It is important to report changes in your situation timely to the Belastingdienst. When doing this, you prevent getting to much allowance with the consequence of having to pay it all back at once.

When you expect you are no longer entitled to a specific allowance, it is useful to suspend your allowance instead of stopping it. Suspend your allowance in “Mijn Toeslagen” by setting your income at a high amount such that you are no longer entitled to the allowance. When it appears that you were entitled to the allowance, because your income was below the maximum you will receive the allowance automatically. When you stop your allowance and it appears that you were still entitled to it, you have to apply for the allowance yourself. You have to do this before the 1st of September.

The Belastingdienst takes into account the capital you own at the 1st of January when determining whether if you are entitled to an allowance. When you expect you are going to pass the capital limit slightly, it is advisable to spend some money. For example by spending money on donations or annuity. In this case, you reduce your taxable income and you are entitled to allowances. However, you can also choose to spend your money differently.