Debts can affect your benefits. The Tax Authorities have the option to offset benefits against outstanding debts, but must safeguard your subsistence minimum.
Offsetting against outstanding tax debts
The Tax Authorities may deduct benefits from:
- Outstanding tax debts still to be paid
- Repayments of previously received benefits
- Debts to other government bodies (via the CJIB)
Respecting the garnishment-free amount
When offsetting benefits, the Tax Authorities must take the garnishment-free amount into account. This is the minimum amount you need for living expenses, approximately 95% of the social assistance norm.
Debts of a benefit partner
Be alert: if you have a benefit partner, their debts may be offset against your joint benefits, even if these debts date from before your relationship.
Applying for protection against offsetting
If offsetting causes financial problems, you can take steps:
- Apply for an individual payment arrangement with the Tax Authorities
- Seek support via debt counselling at the municipality of Leiden
- Check whether the garnishment-free amount has been correctly calculated
WSNP and benefit payments
If you are in the WSNP (debt restructuring), benefits are not used to repay old debts. The benefit goes to your administrator, who distributes the amount.
Frequently asked questions about benefits and debts
Can the Tax Authorities withhold my entire benefit?
No, the Tax Authorities must always respect the garnishment-free amount, so that you have enough left for living expenses.
My partner has debts. Will I lose my rent allowance?
Yes, rent allowance may be offset against your partner's debts. You can lodge an objection if this seems unfair.
How can I arrange a payment plan?
Contact the Tax Hotline or send a written request to the Tax Authorities. Describe your situation and request a suitable arrangement.
Extra questions and answers
What does the garnishment-free amount entail and how is it determined?
The garnishment-free amount is the minimum amount you need to live on that may not be offset. It amounts to approximately 95% of the social assistance norm, depending on your personal circumstances such as age and family. The Tax Authorities must leave this amount free. For an exact calculation, you can contact the Tax Authorities or debt counselling in Leiden.
Can benefits be offset against debts of an ex-partner?
No, debts of a former partner are not offset against your benefits, unless you were benefit partners at the time. If in doubt, you can request an overview from the Tax Authorities or seek advice from the Legal Counter Leiden (Stationsweg 46).
How can I prevent my benefits from being offset?
You can apply for a payment arrangement with the Tax Authorities or seek help via the municipality of Leiden for debt counselling. Always respond to correspondence from the Tax Authorities and explain your financial situation. In some cases, it is possible to lodge an objection.
What happens to benefits during the WSNP?
During the WSNP, benefits are not offset against old debts. They are paid out to your administrator, who distributes the money between you and your creditors according to a fixed plan.
How long does offsetting by the Tax Authorities last?
Offsetting stops once the debt has been settled, an arrangement has been made, or you are in the WSNP. The duration depends on the amount of the debt and your payment capacity. Stay in contact with the Tax Authorities for updates.
Can I object to offsetting?
Yes, within six weeks after the offsetting letter, you can lodge an objection with the Tax Authorities if you consider the offsetting unjustified or the garnishment-free amount has not been correctly applied. Attach evidence, such as an overview of income and expenses.
What if I find the garnishment-free amount too low?
Request a recalculation from the Tax Authorities if you believe the garnishment-free amount is incorrect. Indicate why you consider the amount incorrect and attach relevant documents.
Local support in Leiden:
- Court: District Court of The Hague, Leiden Location
- Legal Counter: Legal Counter Leiden, Stationsweg 46