What is the tax significance if my child gets married?

Since 2012, there has been a new legal situation regarding child benefit for married children. Now, children over 18 and under 25 who are undergoing vocational training, doing voluntary service, in a transitional period, or bridging a waiting period are taken into account for tax purposes, regardless of their income.

If the child is married and the spouse earns well, the family benefits offices have at least previously refused child benefit to the parents. Entitlement generally only exists until the child marries. From the date of marriage, it is no longer primarily the parents who are obliged to provide support, but the child's spouse. This was the view of the then "Child Benefit Service Instruction" (DA 31.2.2, BStBl. 2012 I p. 746).

However, the Federal Fiscal Court decided, to the great delight of countless parents, that the marriage of the child does not affect their entitlement to child benefit or tax allowances. Parents are entitled to child benefit for a married child who is in vocational training and under 25, regardless of the spouse's income or the child's training allowance. It is not necessary for a "typical maintenance situation" to exist, and a shortfall situation is no longer required (BFH ruling of 17.10.2013, III R 22/13, BStBl. 2014 II p. 257).

(2023): What is the tax significance if my child gets married?

What applies during the legal clerkship regarding child benefit and tax deduction?

Until now, we have been familiar with the terms initial training and second training - with the same conditions but different effects on child benefit and the deduction of work-related expenses:

(1) Child benefit for parents: During the initial training, child benefit and tax allowances are granted without restriction until the child reaches the age of 25. For second training, the benefits are only available if the child does not engage in gainful employment or works less than 20 hours per week alongside their studies, during waiting periods or transition periods, or if they are in a training employment relationship (§ 32 para. 4 sentence 2 EStG).

(2) Tax deduction for the child: The child can only deduct costs for initial training up to a limit of 6,000 Euro as special expenses if this takes place outside a training employment relationship (apprenticeship). For further education after the first professional qualification, expenses can be deducted as work-related expenses without limit (§ 4 para. 9, § 9 para. 6, § 10 para. 1 no. 7 EStG).

Completing a degree programme that provides the professional qualifications for a preparatory service or professional introduction is considered a vocational qualification. Therefore, for example, the first state examination in law generally marks the completion of initial vocational training.

According to previous legal regulations, the referendariat was considered second training, completed as part of a training employment relationship.

This means: During the referendariat, parents have been entitled to child benefit or tax allowances since 2012, because the second training is completed as part of a training employment relationship and the child's income is no longer relevant. The child could claim their expenses as work-related expenses.

However, since 2015, a referendariat that is undertaken in close temporal connection with preparation for the second state examination is still part of the initial training. This means: Parents are now entitled to child benefit without checking whether the referendariat is a training employment relationship or gainful employment. The child can continue to deduct their professional expenses as work-related expenses (BMF letter dated 8.2.2016, para. 18).

(2023): What applies during the legal clerkship regarding child benefit and tax deduction?

When am I still entitled to child benefit and the child allowance for a child over 18?

As long as your child is under 18, you will receive child benefit or the tax allowances (child allowance and allowance for care, education and training) in any case. For children over 18, the entitlement continues if the child is undergoing training and has not yet reached the maximum age of 25.

For a child who is unable to support themselves due to a disability, there is an entitlement to child benefit without age restriction. The condition is that the disability occurred before the age of 25.

Otherwise, child benefit for children over 18 is only available if they are in training or doing voluntary service. This can be vocational training, but also a degree or, for example, attending a college, vocational school or technical secondary school. If the child has to interrupt their training due to illness or maternity, the child benefit entitlement continues.

The same applies to a four-month transition period between two training phases, possibly longer if the child initially unsuccessfully seeks training. For children registered as unemployed, child benefit can be paid until their 21st birthday, even if they have a mini-job (up to 450 Euro; from 1.10.2022: 520 Euro).

The income test is waived for children over 18. This means that the income of children over 18 is completely irrelevant. The family benefits offices and tax offices no longer check what income and earnings the child has received and in what amount, but whether the vocational training is a first or second training. In the case of second training, it is then further checked whether and to what extent a job is held alongside.

Children during a second vocational training are only considered if they

• do not work or work no more than 20 hours per week,
• are completing the second training as part of a training employment relationship,
• only have a minor employment (mini-job) or only take on short-term employment (temporary job).

The Federal Central Tax Office (BZSt) has updated the "Child Benefit Service Instruction", which is used by the family benefits offices to check child benefit entitlement. The following rules apply:

• During a temporary illness, the child benefit entitlement remains as long as the training relationship legally exists and training measures are cancelled due to the illness.
• Illnesses are considered temporary if they generally do not last longer than six months.
• A medical certificate is required to prove the duration of the illness. In the case of longer illnesses or disabilities, consideration as a "disabled child" may be possible.
• Students can be considered during sick leave or exemption from attendance if a medical certificate is provided.
• Employment bans under the Maternity Protection Act and interruptions due to impermissible activities are not considered detrimental to the entitlement.
• Interruptions due to childcare, such as parental leave, are not considered.

Important: If your child is ill for a longer period, you should contact the family benefits office. You must provide credible evidence that the training can be continued and prove the expected end of the illness with a medical certificate.

(2023): When am I still entitled to child benefit and the child allowance for a child over 18?

Am I entitled to child benefit and tax allowance if my child is doing voluntary service?

