Building a house, having children and planting a tree - many often experience that this idyll often does not correspond to reality. It is especially hard for single parents who do not receive any support from the other parent and have to watch how they cope with everyday life.
For this reason, the state has to provide financial support, especially for single mothers and fathers. This happens within the scope of the discharge amount (Entlastungsbetrag). We clarify what that is, how high it turns out and what else to pay attention to.
Single Parent and the Discharge Amount (Entlastungsbetrag)
The state grants lone parents a relief in income tax (Einkommensteuer). Anyone who can receive child benefit (Kindergeld) or aids from the child allowance (Kinderfreibetrag) is entitled to this benefit. According to statistics, Germany has almost 2 million people raising their children alone.
There are 3 conditions that must be met to benefit from the relief amount:
- Mother or father is single
- The child lives in the same household
- There is a right to child benefit or child allowance
The relief amount (Entlastungsbetrag), which currently stands at € 1,908, is granted annually and deducted from all taxable income. This is a benefit that is guaranteed regardless of the child benefit or child allowance.
Basically, only one parent can apply for the relief amount (Entlastungsbetrag). This is usually the one who also receives the child benefit (Kindergeld). Also, it is essential that the child lives in the household of the mother or father, which also uses child benefit. This means that the child must be registered there as well. Another important criterion is that the single parent is truly single. If the parent-guardian finds a new partner, there is no longer a right to a discharge. Of course, only if another person moves into the household. Incidentally, this also applies if the newcomer is your best friend. There are no exceptions in this regard.
Note: The relief amount does not apply if the child is already 18 years old. The prerequisite for this is that the offspring is in training and has not yet moved out.
What Is The Discharge Amount (Entlastungsbetrag)?
Since 2015, the amount of tax relief has been € 1,908 per the calendar year. So that's 159 euros a month. Besides, there is a staggering in the amount of the relief amount. The more children, the more the tax burden diminishes.
This is how the qualification looks like:
- 1 child: 1,908 euros
- 2 children: 2,148 euros
- 3 children: 2,388 euros
- 4 children: 2,628 euros each additional child + 240 euros
Application for the Relief Amount (Entlastungsbetrag)
There are 2 ways to claim the relief amount. For one, financial support can be requested in the attachment child (Anlage Kind) of the income tax return. On the other hand, a change to tax class II (Steuerklasse II) may also make sense. This must also be requested from the tax office. In principle, single-parent workers are included in this tax code. The prerequisite is that the employee earns more than € 450 a month. Single-parent workers must assure the tax office that they can receive the relief amount. If the living conditions change, this must also be communicated to the tax office.