How to obtain the additional allowance for the second child!
Basic allowance for single parents
Single parents receive a relief amount of 4.260 Euro per year (§ 24b EStG). From the second child onwards, this amount increases by an additional 240 Euro per child.
How to apply for the relief amount
You can have the relief amount taken into account in two ways:
- As part of the tax return
Enter your details in the Children (Form Kind) section in Lohnsteuer kompakt.
- Already during payroll deduction
Apply for tax class II – the relief amount will then be taken into account monthly through the payroll.
Additional allowance from the second child: Extra application required
The increase of 240 Euro from the second child is not automatic. To have this taken into account during payroll deduction, you must:
- apply for a payroll tax allowance at the tax office
- this will be entered in the electronic payroll tax deduction features (ELStAM) (§ 39a Abs. 1 Nr. 4a EStG)
Duration and change of allowance
- The applied allowance is valid for two calendar years.
- If your circumstances change (e.g. marriage or moving in together), you must have the allowance adjusted.
- If the allowance was taken into account during payroll deduction, you must submit a tax return after the end of the year.
New developments in case law
The Federal Fiscal Court (BFH) has issued important rulings on the relief amount:
- In the year of marriage, the relief amount can be claimed on a pro rata basis, even with joint assessment
(BFH, 28.10.2021, III R 57/20)
- In the year of separation, the relief amount is possible from the month of separation – provided individual assessment is chosen and no other adult person lives in the household
(BFH, 28.10.2021, III R 17/20)
The Federal Ministry of Finance has declared the rulings to be generally applicable (BMF letter dated 23.11.2022, BStBl 2022 I p. 1634).
When does a tax-damaging household community exist?
The relief amount requires that no other adult person lives in the household. However, there are two exceptions:
- It is your own child (biological, adopted, step, foster or grandchild) for whom there is a child benefit entitlement or child allowance.
- The other adult person is registered in the household but cannot participate in household management due to care needs – neither actually nor financially.
How to obtain the additional allowance for the second child!
Do I receive the same amount of child benefit for all children?
In the past, if you had multiple children, you did not receive the same amount of child benefit for each child. However, since 2023, the rate has been standardised. The entitlement to child benefit is:
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 benefits offices of the Federal Employment Agency. Public sector employees or recipients of pension payments receive the money from their employers.
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 "Form Kind". Since 2023, the relief amount is 4,260 Euro. An additional amount of 240 Euro is added for each additional child.
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 must belong to your household for whom you receive child benefit or the child allowance. 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.
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 person 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".
The Federal Fiscal Court ruled in 2021 that jointly assessed spouses can also claim the relief amount for single parents in the year of marriage on a pro rata basis. Condition: The spouses did not live in a household community with another adult person before the marriage (BFH ruling of 28.10.2021, III R 57/20).
Furthermore, the Federal Fiscal Court ruled that in the year of separation the relief amount is to be granted on a pro rata basis for the months after the separation if individual assessment is chosen and no other adult person lives in the household (BFH ruling of 28.10.2021, III R 17/20).
The Federal Ministry of Finance currently orders that the rulings are to be applied generally (BMF letter of 23.11.2022, BStBl 2022 I p. 1634).
What is the tax relief for single parents?
What is the tax relief for single parents?
The tax relief for single parents amounts to 4,260 Euro. For the second and each additional child, the amount increases by 240 Euro each (§ 24b para. 2 sentence 3 EStG).
Reduction of the relief amount:
The relief amount and the increase amount are reduced by one twelfth per month in which the conditions are not met. The condition is that you receive child benefit, the child allowance and the BEA allowance for the child.
Who is considered a single parent?
You are considered a single parent if no other adult persons live in your household, except adult children for whom you receive child benefit (e.g. children in education).
Tip:
The relief amount can also be claimed if the child only has a secondary residence with you and, for example, is studying in another city.
Application:
The relief amount is granted retroactively for the previous year if you provide the relevant information in the Form Child.
Current case law:
- The Federal Fiscal Court (BFH) has ruled that jointly assessed spouses can claim the relief amount on a pro rata basis in the year of marriage, provided no other adult person lived in the household before the marriage (BFH ruling of 28.10.2021, III R 57/20).
- In the year of separation, the relief amount is granted for the months after the separation if individual assessment is chosen and no other adult person lives in the household (BFH ruling of 28.10.2021, III R 17/20).
The Federal Ministry of Finance has instructed that these rulings be applied generally (BMF letter of 23.11.2022, BStBl 2022 I p. 1634).
Tip from 2025:
From 2025, the pro rata relief amount in the year of separation can be applied for as an income tax allowance and taken into account directly by the employer during income tax deduction. In subsequent years, the relief amount will only be granted through tax class II (§ 39a para. 1 no. 9 EStG, introduced by the "Annual Tax Act 2024").
What is the tax relief for single parents?
What are the conditions for the tax relief?
You are eligible for the tax relief for single parents if the following conditions are met:
- At least one child for whom you receive child benefit or child allowance lives in your household.
- The child is registered at your address as their main or secondary residence.
- The child benefit is paid to you.
- You are single in the tax sense (not married or permanently separated).
- You do not live with another adult in a household, except:
- it is a child for whom you receive child benefit or child allowance, or
- the person is in need of care and does not contribute to the household.
The tax relief is only considered once a year regardless of the number of children. Exception: In the case of separated parents, each parent can claim the amount if one child lives with the father or mother and the child benefit is paid accordingly.
Current legal rulings
- In the year of separation, the tax relief can be claimed monthly from the month of separation if individual assessment is chosen and no other adult lives in the household (BFH ruling of 28.10.2021, III R 17/20).
- In the year of marriage, a pro rata claim is also possible if no other adult lived in the household before the marriage (BFH ruling of 28.10.2021, III R 57/20).
- The BMF letter of 23.11.2022 (BStBl 2022 I p. 1634) confirms the general application of these rulings.
Tip: Exceptions for adults in the household
The tax relief remains if:
- the adult is a child or grandchild for whom you receive child benefit or the child allowance,
- the person is in need of care and does not contribute to the household.
Note: The previous exception for taking in Ukrainian refugees (until 2024) has not been extended.
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.
Germans with a residence or habitual abode in Germany can apply for child benefit. The same applies to Germans living abroad who are either subject to unlimited 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.
When will I receive child benefit and allowances for my child?