When children aged 18 to 25 (up to their 25th birthday) participate in a voluntary social year, a voluntary ecological year, or certain other voluntary services, they continue to be considered for tax purposes.

Since 2012, this includes the Federal Voluntary Service (Bufdi) and other services abroad under Section 5 of the Federal Voluntary Service Act.

• The voluntary year under the Youth Voluntary Service Act can also be completed abroad. It is important that the sponsor is based in Germany.
• If a child participates in the European Action Programme "Youth in Action", they can receive child benefit for up to twelve months.
• A child can also be considered if they are doing an international youth voluntary service, a development policy voluntary service "weltwärts", or a "voluntary service for all generations".

Important: The Federal Fiscal Court has ruled that there is no entitlement to child benefit for a child in training after their 25th birthday if they have committed to a multi-year service in disaster control and were therefore exempted from military service (judgment of 19.10.2017, III R 8/17). The decision also affects other services performed alongside training in disaster control that resulted in exemption from military service (e.g. medical services at the German Red Cross, Johanniter-Unfall-Hilfe, or Malteser Hilfsdienst, technical services at the Technical Relief Organisation).

Current decision by the Federal Fiscal Court states that there is no entitlement to child benefit if a child cannot start their training due to illness and the

(2023): Am I entitled to child benefit and tax allowance if my child is doing voluntary service?

When is my adult child's vocational training or education recognised?

For children over 18 and under 25, you will continue to receive child benefit and tax allowances if your child is in vocational or school education. It is checked monthly whether your child is undergoing vocational training.

The vocational training can take place in Germany or abroad. It does not have to be a measure that is mandatory for a specific profession. It is more about acquiring knowledge and skills that are the basis for the desired profession.

Education includes attending a general school, a university of applied sciences or a university. Child benefit is also available during practical training, such as an apprenticeship or distance learning course. A doctorate following a degree, a traineeship, attending a master school, a language stay abroad or an internship are also considered vocational training. An Au pair stay abroad is considered vocational training if the accompanying language course comprises at least ten hours per week. “Work and Travel” programmes are usually not taken into account.

Practical training or university studies end when the examination result is announced in writing. In this month, you are entitled to child benefit for the last time. If your child drops out of training or takes up full-time employment after the exams but before the results are announced, the entitlement ends immediately.

Even if your child works full-time alongside their studies, you are entitled to child benefit if your child is seriously pursuing their degree. The entitlement also applies to children doing voluntary military service.

(2023): When is my adult child's vocational training or education recognised?

How are multiple training courses assessed as a single measure?

Many children undergo several training programmes before reaching their career goal, e.g. bank apprenticeship followed by a degree, craft apprenticeship followed by technical college or vocational school, craft apprenticeship and vocational school and university of applied sciences.

According to previous legal regulations, the first professional qualification (apprenticeship) was considered initial training and the subsequent degree was considered further training. Expenses for initial training are deductible as special expenses (if outside a training service relationship) and for further training as unlimited business expenses.

There is only an entitlement to child benefit for further training if no employment or employment of less than 20 hours per week is undertaken.

According to the new legal situation, further training after the completion of the first training can still be considered part of the initial training if it is evident from objective evidence that the child has not yet reached their desired career goal (so-called multi-stage training). The decisive factor is whether the further training is closely related to the non-academic training or initial degree and is carried out in close chronological proximity (BFH ruling of 15.4.2015, V R 27/14; BMF letter of 8.2.2016, BStBl. 2016 I p. 226).

Significance of multi-stage vocational training:

• For parents, it is advantageous if vocational training is assessed as initial training for as long as possible. This is because there is an entitlement to child benefit or tax allowances, regardless of whether the child works more than 20 hours per week during this time - including waiting time for a training place and transition periods (§ 32 para. 4 sentence 2 EStG).
• For the child, it is advantageous that after the first professional qualification, they can deduct their costs for further training as business expenses without limit from 2015 (§ 9 para. 6 EStG).

Even though the term "initial training" is significantly expanded for the purposes of child benefit and child allowance with "multi-stage training", the term "proper" initial training for the purposes of deducting business expenses remains unaffected. From 2015, initial training is considered to be training in an organised training programme lasting at least 12 months full-time and ending with an examination (§ 9 para. 6 sentence 2 EStG). During the subsequent further training, costs can be deducted in full as business expenses, and a loss can be carried forward to the following year.

The tax authorities have explicitly clarified that the child benefit legal precedent (from 2015) is to be applied and it is irrelevant whether the vocational training or degree meets the special requirements for initial training according to § 9 para. 6 EStG. Consequently, the alignment of "initial training" for child benefit and business expense deduction is broken (BMF letter of 8.2.2016, BStBl. 2016 I p. 226, para. 12d).

In 2014, the Federal Fiscal Court ruled that dual study vocational training constitutes a single initial training, even if the practical training (apprenticeship) ends earlier than the degree (Bachelor). Since this is initial training, it does not affect the child benefit entitlement if the child works more than 20 hours per week alongside their studies after completing their apprenticeship (BFH ruling of 3.7.2014, III R 52/13).

Hans completed an apprenticeship as an electrician in February 2012 and immediately applied for a place at the technical vocational school. Attending this school is a prerequisite for studying at a university of applied sciences. He aims to qualify as an electrical technician or engineer. He started attending the vocational school in August 2012.

