Tax relief for single parents

This text refers to the Steuererklärung 2021 online. You can find the version for the Steuererklärung 2025 at:
(2025): Tax relief for single parents

How to obtain an additional allowance for the second child!

The tax relief for single parents had been increased from 1.908 Euro. Additionally, 240 Euro is added for the second and each subsequent child in the household (§ 24b EStG).

The closure of nurseries and schools during the coronavirus pandemic posed significant challenges for all families, particularly for single mothers and fathers. From 2020, the relief amount will be increased from 1.908 Euro to 4.008 Euro, more than doubling it. The increase of 240 Euro remains unchanged (§ 24b Abs. 2 Satz 3 EStG, amended by the "Second Coronavirus Tax Assistance Act").

But what do you need to do?

The relief amount and the new increase are reduced by one twelfth for each full calendar month in which the conditions are not met. The relief amounts are applied for as part of the tax return in the "Anlage Kind". For employees, both amounts can already be taken into account during the year in the monthly wage tax deduction, leading to a lower deduction of income tax, solidarity surcharge, and church tax.

The (basic) relief amount is taken into account by simply applying for tax class II at the tax office. The relief amount is included in the income tax table. However, only one child is considered. When applying, the tax office requires a declaration of your status, which you submit using the form Declaration for the application for tax class II (PDF).
For the new increase of 240 Euro from the second child, you need to do a bit more: You must have a wage tax allowance entered in the electronic wage tax deduction features (ELStAM) at the tax office (§ 39a Abs. 1 Nr. 4a EStG). This allowance is distributed over the remaining months of the year from the month of application; it must be applied for by 30.11. of the relevant tax year at the latest. The employer accesses the database, takes the monthly allowance into account, and withholds less income tax from the wages accordingly. The usual application limit of 600 Euro does not apply for the application for the allowance (§ 39a Abs. 2 Satz 4 EStG). For the application to consider the increase, use the form Simplified application for income tax reduction.

Lohnsteuer kompakt

Since 2016, the applied wage tax allowance is valid for a period of two calendar years (§ 39a Abs. 1 Satz 3 EStG). If your circumstances change to your disadvantage within the two years, you are obliged to have the allowance changed. This may apply if you marry or move in with a partner. If you apply for a wage tax allowance, you are obliged to submit an income tax return after the end of the tax year (§ 46 Abs. 2 Nr. 4 EStG). If the relief and increase were not taken into account in the wage tax deduction, both amounts can also be applied for with the income tax return (in the "Anlage Kind").

(2021): How to obtain an additional allowance for the second child!

Do I receive the same amount of child benefit for all children?

If you have more than one child, you do not receive the same amount of child benefit for each child. The entitlement to child benefit is as follows:

Child benefit is paid for children up to the age of 18. The child's income is irrelevant.

The entitlement continues for children over 18 until their 25th birthday, as long as they are in education or doing voluntary service. Child benefit is paid by the family offices of the Federal Employment Agency. Public sector employees or pension recipients receive the money from their employers.

Tipp

A child for whom you do not receive child benefit yourself can be counted as a so-called Zählkind to increase the child benefit entitlement for your other children. For example: A couple has three children together, and the husband also has a child from a previous relationship. The child lives with their biological mother, who also receives child benefit.

If the second wife now names her husband as the beneficiary, his first child can be counted as a Zählkind. The couple will not receive child benefit for this child, but the other children will be counted as the second, third, and fourth child. Over the year, the family receives 372 Euro more in child benefit.

Note: The Federal Fiscal Court has ruled on so-called Zählkinder in the context of non-marital partnerships as follows: If the parents of a joint child live together in a non-marital partnership and two older children from another relationship of one parent are also living in their household, the other parent does not receive the increased child benefit amount for a third child according to § 66 (1) EStG for the joint child (BFH ruling of 25.4.2018, III R 24/17).

(2021): Do I receive the same amount of child benefit for all children?

What is the tax relief for single parents?

If you are a single parent, you can apply for a tax relief amount in the "Anlage Kind". Since 2015, this relief amount has been 1,908 Euro. Additionally, there was an extra 240 Euro for the second and each subsequent child. Single parents with 2 children were thus relieved by 2,148 Euro.

However: The closure of nurseries and schools during the COVID-19 pandemic posed significant challenges for all families. Single mothers and fathers were particularly affected. Since 2020, the relief amount has been increased from 1,908 Euro to 4,008 Euro, more than doubling. The increase of 240 Euro remains unchanged (§ 24b Abs. 2 Satz 3 EStG, amended by the "Second Corona Tax Assistance Act").

For each full calendar month in which the deduction conditions are not met, the relief amount is reduced by one twelfth. Condition: at least one minor or adult child for whom you receive child benefit or the child tax allowance must belong to your household. It does not have to be a biological child; the relief amount is also available for an adopted, foster, step, or grandchild. The child must be registered at your address. If the child is registered with several people, the parent who is entitled to child benefit receives the relief amount. The child's tax identification number must be provided for the child belonging to the household.

Important: No other adult persons may belong to your household. Adult children for whom you receive child benefit are an exception. This also applies to children who are in vocational training, waiting for a training place, or doing voluntary service. The relief amount is also not at risk if you live with an adult in need of care.

Living with adults is harmless for the relief amount if there is no household community, but merely a shared flat with separate finances and separate management. A key feature of a household community is "joint management".

Tip

If you marry, the relief amount is cancelled. This applies even if you are not yet living with your partner. However, if you share a flat with an adult person without being married, the tax office assumes a household community. A new partner should not rush to re-register.

