Taxes and benefits during a reintegration trajectory

A reintegration trajectory has direct consequences for your tax situation and your entitlement to benefits. Your income changes, your benefits provider sometimes changes too, and this has implications for what you need to report to the tax authorities and which benefits you continue to receive. Whether you are at home due to illness, working toward returning to your own employer, or looking for a new job outside your current organization, the tax rules apply to everyone. This article answers the most frequently asked questions about taxes and benefits during a reintegration trajectory.

What changes to your benefits when you are off sick at home?

When you are off sick at home and your income drops, your benefits may change. Benefits such as housing benefit, healthcare benefit, and childcare benefit are income-dependent. A lower income due to illness may mean you become entitled to higher benefits, or qualify for a benefit for the first time that you previously did not receive.

It is important to understand that benefits are calculated based on your assessment income — that is, your combined income over the entire year. During the first two years of illness, your employer is required in most cases to continue paying a portion of your salary, often 70% or more, depending on your collective labor agreement. This continued salary counts as income for benefit purposes.

Changes you can expect:

• Lower healthcare benefit, or conversely a higher benefit if your income drops
• Higher housing benefit in the event of a significant loss of income
• Changes to childcare benefit if you work less or not at all
• Possible recovery of overpaid benefits if you received too much in retrospect

Report any changes in income as quickly as possible through Mijn Toeslagen on the Tax Authority’s website. If you wait too long, you risk a substantial repayment demand at the end of the year.

How is your income taxed during a reintegration trajectory?

Your income during a reintegration trajectory is taxed in the same way as regular wages. Whether you receive continued salary from your employer or a benefit from the UWV, both forms of income fall under box 1 of income tax and are taxed at the standard rate.

During the first 104 weeks of illness, your employer is required to continue paying your salary. This salary is subject to payroll tax withholding in the usual way, just as it would be for a healthy employee. Your employer remits the tax and you receive your net salary. In that sense, little changes fiscally in how you are taxed, although the amount may be lower.

If you receive a supplement through an insurance policy or a benefit in addition to your continued salary, that too constitutes taxable income. All income sources combined determine your total tax liability for the year.

What is the difference between track 1 and track 2 for your tax situation?

For your tax situation, it makes little fundamental difference whether you are in track 1 or track 2, as long as your employment contract remains in force. In both cases, your employer continues to pay your salary, and that salary is taxed in the usual way through payroll tax withholding.

An important point to understand: track 2 begins while the employment contract still exists. It is not a consequence of dismissal, but a reintegration obligation during the continued payment of wages during illness. Around weeks 46 to 52, the employer, together with the occupational health physician, assesses whether track 2 must be initiated because a return to the employee’s own role is no longer feasible. During this period you still receive your salary from your current employer, and that salary remains taxable income in box 1.

The fiscal difference only arises after the employment contract ends. If you receive a WIA benefit or end up in unemployment benefit following the reintegration trajectory, the benefits provider changes, and with it the way tax is withheld. Read more about the options for track 2 reintegration if you want to understand how this process works in practice.

Do you need to declare a WIA or ZW benefit in your tax return?

Yes, both a WIA benefit and a Sickness Benefits Act (ZW) benefit must be declared in your tax return. Both benefits are taxable income and fall under box 1. The UWV withholds payroll tax from your benefit, but this does not mean your tax return is automatically correct.

The UWV sends an annual income statement each year showing how much benefit you received and how much payroll tax was withheld. You use this statement when filing your tax return. In many cases, the withheld payroll tax is a good approximation of what you actually owe, but if you had multiple sources of income in the same year, a discrepancy may arise.

Steps for a correct tax return when receiving a benefit:

1. Gather all annual income statements, both from your employer and from the UWV
2. Check whether the amounts match your own records
3. Enter all income sources in your tax return
4. Check whether you are entitled to tax credits such as the employment tax credit or the general tax credit
5. Submit your return on time, no later than May 1 of the year following the tax year

When do you need to notify the Tax Authority of changes?

You must report any changes to your income or personal situation to the Tax Authority as quickly as possible, preferably within four weeks of the change occurring. This applies in particular to changes that affect your benefits.

During a reintegration trajectory, several situations may arise that you are required to report:

• Your income drops because your employer is paying less than 100% of your salary
• You receive a ZW or WIA benefit instead of a salary
• You start working part-time and receive a combination of salary and benefit
• Your employment contract ends and your situation changes significantly
• Your household composition changes, for example due to a divorce

Report changes through Mijn Toeslagen or Mijn Belastingdienst. If you wait too long, you risk having to repay benefits you received in excess, or a tax surcharge for underpaid tax. Both are unpleasant and entirely avoidable by acting promptly.

Which costs during reintegration are tax-deductible?

The options for tax deduction of reintegration costs are limited for employees. Costs reimbursed by your employer are not deductible, but costs you bear yourself that are directly related to earning income may qualify under certain conditions.

Consider travel costs for job interviews or for attending reintegration activities that you pay for yourself. In 2026, the deduction of specific healthcare costs remains possible if you can demonstrate that you have higher healthcare costs due to illness and these exceed the threshold. Costs for guidance or training that you pay entirely out of pocket, without reimbursement from your employer or the UWV, may in some cases be claimed as education expenses or healthcare costs, depending on the nature of the costs.

What is often overlooked in practice:

• Travel costs for medical treatments related to your reintegration
• Additional costs for a prescribed diet or aids recommended by a doctor
• Costs for psychological counseling not fully covered by your health insurance

Always keep receipts and documentation of costs you wish to deduct. The Tax Authority may request proof, and without documentation the right to deduction is forfeited.

How UFIND helps with reintegration and the step toward new employment

A reintegration trajectory raises many questions — not only about taxes and benefits, but also about the path back to work. At UFIND, we guide employees and employers through this process with a personal and results-driven approach. Our specialists combine knowledge of the labor market with proven methodologies such as ACT, ensuring that an employee does not merely reintegrate on paper, but genuinely returns to work.

What we offer during a reintegration trajectory:

• Tailored programs designed around the employee’s unique situation
• Guidance from a single dedicated coach throughout the entire process
• Application of the ACT methodology to transform limiting thoughts into positive action
• More than 15 years of experience with complex and challenging situations
• Recruitment expertise that directly improves the chances of finding new employment

Would you like to know what we can do for your employee or for yourself? Get in touch and we will discuss the possibilities together.

Related Articles

• What if you have a burnout — how does reintegration work?
• How to make a career switch during track 2 reintegration
• What is the procedure for dismissal due to incapacity for work?
• Do I remain employed by my old employer during secondment?
• What is the role of the employee in Track 2?