Child Supplement 2025 and Tax Declaration

 The German state has a very well-developed social system. Among other things, retirees, unemployed persons, people who are sick or have had an accident, as well as people who have lost their jobs, can apply for financial support. There are also social benefits for parents in this country. One of these is the child allowance, which you will learn more about later in this article.

Child Allowance 2025 – what is it?

The child allowance is a German social benefit for parents with low income. It was created to support low-income families and combat the poverty of children under the age of twenty-five. It is paid as a supplement to child benefit, which is granted to employed persons in Germany. The child allowance is only granted for a period of six months (after which the application must be resubmitted) if all family members live in a common household. The child allowance is generally not granted if the child permanently lives in Poland and no parent is registered in Germany. However, if a parent lives and works in Germany, an individual assessment of entitlement can be conducted.

Child Allowance – who is eligible?

There are a number of requirements that must be met in order for the child allowance to be granted. What are they?

• The family must be receiving child benefit, as the two benefits are provided together.
• The parents’ combined income must be at least 1000 € gross (700 € gross for single parents).
• The child must not be able to support themselves – the annual income must not exceed 1,000 EUR net, whether from work or other sources.
• The child must not be married or in a registered partnership.
• Receiving the child allowance (and any possible housing benefit, i.e., a non-repayable state subsidy for housing costs) must ensure that the family has sufficient resources to support themselves without needing to apply for unemployment benefits.

In addition to the child allowance, families should also check whether they are eligible for further support. One of these is the child bonus – a one-time special payment that is paid in addition to child benefit and provides financial relief for families with children.

Tax-free child benefit – how much is it?

As of January 1, 2025, families with low income have the opportunity to receive up to 335 € in German child benefit. This applies to parents whose income is not, or only insufficiently, adequate for the family’s maintenance. In such situations, they will receive higher financial support in the form of child benefit from the beginning of 2025. Previously the maximum amount was 292 euros, now it is up to 297 euros  per month.

Tax refund for child benefit and application for the child allowance

To apply for child benefit, you must fill out an application form, which you can obtain from your family benefits office and the job centers. It is also possible to complete the form online. You can find it on the website of the family benefits office. Once you have filled out the form, visit the responsible branch of the family benefits office and submit your declaration there.

Applying for child allowance – what documents are needed?

An application form alone is not sufficient to apply for child allowance. Corresponding documents must be attached to the application so that the family benefits office can check whether you are entitled to the benefit. So what must you attach to your application?

• Proof of income for the last six months in the form of pay slips or other income evidence for you and your partner.
• Certificates of pensions and other benefits.
• Bank statements showing the amount of rent paid.
• The rental contract.
• Various types of bills (heating costs, additional costs, etc.).
• Transport tickets showing the costs for public transportation.
• A notice from the office regarding housing benefit (if you are entitled to and receive it).

Once you have submitted your application and all documents, you will need to wait for confirmation of whether you are entitled to child allowance. There is no fixed deadline by which the family benefits office must respond. Even if the process is prolonged, the money will be paid from the date of application in the case of a successful application and notonly once we have received a response.

Child benefit and taxes – what you need to know

Many people working in Germany are not fully aware of how to apply for social benefits and what support they can claim. Often, they only need to submit a tax return and fill out the corresponding documents. To avoid having to do this in person, online programs can be used. One such program is the simple and intuitive German tax return program Taxando.