Tax considerations for children in the change model

Income tax assistance Bavaria eV

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If parents separate and get divorced, childcare must be arranged. In the rather rare model of change, the parents of the child alternate continuously in a specific shift, eg weekly. The child then lives with the mother for a week and with the father the next week and so on. If both parents care for the child equally in terms of organization and time, this is referred to as a real model of change. But beware, this 50:50 model is hardly taken into account in tax law. The payroll tax assistance Bavaria explains what parents are aware of and what they must provide for a joint tax payment.

Only one gets tax class II

If the parents agree on the real model of change, there is no single parent who cares for the child. However, only one of the two parents can apply for tax class II, taking into account the annual tax deduction for single parents of EUR 4,008. The tax legislation does not allow for a division between the parents, nor does it allow both parents to use tax class II. After the divorce, the other must settle for the unfavorable tax class I.

Tax class II is given according to the law to the person whose household the child belongs to. In the changing model, the child usually belongs to both households, as it lives with both mother and father. Therefore, the parents can mutually regulate who receives the relief amount. If they do not decide on this, the parent to whom the child benefit is paid will receive the relief amount.

Both are entitled to child allowance, but it is only paid to one

As the Family Benefit Office does not pay child allowance to two recipients for organizational reasons, it is practically only one parent who receives the entire child allowance transferred to his or her account. It goes in principle to the person with whom the child lives. If the child lives alternately with both parents, the parents can decide which parent receives child benefit. In the probate model, the family court can stipulate a claim for compensation for the other parent. This parent is then required to give the other parent their share. This is often settled between the parents with other child payments, such as cash alimony to the other parent. Because in the real change model, both parents are entitled to child allowance due to the equal care provided.

Half child allowance for everyone

The child allowance and the supplement for childcare, upbringing and education are not paid, but reduce the taxable income as an operand in favorable cases. The two benefits amount to a total of 8,388 euros in 2022 and are included in half for both parents in the change model. This means that EUR 4,194 per month is deducted. parent in the taxable income if the benefit of the benefit exceeds the child allowance. In connection with the tax return, each parent is checked individually to see what is more advantageous for them. The more deserving parent thus gets greater tax breaks.

Child support cannot be deducted

In principle, child support could be deducted from the income tax as an extraordinary burden. The precondition, however, is that the child is not entitled to child allowance or child allowance. It does not matter who receives the child allowance. For minor children, alimony is virtually impossible as an extraordinary burden because there are always entitlements to child allowance or benefits. Therefore, neither parent can claim maintenance for tax purposes.

Parents should agree on childcare expenses

Two thirds of childcare costs up to a maximum of EUR 4,000 per child. child may be taxed as special expenses. The parent who has incurred the expenses and whose household the child belongs to can deduct them. This means that each parent can deduct half, ie up to 2,000 euros. It is important for the tax office’s recognition that the payment has been made as a transfer and can be proved. Cash payment is not taken into account.

If one parent has significantly higher expenses than the other and the latter has not used up the maximum amount, the parents can agree on a different percentage distribution and apply for this with the tax return. Tobias Gerauer, Lohi board member, recommends that both parents sign the contracts with the daycare centers so that both names are noted on the bill.

The tax legislation lags behind the family models

Parents need to agree on tax issues with each other, no matter how divided they may be. For only those who can regulate among themselves who receive child allowance and tax class II and how they distribute the childcare costs among themselves. For tax purposes, the real barter model has unfortunately only found limited legal considerations so far. The situation is different in social legislation, where the model of change has already found its way. For example, the child is taken into account for each parent who receives housing benefit, or the payment of the supplementary claim to single parents is distributed between both parents.

Press contact:

Contact for questions:
Nicole Janisch, Press Officer
Tel .: 09402 503147 / E-mail:
Werner-von-Siemens-Str. 5, 93128 Rainfall

Original content from: Lohnsteuerhilfe Bayern eV, broadcast by news aktuell

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