Many parents miss that their young must declare, warns the Swedish Tax Agency.
– It is not certain that everyone has control over their digital mailbox and that the declaration has arrived there. So as a parent, it’s good to remind, says the Tax Agency’s section manager Alem Resulovic to Dagens Industri.
Kids making money…
Above all, it applies to children who earned at least SEK 22,208 in 2023. This can come from earned income such as summer jobs or weekend work.
But it also applies if you were to sell housing or shares. And savings count.
220,000 children
To declare for the child, both guardians must sign the declaration, if the child is under 16 years of age.
220,000 children save, for example, in what is called an investment savings account, ISK. It is a convenient way for parents to save money for their children, as the tax is very low on an ISK account.
Not everyone will have to pay tax, because you only have to pay if you make a big enough profit.
Not all children with an ISK account have had to declare this year. But 140,000 people under 18 have received a suppressed declaration this year.
A tax liability of less than SEK 100 on the tax account does not need to be paid in the same year as it arose. Then you can wait until the debt reaches SEK 100.
It appears from the Swedish Tax Agency website.
If your child saved x kroner on the stock market…
The past year has been a top year for the stock market.
Savers who deposited their money on Avanza Zero, for example, have seen their money increase in value by 18.46 percent in one year. On Nordnet’s fee-free Sweden index fund, they have received almost as much, 18.13 percent in one year.
The tax is not expensive, often it is only a few hundred Swedish kroner. But if you miss paying it, a large part of the profit can be eaten up by late payment interest.
That’s how high the late payment interest is
If you miss paying your back tax, the default interest is a whopping 18.75 percent.
– Regardless of whether you receive a declaration form or just a final tax statement for your child, the advice is to pay in on time, says Alem Resulovic to the newspaper Dagens Industri.
Calculation example
This is how the Swedish Tax Agency writes about children’s ISK:
“If your child’s capital income (for example dividends and standard income) is lower than SEK 200, the income is tax-free.
If capital income is over SEK 200, the child must pay tax. A fund holding of, for example, SEK 75,000 gives a standard income of SEK 300, which means that the tax will be SEK 90.”
Go to the Swedish Tax Agency’s website and log in with your account. If your child’s declaration is there ready to be signed by you and the possible other guardian, be sure to do it smartly.
Even if only small sums are to be paid, it is important to do so on time.
Read more about tax and finance:
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