In the interim period from March to July 2012, he worked full-time in his trained profession for the usual salary. This interim period is considered waiting time for a training place and is also eligible for child benefit. In October 2013, he began his studies at the university of applied sciences. The family benefits office refused child benefit for the waiting period due to employment.

The BFH sees this as "multi-stage vocational training" (apprenticeship - vocational school - university of applied sciences), which constitutes a single initial training. The first professional qualification from the apprenticeship does not yet constitute initial training. The further training measures are part of a single training programme. They are closely related to the first professional qualification and were also carried out within a close chronological context.

As if the matter were not already complicated enough:

The BFH has recently issued a series of rulings on further cases and clarified its position - but unfortunately also complicated it. Ultimately, it can be noted that child benefit is always denied if further studies or training are undertaken "only alongside work". Part-time jobs, however, are harmless (BFH rulings of 11.12.2018, III R 22/18, III R 2/18, III R 32/17, III R 47/17). The cases in which the family benefits office denied child benefit for further training included:

Case 1: The son first completed training as a bank clerk. He then worked full-time at the bank where he had trained. A few months after the end of the "initial training", the son began a two-year part-time further training course to become a banking specialist. The BFH has not yet made a final decision but has indicated that it will not grant child benefit because the training to become a banking specialist is likely to be considered part-time further training. The case was referred back to the lower court.

Case 2: The daughter first completed an apprenticeship as a bank clerk. Shortly after finishing her training, she began a part-time study programme at a vocational college in marketing. The state-recognised course leading to the qualification "State-certified business economist" was part-time. At the same time, the daughter was employed first at the bank and later at a car dealership. Her weekly working hours were 40 hours in each case. Here too, the BFH has not made a final decision. The lower court must examine whether the training relationship was subordinate to the employment relationship or vice versa. It is likely that child benefit will be lost.

Case 3: The son passed the exam in the training occupation of electrician in the field of energy and building technology and was taken on by his training company in the same month with a weekly working time of 38 hours. A few months later, the son attended the two-year evening course to become an industrial master electrician IHK. The case was referred back to the tax court, which must now examine whether the training or the job was the priority. There is much to suggest that the job was the priority and therefore there is no entitlement to child benefit.

Case 4: The daughter completed her training as a tax clerk. She was then taken on by her previous training company in full-time employment. Immediately after the exam, the daughter enrolled at the business school to obtain the qualification of State-certified business economist in business administration (focus on taxes). The part-time training lasted 3 1/2 years. In this case too, the tax court must decide again after the BFH referred the case back and must take into account its new principles. As in the three previous cases, it is not very likely that the parents will win the legal dispute.

In three further rulings, the cases concerned child benefit for daughters who each completed a part-time course to become an administrative specialist after training as an administrative clerk (BFH ruling of 20.2.2019, III R 42/18; BFH rulings of 10.4.2019, III R 51/18 and III R 33/18). In as many as six cases, the issue was child benefit for children who each took up part-time studies to become a banking specialist or a finance or economics degree after training as a bank clerk (BFH rulings of 21.3.2019, III R 12/18, III R 16/18, III R 17/18, III R 40/18 and III R 50/18; BFH ruling of 10.4.2019, III R 19/18). The tenth ruling concerned child benefit for a son who, after training as an industrial mechanic and master training, completed the advancement to "Certified Technical Business Administrator" (BFH ruling of 21.3.2019, III R 18/18).

All cases have been referred back to the lower courts for further fact-finding. However, the BFH has already indicated that child benefit will be denied if the children worked full-time alongside and the further training was not the priority over the job.

The Federal Fiscal Court has recently ruled that child benefit is no longer applicable if the child works more than 20 hours in the tax administration after completing training as a graduate tax officer and studies law in their free time (BFH ruling of 7.4.2022, III R 22/21).

Checklist:

The case law on child benefit for further studies or additional training has become extremely complicated. However, the following checklist can help determine whether child benefit is to be granted:

1. Is it training or a degree that builds on the first training? If yes: continue with 2. If no, it is effectively a different "field": Child benefit is only granted if no employment or employment of a maximum of 20 hours per week is undertaken alongside.

2. Is there a chronological connection between the two training phases? If yes: continue with 3. If no: Child benefit is only granted if no employment or employment of a maximum of 20 hours per week is undertaken alongside.

Note: If the son or daughter only registered for the next possible training phase (e.g. a master course) several months after passing the first training (e.g. journeyman's examination), this does not speak against linking the training phases (BFH 11.12.2018, III R 32/17).

3. Is the child already using the qualification they obtained after the first degree for a job they are now actually doing? If yes: There is much to suggest that the further training is no longer part of a "comprehensive training". Consequence: Child benefit for the further training will probably not be granted, as employment has taken priority. If no: The child benefit entitlement could be retained, as the further training is the priority. However, an overall assessment with point 4 must be made in both cases.

Examples: If, for example, a journeyman or clerk is taken on by their training company in the profession they have learned, or if a Bachelor takes up a position opened up by this degree, this may indicate that employment has taken priority. According to the BFH, such a situation suggests that the further training measures only serve professional development or higher qualification in an already started and practised profession.

If, on the other hand, the child takes up a job that would have been open to them even without the degree obtained (e.g. temporary work in gastronomy or retail) or if the employment is typically not a permanent job (e.g. a Bachelor working 19 hours as a research assistant during a subsequent Master's degree and giving 3 tutoring hours per week), this may indicate that vocational training is the priority.

