Child benefit or child allowance?
Experts explain who can benefit from what money - and why a tax return is definitely worthwhile for parents.
Child benefit: that's how much money there is for your child
Children cost money, no question about it.
The state supports families with child benefit *, which increased in January 2021.
So get parents for each
first and second child € 219
for the
third 225 euros
and for
each additional child 250 euros
per month tax-free
, as Stiftung Warentest portrays.
The
child benefit is transferred to the account on a monthly basis
.
Child benefit or child allowance: tax advantage for parents
Alternatively, there is the child allowance
. The tax office deducts the child allowance retrospectively in the
tax return
from the taxable annual income,
Test.de
describes
the background. “At the same time, the tax office adds child benefit to the tax burden so that parents don't benefit twice. The remaining difference is the actual savings. "
What should be considered with regard to child benefit?
Parents should know the deadlines: "Since 2018, parents can only apply for child benefit retrospectively for up to six months."
However, parents only have one tax advantage - "either child benefit or child allowance,
" says the explanation on the
test .de
.
The tax office automatically checks in the tax return what is more favorable for parents in terms of taxation.
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Child benefit: apply in good time
As described,
child benefit is only
granted
six months retrospectively after receipt of the application
.
"If you submit the application later, you are giving away money," explains the magazine Finanztest (issue 05/2021).
Tip: "In order to avoid unnecessary delays in processing by the family
benefits office
, wait until you have received the
11-digit tax identification number for your child
." It comes automatically by post shortly after the birth and is absolutely necessary for the application.
Apply for child benefit in any case
The experts have another important tip: You should
"always" apply for child benefit
, the article says, "
even if child allowances are cheaper for you due to your higher income
." First, you get the money monthly and not just afterwards the tax declaration.
Second, the tax authorities always offset the child benefit - “regardless of whether you actually received it”.
Also read
: Child bonus: Particularly low earners benefit - bonus payment from May
Money or tax exemption - which is cheaper?
As an alternative to child benefit, parents receive the above-mentioned exemptions for underage children, as Finanztest explains aimed at young parents.
“There is a
full child allowance
per child
.
For 2021 this will be
5,460 euros
(2,730 euros per parent).
In addition, there are
2,928 euros
(1,464 euros per parent)
for care and upbringing or training needs
. ”Unmarried parents each received half an allowance.
Who benefits from what?
For some parents, the allowances are "cheaper", explains the magazine Finanztest.
"In 2021, this will apply if married couples with one child have an income of more than 77,500 euros, single parents with half the tax allowances over 39,000 euros - after deduction of the deductible costs."
Also read:
Tax return 2020: What costs you shouldn't forget now
That is why a tax return for parents is worthwhile
The experts advise parents to submit a
tax return
- “this is the only way to get the tax exemptions into play,” as the magazine Finanztest describes.
The tax office only checks in the tax return whether child benefit plus child bonus (150 euros for 2021) or the tax exemptions are cheaper
. "If you save more taxes with these, child benefit and bonus will be deducted from your benefit." Only the rest have a tax-reducing effect, "so that you do not benefit twice". Higher earners would lose part or all of the bonus again. “Over the year, the automatically entered exemptions for wage tax only affect church tax and any solos,” the contribution also says.
(ahu) * Merkur.de is an offer from IPPEN.MEDIA.
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