Child benefit payments, child allowances
Child beneft payments, child allowances
The deductibility of expenses incurred by parents for their chil-
dren is subject to special rules. In order to maintain a minimum
livelihood for children, a system is in place that differentiates
between child beneft payments and child allowances.
Tax-exempt child benefts are paid upon filing an application with the
family welfare offce (Familienkasse). This consists of a monthly
amount of € 190 for the first and the second, € 196 for the third
and € 221 for the fourth and each additional child. The child
allowance, on the other hand, amounts to € 2,304 (€ 4,608
fling jointly) p.a. For each child (as a deduction against taxable
income), plus an additional allowance of € 1,320 (€ 2,640 jointly
fling) p.a. For each child for childcare, education, and training
expenses. In most cases, however, the child allowances are not
applied, because the payment of child benefts is more advanta-
geous for most taxpayers.
The tax offce automatically applies
the more favorable alternative. Taxpayers (German citizens or
citizens of an EU/EEA Member State) must be residents of Ger-
many in order to be entitled to child beneft payments or child
allowance.
Taxpayers who reside in non-member countries are
not eligible, unless certain requirements are met. As an addition-
al requirement, the children must have been accepted into the
benefciary’s household.
EU Forecast
euf:ba.18g:124/nws-01