called (0) loan. Even if students do not wish ask their parents for support, they would be well advised to enquire what the fiscal advantages could be. In general, parents may deduct as ‘personal deduction. This opportunity applies to children to the age of 30 years.
Students with their own income, but without study financing may be entitled to a personal deduction as a result of the costs made for their studies. This applies both to full-time and part-time students.
The tax office may be consulted regarding the possibilities and regulations or visit the Internet (www.belastingdienst.nl).