4. Is the employment superior to the further training and is the training therefore carried out alongside work according to its external appearance? If yes: In the overall assessment with point 3, child benefit will probably be lost. If no: Child benefit is likely to be retained in the overall assessment with point 3, as the training is the priority. Employment of more than 20 hours per week speaks against the granting of child benefit. However: If the 20-hour limit is only slightly exceeded, this may be harmless and the vocational training may still be the priority. For vocational training to be the priority, it also depends on the time ratio between employment and training measures.

Examples: If, for example, a part-time job of regularly 22 hours per week is arranged to fit the respective training schedule, this is an indication of training being the priority. The same applies if the child works a maximum of 20 hours per week during the semester but exceeds the weekly hours during the semester break to reach an average working time of more than 20 hours per week.

If, on the other hand, the child works almost full-time and the training measures are only carried out in the evening and at weekends, this indicates that the further training measures are only carried out alongside employment. Finally, it may also be relevant whether and to what extent the employment and training measures are coordinated with each other beyond the time aspect.

Note: For the sake of good order, it should be noted here that the above also applies equally to the question of granting the child allowance.

(2023): How are multiple training courses assessed as a single measure?

Do I retain the entitlement to child benefit if my child cannot find a training place?

If the child does not take up the training place, the effects on the child benefit entitlement are as follows:

• Training efforts: The child is only considered for tax purposes if they are making serious efforts to obtain a training place and can provide evidence of these efforts.
• Training place not accepted: If the child is offered a training place but does not accept it for personal reasons, they are generally no longer considered "willing to train". In such cases, the entitlement to child benefit ends at the end of the acceptance period for the training place.
• Postponement of training start: A postponement of the start of training for school, study-related or operational reasons does not affect the assumption of willingness to train. A temporary illness of the child can also justify a postponement.
• Interruption of training due to illness: If the child cannot start training due to illness and the end of the illness is not foreseeable, there is generally no entitlement to child benefit.
• Registration as seeking employment or training: Children must register as seeking employment or training without delay during long waiting periods for a training place or interruptions in training, ideally shortly after the end or interruption of their training. A child seeking employment is considered until the age of 21, a child seeking a training place until the age of 25.
• Consideration during illness: If the child falls ill during their training, the child benefit entitlement usually remains as long as the training service relationship continues during the illness.
• Long-term illness and training: If the illness lasts longer than six months, it is decided on a case-by-case basis whether the training is expected to continue. If not, child benefit is no longer granted.
• Termination of training due to illness: If the training relationship is not only interrupted but terminated due to the child's illness and the illness is not temporary, the entitlement to child benefit ceases. In such cases, consideration as a "child seeking a training place" or "disabled child" may be possible, depending on the circumstances.
• Illness expected to last longer than six months: In such cases, consideration as a "disabled child" may be possible. Under certain conditions, child benefit can also be granted beyond the age of 25.

Certificates and evidence: In many cases, medical certificates or other evidence are required to maintain the child benefit entitlement.

Overall, the effects on the child benefit entitlement depend on various factors, including the reasons for not taking up the training and the duration of the illness. It is advisable to contact the family benefits office early in such cases and provide the necessary evidence to maintain the child benefit entitlement.

(2023): Do I retain the entitlement to child benefit if my child cannot find a training place?

How do gaps in education affect my entitlement to child benefit?

There may be up to four full calendar months between two training periods. During this time, you are entitled to child benefit, provided the child is under 25 years old. If they have not started training within this period, you must prove that they have been actively seeking a place, for example, through relevant application letters or rejections and, if applicable, registration at the job centre. In this case, child benefit and allowances can be granted for a longer period.

However, if the transition period lasts longer than four months, for example, if your child travels around the world for six months after finishing school, you will lose your entitlements from the start. The training gap must not exceed four full calendar months, so it must end by the month following the fourth month at the latest.

Typical training gaps include the transition period between school and university or the time before or after voluntary service or military service.

Example: Your daughter finishes school on 15 May. She should start training or university by October at the latest so that you, as parents, continue to receive child benefit or tax allowances during the transition period.

If your child has confirmation of a training place, child benefit can continue for more than four months. However, this does not apply to voluntary services, as clarified by the Federal Fiscal Court. For example, if your child starts voluntary military service six months after leaving school, child benefit will be stopped immediately. You can avoid this if the child registers as unemployed for the transition period. This works at least until their 21st birthday.

Current decision by the Federal Fiscal Court states that there is no entitlement to child benefit if a child cannot start their training due to illness and the end of the illness is not foreseeable (BFH ruling of 12.11.2020, III R 49/18).

Current decision by the Federal Fiscal Court also states that the termination of voluntary service due to illness leads to the loss of entitlement to child benefit (BFH ruling of 9.9.2020, III R 15/20).

(2023): How do gaps in education affect my entitlement to child benefit?

Am I entitled to child benefit if my child is unemployed?

Yes. You can still receive child benefit or child tax allowances if your child is unemployed. The payment ends in the month before the child's 21st birthday.

Registration as a jobseeker can be done not only at an employment agency in Germany. Children registered as jobseekers in another EU/EEA country or Switzerland are also considered.

For the child to be taken into account for tax purposes, it is not detrimental if they have a part-time job and the average annual earnings do not exceed 450 Euro or 520 Euro from 1.10.2022 per month. A short-term employment, limited to 3 months or 70 working days in the calendar year and not carried out on a professional basis, is also not detrimental. If the child works less than 15 hours per week, this is always not detrimental to the parents' entitlement to child benefit. The child is still considered unemployed.