(2021): What is the tax relief for single parents?

What is the relief amount?

Single parents can claim a tax relief. Since 2015, this amount was 1,908 Euro. For the second and each additional child, the relief increases by 240 Euro each.

Since 2020, the relief has been increased from 1,908 Euro to 4,008 Euro, more than doubling. For the second and each additional child, the relief increases by 240 Euro each (§ 24b Abs. 2 Satz 3 EStG).

The relief and the new increase are reduced by one twelfth for each full calendar month in which the conditions are not met. The condition for granting is that you are entitled to child benefit or the child allowance and BEA allowance for the child.

You are considered a single parent only if no other adult persons live in your household, except possibly adult children for whom you receive child benefit, e.g. children in education.

Tip

You can also claim the relief if the child only has their secondary residence in your home and, for example, is studying in another city.

The tax relief for single parents is granted retroactively for the past year if the relevant information is provided in the child form.

(2021): What is the relief amount?

What are the conditions for the tax relief?

You are entitled to the tax relief if at least one minor or adult child lives in your household for whom you receive child benefit or the child allowance. The tax office assumes a child belongs to the household if they are registered at your address with their main or secondary residence.

If the child is registered with several people, the relief is granted to the person receiving the child benefit.

The allowance is only considered once, even if you have several children. Exception: If you are separated from your partner, both parties can receive the relief if at least one child lives with the father or mother and the child benefit is paid to them.

Single means in the context of the relief that you do not meet the conditions for the application of the splitting tariff.

The conditions for the splitting tariff are not met if the parents were not married or were still married in the tax year but have been permanently separated since the previous year. Parents who did not live separately for even one day in the year are not entitled to the relief. You benefit from the relief for the first time in the year following the separation.

Furthermore, as a single parent, you must not live in a household with another adult, unless they are children for whom you receive child benefit. If you live with another adult, the tax office assumes that they share the household expenses with you. This generally applies if you live with a partner, but also for parents, grandparents, or siblings.

In the case of shared accommodation without joint household management, the entitlement to the relief remains. However, you must be able to prove that you manage your finances separately. An exception is also possible if the other adult is almost penniless and cannot contribute to the household. However, this does not apply to partners.

(2021): What are the conditions for the tax relief?

When will I receive child benefit and allowances for my child?

To receive child benefit, the child allowance or the allowance for childcare, education or training needs (BEA), the same conditions as for child benefit must be met. There are two different legal bases for entitlement to child benefit:

Taxpayers are entitled to child benefit under the Income Tax Act (§ 31 f. and § 62 ff. EStG).
Persons who are not or only partially subject to tax are entitled under the Federal Child Benefit Act.

Anyone who is German and has their residence or usual place of abode in Germany can apply for child benefit. The same applies to Germans living abroad who are either fully liable to income tax in Germany or are treated as such. Foreigners living in Germany can apply for child benefit if they have a permanent residence permit.

Important: Child benefit that has been approved is paid retroactively only for the last six months before the beginning of the month in which the application for child benefit was received. Therefore, even if child benefit is approved retroactively for a whole year, it is actually only paid for the last six months.

(2021): When will I receive child benefit and allowances for my child?

Field help

Do you have children?

Select Yes if you have underage children.

In order for an adult child to be included in your household, a child does not necessarily have to live permanently in your household. It is rather important that there is a family home that is used by the child and that you take responsibility for the welfare of the child. There must also be a family bond between you and the child.

This means that a disabled child living in a nursing home is also part of your household if you bring this child home from time to time. This also applies to children attending educational institutions (studies, professional training, etc.) or children who perform federal volunteer service, live abroad and regularly return to their parents' home. The child must stay in your home for at least six weeks a year.

Tip: If you are not entitled to child benefit or child tax allowances for an adult child, you can claim your maintenance payments for the child as exceptional costs (2021: 812 Euro per month) in the relevant months.

The child the child was registered in my apartment

Indicate here whether your child has been registered in your apartment all year round.

If your child belonged to your household in 2021 or was registered in the common apartment during the year, you can claim childcare costs or apply for tax relief for single parents.

Notes:
The child is also considered to be a member of your household if it was temporarily housed away from home or if the taxpayer lives with his or her child, for example, with parents or grandparents.

A child can also belong to several households. This is the case, for example, if the parents live separately and the child lives alternately with both parents. Therefore, the choice of household affiliation to the households of both parents should be made even if the parents do not have a common household and the child is registered at both parents.

This information is necessary for a correct calculation of the relief amount for single parents by Lohnsteuer kompakt.

I have received child allowance for the child the child

Specify the period in which child benefit was paid to you for your child.

Important: This information is necessary for a correct calculation of the tax relief amount for single parents by Lohnsteuer kompakt.

Was there a shared apartment with at least one other adult?

For months during which you lived in a shared household with another person of full age, you do not receive tax relief.

You still receive tax relief if an adult child (adoptive, foster, stepchild or grandchild) lives in your household and you are entitled to child benefit or the tax-free child allowance for this child. This is the case when the child

is still undergoing vocational training,
waiting for a training place,
is performing a voluntary social or ecological year or
is handicapped.

This is also the case if you live together with a person in need of care who is actually not able to participate in the household and who is not a partner in a non-marital relationship or in a registered civil partnership, for example, the mother in need of care or the disabled brother.

The allowance is also granted if you live together with a person who is not financially able to take part in the household and who is not a partner in a non-marital relationship or in a registered civil partnership, for example, the mother or father with only a low pension.