Unlocking Kindergeld: Essential Insights for Families in Germany

Kindergeld in Germany – The Basics

The Kindergeld in Germany (Child benefit) is paid regardless of the parent’s income. Under a system of tax relief for families, child benefit takes the form of an income tax refund, a tax-free allowance for children, and a tax-free allowance for child-care and vocational training.

Child benefit is paid throughout the year.

Child benefit is paid out by the family benefits department of local employment agencies. Germany Kindergeld

The law governing child benefits

The law on child benefit is set out in the Income Tax Act (Einkommensteuergesetz) and the Federal Child Benefit Act (Bundeskindergeldgesetz).

How much Kindergeld or child benefit do you receive in Germany?

In Kindergeld in Germany (Child benefit) is paid monthly as follows

• €250 per child

Tax-free allowance for children and tax-free allowance for child-care, child-raising, and vocational training

If the Kindergeld or child benefit payments do not reach the untaxable subsistence level for a child, a tax-free allowance for children (€4,368 a year) and a tax-free allowance for child-care, child-raising, and vocational training (€2,640 a year) are deducted from the parent’s taxable income. The tax relief from these allowances is decreased by the amount of child benefits already paid out.

Whether the total tax relief comes up to the amount required by the constitution is determined in the course of income tax assessment.

Who can claim child benefit (Kindergeld)?

• Anyone living in Germany and having a child in Germany can claim benefits.
• Foreign citizens require a valid permanent residence permit (Niederlassungserlaubnis) or a temporary purpose-specific residence permit (Aufenthaltstitel).
• Only one person can receive the money paid out on behalf of the child.
• If the parents are separated or divorced, child benefit is paid to the parent the child lives with. In the case of children who do not live with their parents, child benefit is usually paid to the person in whose household the children live, or who primarily supports them.

How and Where to Claim?

To claim child benefit, Kindergeld in Germany, you must apply for it. The family benefits department (Familienkasse) at your local Employment Agency (Agentur für Arbeit) will be pleased to help – or if you are in public service, your employer’s family benefits department.

The Federal Employment Agency (Bundesagentur für Arbeit) website (www.bundesagentur-fuer-arbeit.de) contains forms and addresses to the local Family benefits department (Familienkasse).