(2023): Am I entitled to child benefit if my child is unemployed?

How do I secure the child benefit entitlement if my child is doing voluntary service?

Children aged 18 to 25 (up to their 25th birthday) are taken into account for tax purposes if they are doing a voluntary social year, a voluntary ecological year or certain other voluntary services. Since 2012, this includes in particular the Federal Voluntary Service (Bufdi) and other service abroad under section 5 of the Federal Voluntary Service Act.

The voluntary year under the Youth Voluntary Service Act can also be completed abroad. It is important that the sponsor is based in Germany.

If a child participates in the European action programme "Youth in Action", they can receive child benefit for up to twelve months.

A child can also be considered if they are doing an International Youth Voluntary Service, a development policy voluntary service "weltwärts" or a "Voluntary Service for All Generations".

The Federal Fiscal Court has recently ruled that there is no entitlement to child benefit for a child in training after their 25th birthday if they have committed to a multi-year service in disaster control and were therefore exempted from military service (judgment of 19.10.2017, III R 8/17). The decision also affects other services in disaster control performed alongside training, which resulted in exemption from military service (e.g. medical services with the German Red Cross, the Johanniter-Unfall-Hilfe or the Malteser Hilfsdienst, technical services with the Technical Relief Organisation).

(2023): How do I secure the child benefit entitlement if my child is doing voluntary service?

How long will I receive child benefit for my disabled child?

You will receive child benefit or tax allowances for an unlimited period for a disabled child if certain conditions are met:

The child is considered for tax purposes if they are unable to support themselves due to a physical, mental, or emotional disability. This means they cannot cover their living expenses and additional needs due to the disability from their own income and assets.

You can usually prove this with the disability card, which must show the "H" mark and a degree of disability of at least 50 percent. The fact that the child is not employed must be due to the disability and not a poor job market.

To claim the tax consideration for the child without an age limit, the disability must have occurred before the age of 25.

(2023): How long will I receive child benefit for my disabled child?

How do I secure the child benefit entitlement during my child's vocational training?

As long as your child is under 25 years old and in vocational training, you are entitled to child benefit or the child allowance. This can be an apprenticeship, but also a degree or, for example, attendance at a college, vocational school or technical college.

If the child has to interrupt their training due to illness or maternity, the entitlement to child benefit continues. The same applies to a four-month transition period between two training phases, possibly longer if the child initially unsuccessfully seeks training.

For children registered as unemployed, child benefit may be available until their 21st birthday, even if they have a mini-job.

The Federal Fiscal Court (BFH) confirmed vocational training in the following judgements:

Serious preparation for a non-pupil Abitur is considered vocational training - at least from the month of registration for the exam (BFH, 18.03.2009, Ref. III R 26/06)

Serious and sustained preparation for a resit exam is also part of vocational training, even if a formal training relationship no longer exists (BFH, 2.4.2009, Ref. III R 85/08).

Important: If training periods are interrupted for more than four months, children should definitely register as seeking work or training, and do so as soon as possible after the end or interruption of the respective training. In this case, the four-month period restriction does not apply. A child seeking work is considered until the age of 21, a child seeking training until the age of 25.

(2023): How do I secure the child benefit entitlement during my child's vocational training?

How and when are disabled children taken into account in the tax return?

A disabled child is taken into account for tax purposes if they are unable to support themselves due to a physical, mental, or emotional disability. It is also crucial that the disability occurred before the child's 25th birthday. In this case, they can be considered for tax purposes without any age limit. The tax consideration applies to the following points:

Disability allowance
Depending on the degree of disability, each disabled person is entitled to a disability allowance, which covers all ongoing, typical additional expenses directly related to the disability. This amount (between 384 Euro and 7.400 Euro) is also available to children. Parents can have the child's allowance transferred to them.

Care allowance
In addition to the disability allowance, you can claim the care allowance. In 2021, the care allowance for home care was doubled for care level 4 or 5, and a new allowance was introduced for care levels 2 and 3. The allowance amounts to:

• for care level 2: 600 Euro
• for care level 3: 1.100 Euro
• for care level 4 or 5 or helplessness: 1.800 Euro

Exceptional expenses
Costs arising from your child's disability, such as accommodation in a home or the costs of an outpatient care service, can be deducted as exceptional expenses in the tax return.

This is only worthwhile if the costs are significantly higher than the disability and care allowance, as a reasonable burden is deducted when claiming the costs as exceptional expenses, and you must also forgo the two allowances.

Child benefit, child allowance and BEA allowance
You can also receive child benefit for your disabled child beyond the age of 18 or 25 or use the child allowance and the allowance for care, education, or training needs (BEA allowance) if your child's disability occurred before the age of 25. At the same time, you are also entitled to further tax benefits linked to child benefit for disabled children, such as the child supplement for pension allowance.

Childcare costs
Parents can deduct up to two-thirds of their childcare costs, up to a maximum of 4.000 Euro per child, as special expenses. This also applies to non-disabled children up to the age of 14. For disabled children, you can also claim childcare costs beyond this age. The proof is usually the disability card, the notice from the pension office, the pension notice, or a medical report. The disability must have occurred before the age of 25.

(2023): How and when are disabled children taken into account in the tax return?

