Child benefit or child allowance
What is better child benefit or child allowance for me and my child?
Especially with well-paid parents provides there is always the question of what is better for parents than child benefit or child allowance? The child benefit should always be applied for at the family fund, even if the child allowance should be cheaper with the tax.
Always apply for child benefit even if the child allowance is cheaper
- Child benefit or child allowance does not determine the application for child benefit. Please always submit the application to the responsible family fund.
- The tax office always carries out a cheap check. It is checked whether the child benefit or child allowance is better for you for tax purposes.
- The child allowance is usually cheaper for families with better earnings.
What does the tax office do when the child allowance is taken into account??
- If the child tax allowance is cheaper for income tax, the child benefit is added to the tax determined.
- Child benefit is also added if you have actually not applied for child benefit but are entitled to child benefit.
- Therefore you can All parents are advised to always apply for child benefit and under no circumstances rely on the cheaper child allowance.
What is better for me child benefit or child allowance?
- Before you submit your tax return, can you make a calculation with your tax program or via Elster. The calculation shows what is better for you.
- If the child benefit is tax-friendly, no child allowance will be deducted from the tax.
- If the child allowance has a better effect, child benefit is added to the tax.
Basically, the tax office proceeds as follows:
- The tax office first determines the tax without the child allowances. Then the child allowances are deducted.
- A tax is now calculated from the reduced income.
- If the difference between the two taxes is higher than the child benefit, the child allowance is applied.
- If the difference between the two taxes determined is less than the child benefit paid, the child benefit remains and the tax exemption is not taken into account at all.
- However, always apply for child benefit, here it does not matter whether child benefit or child allowance. You will be punished twice if you waive child benefit.
The review is purely a tax benefit and has no influence on the child benefit itself.
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