A tax allowance such as the child allowance reduces the tax burden already in the current taxation of wages, if it is recorded on the income tax card. As far as the child allowance is concerned, parents have to make a decision: Do they take advantage of this tax benefit or the monthly tax-free child benefit paid out.
In each individual case it must be checked in which constellation in the result more Net from Gross can be achieved.
Child allowance calculator
- With our child allowance calculator you can quickly and easily determine whether you should opt for the child allowance or child benefit. The calculator illustrates which option leads to the higher net wage overall.
More net for families through the child allowance
Families in Germany are supported in various ways, both fiscally and otherwise. Two essential measures of family support are on the one hand the child benefit and on the other hand the child allowance.
Both options can result in a higher net from gross. Both tie in with parenthood. However, only one variant can be chosen. The two support measures must not be combined.
- Parents may choose either the child benefit or the tax-free allowance. Both in the combination is not allowed.
This decision should not be made arbitrarily, as it is possible to calculate exactly which allowance is more favorable in the individual case in relation to one’s own income and the family constellation and leads to a higher income overall.
Child benefit or child allowance
A general recommendation can be given here only very cautiously.
According to an unwritten rule, incomes up to 30.000 euros per year and per individual are better served with child benefit.
- In this article on the topic of child allowance you will find more information with helpful calculation examples. We also show you how easy it is to claim the child allowance. Follow the link!
If you earn more than this, you will regularly have more net income from your gross income with the child allowance. In addition, the further life circumstances of the parents can play a role.
Gross net calculator help to choose
- Use our gross net calculator, with which they can very quickly determine how much salary you will actually be paid at the end of the month. The calculator offers the possibility to precisely calculate the net salary taking into account the child allowance and other details.
Individual references and sources
- Federal Ministry for Family Affairs, Women, Senior Citizens and Youth: tax-free allowances for children →
- Federal Ministry of Finance: *Tax relief for employees, families and single parents→
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