Are there any advantages to having children?

Good to know: These are the tax advantages with children

Advantages with children of legal age

Up to the age of majority, there is an entitlement to child benefit without any special requirements. Afterwards, the reference can be continued, e.g. if the child starts vocational training. At the longest, the entitlement exists up to the 25th birthday.

For children between 18 and 25:

Training allowance
If your child is in an apprenticeship and no longer lives in the parents' household, it is possible, provided that they are still entitled to child benefit / child allowance, to claim a training allowance of 924 euros via the income tax return. This is an annual amount, for each month in which the requirements are not met, this amount is reduced by one twelfth.

For children over 25:

If your child continues to be trained for a job or studies after their 25th birthday, there is no longer any entitlement to child benefit or child allowance.

Instead, you can claim the costs that often continue to arise, e.g. for external accommodation, as maintenance expenses according to ยง33a Income Tax Act. The maximum amount is the basic tax allowance to be applied in the respective year for 2021, this is 9,744 euros (2020: 9,408 euros). However, if the actual maintenance is lower, the lower amount will be taken into account. If your child had their own income or earnings of more than 624 euros during the maintenance period, this will be reduced by 624 euros and the result of this will reduce the aforementioned maximum deduction amount. If you also take over the health insurance contributions (basic coverage) for your child during this period, the deductible amount is increased again by the sum of the contributions made.

In addition, it depends on what proportion of your available net income can be "sacrificed" for maintenance. The maintenance for your child must be in a reasonable proportion to your own income, so the tax office still determines the so-called victim limit. If this victim limit is below the maintenance actually paid, the burden is only taken into account for tax purposes in the amount of the victim limit, possibly reduced by the child's own income and earnings.