How do I secure child benefit if my child does not get a training place?

Recently, the Federal Fiscal Court ruled that there is no entitlement to child benefit if a child cannot start their training due to illness and the end of the illness is not foreseeable (BFH ruling of 12.11.2020, III R 49/18).

Important: If training periods are interrupted for more than four months, children should definitely register as job-seeking or looking for a training position, and do so as soon as possible after the end or interruption of the respective training. Then the child benefit will also be paid beyond the four-month interruption. A child looking for work is considered until the age of 21, a child looking for a training position until the age of 25.

(2023): How do I secure child benefit if my child does not get a training place?

What happens if the child does not start the training?

For children over 18 who cannot start or continue their education due to lack of a training place, parents are entitled to child benefit or a child allowance, as well as the associated child-related tax benefits (§ 32 para. 4 no. 2c EStG). In some cases, the entitlement to child benefit may also be lost.

However, the child is only considered for tax purposes if they are making a serious effort to find a training place and can prove their efforts with appropriate documents.

If a training or study place has been offered to the child for the following year, there is a continuous entitlement to child benefit for "waiting for a training place" until then, regardless of a four-month limit (according to § 32 para. 4 no. 2c EStG). But what if the child is offered a training or study place but does not accept it for personal reasons? Is the child still willing to undergo training?

The Federal Fiscal Court has also clarified the interesting question of whether parents still receive child benefit if the child does not accept an offered training or study place: If the child lets a training place lapse, they are generally no longer considered "willing to undergo training", so the child benefit ceases when the acceptance deadline passes (BFH ruling of 26.8.2014, XI R 14/12).

A postponement of the start of training does not affect the assumption of willingness to undergo training if the child has been offered a training place but can only start the training at the next possible date due to school, study, or company organisational reasons. A postponement due to the child's temporary illness is also accepted (BFH ruling of 28.5.2013, XI R 38/11).

Currently, the Federal Fiscal Court has ruled that there is no entitlement to child benefit if a child cannot start their training due to illness and the end of the illness is not foreseeable (BFH ruling of 12.11.2020, III R 49/18).

Important: Children must register as jobseekers or training place seekers if they are waiting for a training place for more than four months or if their training is interrupted, and they must do so as soon as possible after the end or interruption of the respective training. A child seeking employment is considered until the age of 21, a child seeking a training place until the age of 25.

If a child, for example, had to wait longer than four months due to corona before starting their voluntary social year, the parents lost their entitlement to child benefit, and this applies to the entire transition period, not just the period exceeding the four-month limit. The child should not have simply waited for the start of the voluntary social year but should have registered as a jobseeker or training place seeker. Only then would the child benefit entitlement (at least until the age of 21) have been maintained (ruling of 14.6.2022, 13 K 745/21 Kg).

(2023): What happens if the child does not start the training?

Consideration of children during a transition period

For children aged 18 to 25, there is an entitlement to child benefit for a transition period of up to four full calendar months between two training periods. The same applies to the period between a training period and voluntary service, such as a voluntary social or ecological year or the Federal Voluntary Service. This also applies under the new legal situation from 2015 for the transition period between training and voluntary military service and vice versa (§ 32 para. 4 no. 2b EStG).

If your child has confirmation of a training place, child benefit can continue for more than four months.

Otherwise, if the four-month period is exceeded, you can prevent the loss of child benefit by having the child register as unemployed for the transition period. This works at least until the child's 21st birthday.

Currently, the Federal Fiscal Court has ruled that the termination of voluntary service due to illness leads to the loss of the child benefit entitlement (BFH ruling of 9.9.2020, III R 15/20).

Important: If there are interruptions in training periods of more than four months, children should definitely register as seeking work or a training place, and do so as soon as possible after the end or interruption of the respective training. Then child benefit will also be paid beyond the four-month interruption. A child seeking work is considered until the age of 21, a child seeking a training place until the age of 25.

(2023): Consideration of children during a transition period

How do I secure the child benefit entitlement if my child does not find a job?

If your child is unemployed, you can continue to receive child benefit and tax allowances until their 21st birthday.

A part-time job does not affect your child benefit entitlement. However, the child must be registered as seeking employment with the employment agency. Regardless, you should, or must, also inform the family benefits office early if your child is looking for a training place.

As long as your child works no more than 15 hours per week, they can remain registered as seeking employment. A part-time job is also harmless for your child benefit entitlement if your child stays below the income limit for part-time workers in this job.

Currently, the Federal Fiscal Court has ruled that there is no entitlement to child benefit if a child cannot start their training due to illness and the end of the illness is not foreseeable (BFH ruling of 12.11.2020, III R 49/18).

Important: If there are interruptions in training periods of more than four months, children should definitely register as seeking employment or a training place, and as soon as possible after the end or interruption of the respective training. Then child benefit will also be paid beyond the four-month interruption. A child seeking employment is considered until the age of 21, a child seeking a training place until the age of 25.

(2023): How do I secure the child benefit entitlement if my child does not find a job?

Which voluntary services are eligible?

After completing their full-time schooling, children who participate in voluntary service are still considered in the family allowance system until they reach the age of 25, meaning parents are entitled to child benefit or tax allowances and other child-related tax benefits during this period.

