Information sheet for single parents

Information sheet for single parents (as of January 2023)

I.General

Single parents cannot use the splitting tariff when determining their income tax. Only the basic tariff applies. For constitutional concerns, e.g. because of a possible violation of the principle of equality or the protection of marriage and family
the Federal Constitutional Court (BVerfG), most recently with judgment of September 18, 2018, BvR 221/17, opposed. To compensate for the higher tariff burden, single parents with at least one child receive a relief amount for single parents

(§ 24b Income Tax Act - EStG -) from the total income (Application letter from the Federal Ministry of Finance - BMF - dated November 23, 2022). The relief amount for single parents is granted outside of the family benefit compensation (in addition
for child benefit and child allowance). It serves to compensate the higher costs for the lifestyle and household management of single parents who share a household with at least one child. In addition, no other adult is allowed to contribute financially or actually in the household. From the 2023 assessment period, the relief amount for single parents is: EUR 4,260 (in 2022 = EUR 4,008). For the second and for each additional child to be taken into account, the relief amount increases by EUR 240 annually (so-called increase amount; Section 24b Para. 2 EStG). When deducting wage tax, the relief amount of EUR 4,260 through the electronic wage tax deduction features (tax class II) is taken into account. The increase amount of EUR 240 or the second and further children is not taken into account in the wage tax deduction process according to Section 24b Paragraph 2 Sentence 2 EStG. Either an application for an allowance must be made or the increase amount can be applied for within the income tax assessment.

II. Eligibility requirements

The relief amount for single parents is granted in accordance with Section 24b Paragraph 1 Sentence 1 EStG for person,
– who are single and

– whose household includes at least one child for whom an allowance is to be considered acc. § 32 Para. 6 EStG.

Single

Single is considered to be
– who does not meet the requirements for the application of the splitting procedure and
– does not form a household with another adult person. Excepted are under certain conditions your own adult children and persons in need of care (note the special measures in connection with the Ukraine war and the acceptance of refugees into one's own household). Sharing a household with a minor child is always harmless. Acc. Section 2 Paragraph 8 EStG the provisions of the splitting procedure also apply for life partners and civil partnerships.
– exceptionally a taxpayer who, as a spouse/life partner, is generally entitled to the splitting procedure but is entitled to the relief amount for single parents pro rata in the year of separation or of marriage/partnership, as long as he/she meets the other requirements (Implementation of case law of the Federal Finance Court - BFH - from the judgments of October 28th 2021, III R 17/20 and III R 57/20).

Household community

A household shared with another adult person requires a common budget. This means either a participation in the costs of the common budget or relief through actual help and cooperation. One household community is particularly common in marriage-like or civil partnership-like situations, communities or residential communities under joint management with another adult person. It doesn't require a compulsory registration of the other person in the apartment of the eligible person. For details and examples, please see the application letter from the BMF dated November 23, 2022.

A child's household membership

A child belongs to the household of the eligible person if
– it is registered in the apartment or
– lives permanently in the apartment or
– with appropriate consent, is temporarily, e.g. for training purposes, accommodated abroad.

Being part of a household also requires responsibility for material things (supply, maintenance) and intangible welfare (care, supervision) of the child.
Is a child approximately equally valued in both households of their single parents, parents can - regardless of who the child benefit is paid to - determine who should receive the relief amount. If no decision is made on this, it is attributed to the person who receives the child benefit.

Identification of the child

In order to consider a child, the identification number must be provided (§ 139b Tax Code - AO -) necessary.

III. Annual amount

The relief amount can only be claimed once in each assessment period. There is no division between single parent households possible.

The relief amount for single parents and the increase amount from the second child belonging to the household, are annual amounts that can only be granted for each calendar month in which the requirements are met.

(as of January 2023)