The state has introduced various ways in which it would like to support families and especially their offspring.
The most popular option is child benefit because it is a direct monthly support that can be used accordingly.
Anyone who decides on this benefit and therefore against the child tax-free allowance must know the rules that apply as a result.
How much is the child benefit??
The following will apply nationwide from 2020 values:
For the first and second child, respectively 204 euros paid monthly. The state transfers for the third child 210 euros. If you have even more offspring, you get every month 235 euros for each additional child.
When does child benefit end??
Benefits are paid until the child is 18 years old. If the youngsters are in training, the deadline can be extended. The money then flows until the child is 25 years old.
What happens to child benefit in the transition periods?
Again and again there are so-called Transition times. For example, the offspring cannot usually start studying after they have completed their Abitur. In general, the money flows even in these times.
The condition for this, however, is that these transition times must not exceed a full four calendar months. If this is the case, the payments are stopped.
What tax effects does child benefit have??
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In the plant child the entitlement to the benefit must be noted in the income tax return. However, this is only the case because the monthly benefit is requested in this way.
This has no tax impact. This means that the services are not subject to the fee.
In addition, the so-called progression reservation does not apply in this case. While for example parental benefits increases the tax rate on taxable income, there is no such unpleasant consequence.
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When is child benefit no longer worth it??
As you know, you have the choice: either you take the monthly payments as support or you decide on the child allowance.
The two cannot go together. Low and normal earners drive better and better with the first variant. The child allowance is only worthwhile if you alone have a taxable income of 30,000 euros or as a couple 60,000 euros coming.
Individual evidence and sources
- Federal Ministry of Education and Research: BAföG→
- Federal Ministry of Finance: Leaflet on tax class selection→
- Federal Ministry of Finance: Child benefit leaflet→
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Disclaimer: Despite careful examination, we assume no liability for the completeness, accuracy or timeliness of the information presented here. No services are reserved that are reserved for professionals according to the StBerG and RBerG.
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