Eligible voluntary services include:

• Voluntary social or ecological year,
• Federal Voluntary Service,
• European Voluntary Service "Erasmus+",
• International Youth Voluntary Service,
• Voluntary service "weltwärts",
• Voluntary service "kulturweit",
• Voluntary service "for all generations",
• Foreign voluntary service according to § 5 Federal Voluntary Service Act.

The new EU programme for education, youth and sport "Erasmus+" from 2014 includes the previous EU programmes for lifelong learning, university programmes and "Youth in Action". It also continues to include the European Voluntary Service. The programme is valid from 2014 to 2020.

Voluntary military service is not eligible according to § 58b Soldiers Act. However, according to new regulations from the tax authorities from 2015, the three-month basic training and subsequent service post training are considered vocational training, so there is entitlement to child benefit or tax allowances during this time. In principle, at least the first four months of military service can be considered without further proof; only the start of service must be credibly demonstrated. For longer service post training, the duration must be proven (A 14.2 sentence 2, DA-KG 2015).

The Federal Fiscal Court has recently ruled that there is no entitlement to child benefit for a child in training after reaching the age of 25 if they have committed to several years of service in disaster relief and were therefore exempted from military service (judgment of 19.10.2017, III R 8/17). The decision also affects other services performed alongside training in disaster relief, which resulted in exemption from military service (e.g. medical services at the German Red Cross, Johanniter-Unfall-Hilfe or Malteser Hilfsdienst, technical services at the Technical Relief Organisation).

Currently, the Federal Fiscal Court has ruled that parents can only receive child benefit for a child participating in voluntary service under the European Erasmus+ programme if the service is part of a project approved by a National Agency (BFH judgment of 1.7.2020, III R 51/19).

(2023): Which voluntary services are eligible?

Are the transition periods before and after voluntary service also eligible for tax benefits?

For children in school or vocational training or in voluntary service, parents receive child benefit or the tax-free child allowances and all related child-related tax benefits as long as the children are under 25 years old. Transition periods between two training phases and between a training phase and voluntary service, and vice versa, are also taken into account.

The transition period may last a maximum of four full calendar months. The next training phase must therefore begin at the latest in the fifth month after the end of the last phase. The four-month period includes four full calendar months and is not calculated to the exact day. If the child has to wait longer than four months before continuing their training or starting voluntary service, the parents lose the child benefit and the child allowance - even for the first four months of the transition period. Unfortunately, this also applies if the child has no influence on the start of service or is not at fault for exceeding the four-month period.

Until 2014, transition periods between a training phase and voluntary military service were not eligible. However, this changed in 2015, as parents now receive child benefit or tax allowances for a child who interrupts their training to perform voluntary military service, for a transition period of up to four months both before and after this service.

Current decision by the Federal Fiscal Court states that the termination of voluntary service due to illness leads to the loss of the child benefit entitlement (BFH ruling of 9.9.2020, III R 15/20).

Note: Even if the child is waiting to start their voluntary social year after leaving school, child benefit is paid for the transition period. BUT: The transition period may not exceed four months - this is stated in the law (§ 32 para. 4 sentence 1 no. 2b and d EStG). In recent years, the COVID-19 pandemic has meant that many children could not start their training or voluntary social year within four months of leaving school, but perhaps only after five or six months. The question then is whether § 32 para. 4 sentence 1 no. 2b and d EStG must still be interpreted literally or whether there can be an equitable regulation for this special case.

Current decision by the Münster Finance Court has rejected an equitable regulation. If the child had to wait longer than four months due to COVID-19 before starting their voluntary social year, the parents lost their child benefit entitlement, and this applies to the entire transition period, not just the period exceeding the four-month limit. The child should not have simply waited for the start of the voluntary social year but should have registered as seeking work or training. Only then would the child benefit entitlement (at least until the age of 21) have been maintained (ruling of 14.6.2022, 13 K 745/21 Kg).

(2023): Are the transition periods before and after voluntary service also eligible for tax benefits?

Is voluntary military service also eligible for tax relief?

Parents receive child benefit until the age of 25 or tax allowances for children over 18 if they are in vocational training or performing social service. Transition periods of up to four months between two training phases or between a training phase and voluntary service are also taken into account.

The following applies to voluntary military service:

• The three-month basic training and subsequent service post training during voluntary military service in accordance with Section 58b of the Military Act are considered vocational training. As a rule, at least the first four months of military service can be taken into account without further proof; only the start of service must be credibly demonstrated. For longer service post training, the duration must be proven (A 14.2 sentence 2, DA-KG 2015).
• During voluntary military service, training for a civilian occupation can also take place: This includes training as a telecommunications technician, paramedic, or driver with a class CE driving licence. Training as a driver is also considered vocational training if it takes place at the rank of private and includes prior general (military) basic training (BFH ruling of 3.7.2014, III R 53/13).
• The child can be taken into account even before starting voluntary military service - during the waiting period for a training place in accordance with Section 32 (4) No. 2c EStG. Proof is provided by the written application for voluntary military service (A 16.1 DA-KG 2015).
• The compulsory break between a training phase and voluntary military service in accordance with Section 58b of the Military Act has been considered a favourable transition period since 1.1.2015. A transition period can therefore be established both before the start of voluntary military service and after its end (Section 32 (4) No. 2b EStG).
• The extension period with child benefit entitlement only applies to children who started their service before 1.7.2011, and only until 2018 at the latest (Section 52 (40) sentence 10 EStG). For children who perform voluntary military service from 1.7.2011, there is no longer an extension period beyond the age of 25 or 21.

