Berlin (dpa / tmn) - According to the plans of the federal government, families with children receive financial support. 300 euros per child are expected to be paid in three installments. The benefit is to be linked to child benefit, which then increases three times by EUR 100 per month.
The extra 300 euros per child will be offset against the child tax allowance for income tax. That means: Not all parents benefit equally from the additional benefit, explains Uwe Rauhöft from the Federal Association of Wage Tax Assistance Associations (BVL).
Parents with lower incomes can look forward to: "Unmarried parents benefit in full from the children's bonus up to an income of around EUR 33,900," Rauhöft calculated. “Married parents benefit up to an income limit of EUR 67,800.”
With higher incomes, allowances have a relief
If parents earn more, the child tax allowances through the income tax assessment usually provide more relief than the child benefit paid during the year. For 2020, however, these parents will mostly continue to receive child benefit including a child bonus.
"Only from an income of more than 85,900 euros will the allowances for 2020 have a tax-reducing effect beyond child benefit," says Rauhöft. For unmarried parents, this limit is 42,950 euros.
This means: "From this income, the child bonus initially paid will be offset against the 2020 income tax return," explains Rauhöft. "As a result, the proposed bonus only benefits parents with low and middle incomes."
Tax office checks automatically when filing a tax return
The background: The state pays child benefit on application until the children are 18 or until they have finished their education. At the same time, there are so-called child tax allowances for parents (2020: 7,812 euros per child). These are deducted from taxable income, which reduces the tax payable.
When filing the tax return, the tax office checks whether the parents have more of the child benefit or the allowance. The tax-free allowance pays off more for high-earners, who then receive more relief. The child benefit is collected again via the tax.