How does the parental allowance affect my tax return?
Parental allowance is basically tax-free! Nevertheless, it must be entered in the tax return, as it is subject to the so-called progression proviso. Parents are obliged to submit an income tax return for the years in which they have regularly received parental allowance.
The parental allowance is noted in the attachment N to the tax return in line 29 under “other wage and salary compensation”. Even if one does not have to pay taxes officially on receipt of the parents money, that is not at all so simple with the parents money. The term progression proviso means that the income in question, the parental allowance, is in itself tax-free, but increases the tax burden due to the progression proviso.
This means that the parental allowance is credited against other income, for example against the salary of the spouse. The consequence is that the spouse’s tax rate increases. This additional burden increases especially for low-income earners. It is worthwhile to do a thorough recalculation beforehand and to consult a tax consultant if necessary.
What is the parental benefit fund?
A parents money fund is a parents money place. The terms are used synonymously and represent the authority responsible for the parental allowance. That means that one applies for the parents money with the parents money cash box (parents money place).
What is the partnership bonus?
The partnership bonus is a bonus for parents who share the care of the child. If the parents share childcare for at least four months during which time they work between 25 and 30 hours a week, the family receives an additional four months of ElterngeldPlus. The requirements for the partnership bonus are therefore Both parents must work part-time for at least four months The weekly working hours of both parents must be between 25 and 30 hours per week The four months in which both parents work must be consecutive One parent must receive the ElterngeldPlus from the 15th month of the child’s life onwards The partnership bonus is particularly worthwhile for parents who earn roughly the same amount.
- Both parents must work part-time at the same time for a period of at least four months
- The weekly working time of both parents must be between 25 and 30 hours per week
- The four months in which both parents work must be in one piece
- A parent must refer starting from de 15. life month of the child continuously the parents money plus
All articles in this series:
- Parental allowance
- When do I get parental allowance?
- How can I calculate the parental allowance?
- What is meant by Elterngeld Plus?
- How does the parental allowance affect my tax return?
- What about the parental allowance for twins?
- Parental and maternity benefits – What is the difference?
- Is there parental benefit when I receive Hartz IV?
- What is the employer’s certificate for parental allowance?
- Does the parental allowance start earlier in the case of a premature birth?
- How do annual special payments affect the parental allowance?
