Save taxes: Child benefit and allowances

The family is entitled to 184 euros per month for the first and second child, 190 euros for the third and 215 euros for each additional child. Child benefit is paid until the child reaches the age of 25 if the child is still in education. The tax-free allowance per child is a total of 7,008 euros per year. It consists of a basic allowance (4,368 euros) and an allowance for care, education and training needs (2,640 euros). The allowances are weighed against the child benefit. When it comes to tax and family, you should seek support from either the tax office or a tax advisor.

Save taxes with the education allowance

Even if the offspring are already of age and have their own home, parents can claim the education allowance. This amounts to 924 euros per year - regardless of whether your offspring is studying or doing an apprenticeship. However, the prerequisite is that they are still entitled to child benefit.

Support is worthwhile

Even if there is no longer an entitlement to child benefit, for example because the adult children are doing voluntary military service or are over 25 and still studying, parents can still claim maintenance costs. The tax office recognizes up to 8,004 euros per year as an extraordinary burden. If parents take out health and long-term care insurance for their child, they can deduct the contributions (so-called basic cover) from their taxes.

How single parents can save taxes

If you are raising your child alone, you can get help from the state. The relief amount for single parents is 1,308 euros per year. Prerequisite: the single parent is entitled to child benefit and there is no other adult living in their household. Not the partner, but also not the child's grandmother, for example.

School fees

If the child attends a state-recognized private school, parents can deduct 30 percent of the school fees as special expenses. The maximum amount is 5,000 euros per year. However, the costs for accommodation, care and meals must be deducted from this amount.

Special case of twins

In the case of multiple births, the parental allowance is increased by 300 euros per month for the second and each additional child - this is the so-called multiple or twin bonus. According to the Federal Social Court, working parents receive double parental allowance for 14 months if they take parental leave during the same period (BSG, Ref.: B 10 EG 3/12 and B 10 EG 8/12). A tax advisor can calculate the taxes you may be able to save.

Spousal maintenance

Anyone who pays maintenance to their ex-spouse can currently deduct up to 13,085 euros per year as special expenses. However, the ex-partner must pay tax on the money received in return. If they do not wish to do so, the payments can alternatively be deducted as extraordinary expenses up to an amount of EUR 7,680 per year. Child maintenance paid, on the other hand, is generally irrelevant for tax purposes.

Tutoring after relocation

After a job-related relocation of the parents, up to 1,584 euros per child can be claimed as income-related expenses. Any tutoring costs are also taken into account on a pro rata basis. However, only if the tutoring was necessary because the child had problems at the new school.

Save taxes: How to deduct medical expenses

Expenses for medication, dentures, glasses or cures that are not covered by health insurance can be deducted as extraordinary expenses. The tax office takes into account costs that exceed a "reasonable burden". The limit decreases the more children there are in a family.

Pay attention to tax brackets to save taxes

If both partners earn the same amount, a combination of tax classes IV/IV makes sense. If one partner earns 60 percent or more of the family income, the III/V variant is more favorable. In this case, however, special expenses and business expenses should be claimed by the partner in tax class V.

Taxes & family: The patchwork effect

Parents in a patchwork family fare better if they add up the children living in the same household. As soon as there are more than two children, this is more favorable than if each partner only applies for child benefit for their own children. Child benefit increases from 184 euros to 190 euros for the third child and 215 euros for the fourth and each additional child. That's an extra 30 euros per month.

Childcare costs

Whether daycare, childminder or babysitter - up to the age of 14, two thirds of childcare costs are tax-deductible. Up to 4,000 euros per year can be deducted if the child has reached the age of three but not yet six. Before and after this age, childcare can be deducted as a so-called household-related service.