Deductible Expenses for Parents
Parents can save a lot of money on their tax return by entering expenses on the “Child Form” (Anlage Kind) when filing. There are naturally other forms where they can enter deductible costs, but for parents, the child form is one of the most important ones.
Parents receive tax-free child benefits (Kindergeld) regardless of whether they have biological, foster, or adopted children. Parents with higher incomes can profit greatly from child allowances (Kinderfreibeträge) and claiming expenses for childcare and educational needs. Some other important themes for many parents can include the disability allowance (Behinderten-Pauschbetrag), relief amount for single parents (Entlastungsbetrag), and tuition fees (Schulgeld).
Since July 2019, child benefits amount to 204 euros per child for your first two children, an additional 210 euros for your third, and 235 euros for any additional child. Parents can apply for these benefits as long as their residence or life activities take place in Germany.
The goal of child allowances is to ensure parents have at least the minimum amount to secure their child’s existense by keeping their earnings tax-free up to a certain limit.
Education allowance (Ausbildungskosten)
Parents who are entitled to a child allowance with at least one child who is receiving an education can apply for an education allowance.
Disability allowance (Behinderten-Pauschbetrag)
The disability allowance covers expenses that can arise from a handicap. These expenses could include, among other things, costs for medication and therapy.
Single parents are granted 4,008 euros per year which is deducted from their taxable income.
Tuition fees (Schulgeld)
Some parents have to pay tuition fees if their child(ren) attends a private school.
Tutoring costs are tax deductible if they take place after a child has switched schools or if they have a medically certified language disability.