After the child bonus, further financial relief is planned for families: The cabinet has initiated a series of measures that do not only affect child benefit.
The government wants families continue to relieve the corona crisis financially: next year is to child benefits to monthly 15 euro rise as ZDF.de reported. This is a central component of the so-called Family Relief Act, which the cabinet passed on July 29, 2020.
Child allowance will be increased
According to the draft law, families are also to be relieved of taxation: the child allowance is to be increased by more than 500 euros to a total of 8388 euros , reports the news portal. Federal Finance Minister Olaf Scholz (SPD) said the goal was to strengthen families and children. According to him, families should be relieved of a total of twelve billion euros annually. Tip : Parents can also claim childcare costs for tax purposes *.
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This is how much child benefit should be from January 1, 2021
An increase in child benefit by 25 euros had already been agreed in the coalition agreement in 2018, ZDF describes the project. After the increase of 10 euros in July 2019, another 15 euros should be added by January 1, 2021. This increases the child benefit for the first and second child to 219 euros per month, for the third child to 225 euros and from the fourth child to 250 euros. The child bonus of 300 euros was recently decided.
Also read: Child allowance: To which families is the money paid - and in what amount?
Higher basic allowance planned from 2021 - taxpayers should be relieved
All taxpayers should also be relieved of income tax, reports the ZDF. The basic tax-free allowance , on which no taxes have to be paid, will be increased from 9408 euros to 9696 euros for the coming year . The limit above which the 42 percent top tax rate is required increases from 57,052 euros to an annual income of 57,919 euros. A further increase in these income limits is planned for 2022, writes the portal. According to the report, the cabinet also decided on July 29 to increase the flat-rate allowances for the disabled and further tax relief for family carers.
However, all changes would first have to be approved by the Bundestag and Bundesrat. (ahu) * Merkur.de is part of the nationwide Ippen central editorial network
Source: ZDF.de
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Parents can look forward to the fact that the first installment of the child bonus will be paid out from September 2020.
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List of rubric lists: © Bernd Wüstneck / dpa