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Hartz 4: This is how much recipients can earn without deductions

2021-06-22T02:31:00.346Z


Hartz IV recipients can earn something extra. The income is counted towards the basic security, but allowances make additional income attractive.


Hartz IV recipients can earn something extra.

The income is counted towards the basic security, but allowances make additional income attractive.

Munich - recipients of Hartz IV can earn something extra.

It is imperative that you declare this income to the job center, otherwise there are serious consequences.

Because hiding income is a criminal offense that can be punished with a prison sentence of up to five years or a fine.  

For the job center, an income is basically any income that flows from the application.

This also includes income from employment and self-employment.

However, these are offset against the basic security benefit.

This means that the income leads to a reduction in the monthly payments from the job center.

Hartz IV and work: tax exemptions make starting a job attractive

However, the job center grants some allowances for income from non-self-employed and self-employed work, for the amount of which the gross income is decisive.

If a Hartz IV recipient earns up to 100 euros gross per month, nothing changes.

Because income in this amount is not counted towards the standard rate.

There is a gradation in terms of merit above this.

In this way, an additional 20 percent of the portion of gross income over 100 euros up to and including 1,000 euros remains free of credit.

In addition to the two amounts mentioned, ten percent of the gross wage over 1,000 euros up to the upper earnings limit is not taken into account.

For beneficiaries without a child, this amounts to a gross income of 1,200 euros; for beneficiaries who live in a community with at least one minor child, it is 1,500 euros.

The following examples illustrate the calculation.

Example 1:

A Hartz IV recipient has marginal employment (up to 450 euros) for which no taxes or social security contributions are usually due.

Basic tax credit

100 euros

plus 20% of the remaining 350 euros

70 euros

Together remain free of credit

170 euros

Example 2:

A Hartz IV recipient without a child generates gross income of EUR 1,900.

Assume that after deducting taxes and social security contributions, he has 1,500 euros left.

Basic tax credit

100 euros

from 100 to 1,000 euros = from 900 euros 20% remain free

180 euros

from 1,000 to 1,200 euros = 10% of 200 euros remain free

20 Euros

Together remain free of credit

300 Euro

If the Hartz IV recipient had a child, between 1,000 and 1,500 euros would be ten percent free, i.e. 50 euros.

A total of 330 euros would then be free of credit.

Hartz IV and income: not only wages are taken into account

However, as mentioned at the beginning, these allowances only apply to income from self-employed and non-self-employed activities.

The aim is to ensure that job seekers find their way back to work as quickly as possible.

The following income also counts as income for the job center.

  • Compensation benefits such as unemployment benefit, parental benefit or sickness benefit

  • Income from renting and leasing, agriculture and forestry

  • Maintenance benefits, child benefit

  • Capital and interest income

  • Income from stock ownership

  • Pensions of all kinds

  • One-time income (e.g. tax refunds, severance payments, inheritances)

  • Vocational training allowance, training allowance, BAföG

This income must also be reported to the job center.

No allowances, but taxes, social security contributions or income-related expenses are deducted from this before the income is offset against the Hartz IV benefits.

Job centers can also be very tough on benefit recipients.

A Hartz IV family who wanted their son to do homeschooling and bought a notebook experienced their blue miracle.  

List of rubric lists: © imageBROKER / Michael Weber via www.imago-images.de

Source: merkur

All news articles on 2021-06-22

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