Debts can have an impact on the benefits you receive. The Tax Authorities have the option to offset benefits against outstanding debts, but must take your minimum subsistence into account.
Offsetting against outstanding tax debts
The Tax Authorities may deduct benefits from:
- Outstanding tax debts still to be paid
- Recoveries of previously received benefits
- Debts to other government bodies (via the CJIB)
Minimum amount for subsistence
When offsetting benefits, the Tax Authorities must observe the garnishment-free amount. This is the amount you need to live on, 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 a period before your relationship.
Help with financial problems
If offsetting causes financial difficulties, you can take measures:
- Apply for an individual payment arrangement with the Tax Authorities
- Contact the Municipality of Utrecht for debt assistance
- Check whether the garnishment-free amount has been calculated correctly
Debt restructuring (WSNP) and benefits
If you are in the WSNP (debt restructuring), benefits are not used to repay old debts. The benefit is transferred to the administrator, who distributes the amount.
Frequently asked questions about benefits and debts
May the Tax Authorities withhold my entire benefit?
No, the Tax Authorities are obliged to respect the garnishment-free amount, so that you have enough left for subsistence.
Does my partner's debt affect my healthcare benefit?
Yes, healthcare benefit may be offset against your partner's debts. You can lodge an objection if you consider this unjustified.
How can I apply for a payment arrangement?
Contact the Tax Hotline or send a written request to the Tax Authorities. Clearly explain your situation and request a suitable arrangement.
Local support in Utrecht
For legal assistance, you can go to:
- District Court Midden-Nederland, Vrouwe Justitiaplein 1, Utrecht
- Legal Counter Utrecht, Catharijnesingel 55, Utrecht
Extra questions about benefits and debts
What is the garnishment-free amount and how is it determined?
The garnishment-free amount is the minimum amount you need to live on that may not be withheld. This amounts to approximately 95% of the social assistance norm and is determined based on your personal circumstances, such as family situation and age. The Tax Authorities must respect this. For an exact calculation, you can contact the Tax Authorities or a debt counselor in Utrecht.
May the Tax Authorities offset benefits against an ex-partner's debts?
No, an ex-partner's debts are not offset against your benefits, unless you were benefit partners at the time the debt arose. If in doubt, request an overview from the Tax Authorities or consult a legal advisor via the Legal Counter in Utrecht.
How can I prevent my benefits from being offset?
You can apply for a personal payment arrangement with the Tax Authorities or seek debt assistance via the Municipality of Utrecht. Always respond to correspondence from the Tax Authorities and explain your financial situation. In some cases, it is possible to object to the offset.
What happens to benefits during the WSNP?
During the WSNP (debt restructuring), benefits are not offset against old debts. The benefit goes to your administrator, who distributes the amount between you and your creditors according to an established arrangement. This provides more certainty, but cooperation with the administrator is essential.
How long does it take before offsetting stops?
The Tax Authorities stop offsetting as soon as the debt is settled, a payment arrangement is agreed, 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 to monitor the situation.
May I object to the offsetting of benefits?
Yes, within six weeks of the offsetting letter, you can lodge an objection with the Tax Authorities if you find the offset unreasonable or if the garnishment-free amount has not been applied correctly. Attach evidence, such as an overview of your finances, and substantiate your objection.
What if I find the garnishment-free amount too low?
If you believe the garnishment-free amount is incorrect, you can request a recalculation from the Tax Authorities. Indicate why you find the amount too low and support this with, for example, a financial overview. Need help? Visit the Legal Counter in Utrecht.