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 are you entitled to allowances?
There are different kinds of allowances in the Dutch tax system. An allowance is a financial compensation for specific costs. Whether you are entitled to an allowance depends on your personal circumstances. It is advisable to check whether you are entitled to one of the allowances. It can be a substantial amount you are entitled to.
On this page, we elaborate on the 4 allowances which are present in the Dutch tax system.
The amount of your allowances depends on the income of your toeslagpartner as well. With this useful tool, you can determine whether you have a toeslagpartner or not.
Leave your details in our online contact form or call us at +31 (0)20 – 2170120 and we will get in touch to see if we can help you with filing the tax return.
Healthcare allowance (zorgtoeslag)
In the Netherlands, you are obliged to take out health insurance and the monthly payments for this insurance are substantial. The government compensates for this with healthcare allowance. Whether you are entitled to the healthcare allowance depends on different requirements. For example, your income may not be too high and you have to be 18+. Here, you can find more information about the healthcare allowance.
Rent allowance (huurtoeslag)
Rent allowance is compensation for rent costs you face. However, renting a house does not necessarily imply that you are entitled to rent allowance. To be eligible for rent allowance, you must meet several requirements. Here, you can see which requirements need to be fulfilled.
Child budget (kindgebonden budget)
Child budget is supplementary to child benefit. Child budget compensates costs you face for children up and until 18 years. The amount you will receive depends on several factors. For example, the number of children and their age. In addition, your income and capital have an impact. Here, you can find more information about the child budget.
Childcare allowance (kinderopvangtoeslag)
When you need good childcare because you are working or studying, the costs you face are very high. Therefore, the childcare allowance can help you. Childcare allowance is compensation for costs you face with respect to the registered childcare. The amount you will receive depends on your income and the number of children that go to childcare. Here, you can find more information about the childcare allowance.
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.
We are happy to help!
Do you have any questions about the averaging request? Or do you need some help with applying for an allowance? The TaxSavers is happy to help you. Fill in our contact form or give us a call on +31 (0)20 – 2170120.