If the announced start of service is delayed, so that the child has to wait more than four months before starting voluntary military service, parents lose the child benefit and child allowance - even for the first four months of the transition period. Unfortunately, this also applies if the child has no influence on the start of service or is not at fault for exceeding the four-month period (BFH rulings of 22.12.2011, III R 5/07 and III R 41/07).

If your child benefit is cancelled because your child has to wait more than four months for their position, you can claim your maintenance payments to the child as extraordinary expenses in accordance with Section 33a (1) EStG. The deductible maximum maintenance amount in 2022 is 862 Euro per month.

Important: Children must register as job-seeking or looking for a training place if they have to wait more than four months for a training place or if their training is interrupted, and they must do so as soon as possible after the end or interruption of the respective training. A job-seeking child is considered until the age of 21, a child looking for a training place until the age of 25.

If a child, for example, had to wait longer than four months due to corona before starting their voluntary social year, the parents lost their child benefit entitlement, and this applies to the entire transition period, not just the period exceeding the four-month limit. The child should not have simply waited for the start of the voluntary social year but should have registered as job-seeking or looking for a training place. Only then would the child benefit entitlement (at least until the age of 21) have been maintained (ruling of 14.6.2022, 13 K 745/21 Kg).

(2023): Is voluntary military service also eligible for tax relief?

Is child benefit available during an extended transition period to university?

In some federal states, such as Rhineland-Palatinate, the Abitur is taken as early as March. However, university studies often begin in October or vocational training in September. Concerned parents are now asking whether child benefit will continue to be paid during this period.

The question of whether child benefit is also granted during a longer transition period to university can be answered as follows:

In principle, there is an entitlement to child benefit only if the transition period between the Abitur and university or vocational training does not exceed four full calendar months. This is regulated according to § 32 para. 4 no. 2b of the Income Tax Act (EStG). The transition period includes four full calendar months. For example, if the Abitur ends in March, the next training phase should begin by August at the latest to stay within this four-month period.

If the transition period is longer than four months, a different rule applies for the child benefit entitlement. In this case, the child is considered if they "cannot start or continue vocational training due to a lack of training place" (waiting period according to § 32 para. 4 no. 2c EStG). This means that the child applies for a study or training place immediately after the Abitur or already has an offer for a later date.

However, it is important to note that the start and end of studies cannot simply be determined by the date of the oral notification of exam results. According to a ruling by the Federal Fiscal Court (BFH) of 7.7.2021, university studies begin with the first training measures and end when the child has successfully completed the last required exams and all exam results have been made available in writing.

The transition periods between two training phases are only considered for child benefit purposes if they do not exceed four calendar months. If the transition period lasts five months or longer, the child benefit entitlement is interrupted until the next training phase actually begins.

Additionally, it is important that children register as job-seeking or training place-seeking without delay during longer waiting times for a training place or interruptions in training. A job-seeking child is considered until the age of 21, a training place-seeking child until the age of 25.

In the case of long-term illness of the child, the effects on the child benefit entitlement are as follows:

• If the training service relationship continues during the illness, the entitlement to child benefit usually remains.
• If the illness lasts longer than six months, it is decided on a case-by-case basis whether the training is expected to continue. If not, child benefit will no longer be granted.
• If the training relationship is not only interrupted but terminated due to the child's illness and the illness is not temporary, the entitlement to child benefit ceases. In such cases, consideration as a "training place-seeking child" or "disabled child" may be possible, depending on the circumstances.
• If the illness is expected to last longer than six months, consideration as a "disabled child" may be possible. Under certain conditions, child benefit can also be granted beyond the age of 25.

It is advisable to contact the family benefits office early in such cases and provide the necessary evidence to maintain the child benefit entitlement. This may include medical certificates or other evidence, as mentioned in the article.

Additionally, it should be noted that the application of the regulations is based on current rulings and regulations. Currently, the Federal Central Tax Office (BZSt) has revised the "Child Benefit Service Instruction", which the family benefits offices use as a guide when checking child benefit entitlement. The BZSt has ordered the application of the BFH rulings (BZSt of 26.5.2023, St II 2 - S 2280-DA/22/00001, BStBl 2023 I p. 818).

(2023): Is child benefit available during an extended transition period to university?

Is there an entitlement to child benefit during voluntary military service?

If children perform voluntary military service, parents are not entitled to child benefit or tax allowances during this period. Voluntary military service is therefore treated differently from the Federal Voluntary Service and the voluntary social or ecological year, during which parents receive child benefits.

The legislator assumed that parents do not incur any expenses for the child's maintenance during voluntary military service, unlike other voluntary services (see Federal Fiscal Court ruling of 3.7.2014, III R 53/13). However, one might think that, as with the former compulsory military and civilian service, the service period should be added to the child's 25th year if they are still in vocational training. Or to the 21st year if the child is unemployed.

Currently, the Münster Finance Court has ruled that for children who perform voluntary military service from 1.7.2011, an extension period beyond the age of 25 or 21 is no longer granted. The law (§ 52 para. 40 sentence 10 EStG) explicitly states that the extension period with child benefit entitlement only applies to children who started their service before 1.7.2011, and only until 2018 at the latest (Münster Finance Court of 27.10.2014, 5 K 2339/14 Kg).

(2023): Is there an entitlement to child benefit during voluntary military service?