Child Benefits for Unregistered Adult Child Looking for Work

Under certain conditions, parents of adult children are entitled to child benefits. In this case, the problem is when this child is looking for work and the Labor Office deletes this child from the list of persons searching vocational training. The Federal Tax Court gave some clarification on June 19, 2008 (re III R 66/05 and III R 68/05).

Child Benefits when Child Moves to other Parent

When parents live separated and the child moves to the other parent. Who is entitled to the child benefits? The parent entitled to custody or the one with whom the child is living? The Federal Tax Court decided this question with its judgment of June 25, 2009 (re III R 2/07).

Clever Change of Tax Class can Raise Parental Benefits

Following two recent decisions of the LSG NRW (December 12, 2008 L 13 EG 40/08 and January 16, 2009 L 13 EG 51/08), married couples are allowed to change into less favorite tax class in order to obtain more parental money. This article will give you hints how this in practice. This can pay out in an increased bottom line for the couple.

End of Child’s Professional Education for Child Benefits

In Germany, there is a universal child subsidy (Kindergeld), paid monthly, available to all parents of under-age children. And when a child is in formal education, the benefit can continue until age 27. But when has the child finished learning and who has to prove it? This question generally arises in circumstances of either underpayment or overpayment of the child benefit. The question was answered by FG Munich (re 9 K 4794/03, judgment of July 3, 2006).

Internship without Vocational Goal and Child Benefits

Are you still eligible for child benefits for your adult child when he or she participates in an internship that has no vocational goal (i.e. your child wanted to earn something on the side and declare this as an internship)? The FG Münster decided exactly that question on June 1, 2011 (re 11 K 4118/09 Kg).

No Child Benefits for Refugees Constitutional

Are not child benefits (Kindergeld) linked to raising a child and not to the legal status of an alien? Can it be that such a provision as §62 II no. 2 lit. c EStG is even constitutional? Well the Federal Tax Court confirmed it previous precedences to this question with its verdict of April 28, 2010 (re III R 1/08).

At the age of 18, Mirje moved from ex Yugoslavia in 2000 to wed her 16-year-old fiancée. She first had the status of toleration; meaning she was supposed to leave the country but this could not be enforced. As time passed, she gave birth to two children. Her third child, however, was granted German citizenship. Mirje's and her children's livelihood was secured by welfare. In 2005, Mirje was granted a residence permit pursuant to §25 V AufenthG on humanitarian grounds. This kind of permit only then makes Mirje eligible for child benefits when she has a legal status for at least three years and is legally working in Germany. In the same month, she applied for child benefits without success. Seeking legal recourse was also without success.

Mirje argued that it was unconstitutional because her exclusion as a foreigner constitutes an unequal treatment (art. 3 I GG). She, as an unmarried foreigner, does not receive child benefits while foreigners living with their German family member do get such benefits. The kind of residence permit may not determine whether or not a person is eligible for child benefits.

As previously ruled, the court acknowledges the lawgiver's wide scope of setting the rules for eligibility of child benefits. It is inside the lawmaker's discretion to link the benefits to the residential status of a foreigner. The court sees no reason to change its ruling case law.

It might be that the Federal Social Court sees constitutional issues in regards to "Erziehungsgeld (Benefits for Raising Children)" pursuant to §8 I 1 BErzGG such benefits are based on social law, or welfare, and not in tax law. This makes things different. The Federal Constitutional Court (BVerfGE 111, 160) has the point of view that loss of child benefits and needing supplementary welfare reduce the chances of aliens to improve their residential status. However that might be, since the new law of 2005 came into effect, foreigners are required to have their livelihood ensured in order to obtain or retain a residence permit (§5 I no. 1 AufenthG).

No Child Exemptions with Flat Income Taxation

In certain constellations, the employer can choose to pay a flat wage tax for his employee when paying for other income next to the employee's normal salary. Such income often covers the costs for the private use of the company's car. The BFH judgment of July 26, 2007, re VI R 48/03 (published on August 15, 2007) had to decide whether the child exemptions ("Kinderfreibetrag") were to be applied for such flat taxation or not.

Preparing for German High School as Vocational Education

Can Department for Child and Family Services deny child benefits for a student of a private school or one not enrolled in any school (so called "Nichtschüler") because the preparation for German high school graduation (Abitur) does not qualify as a vocational training. The judgment of the Bundesfinanzhof of March 18, 2009 (re III R 26/06) will tell us if this opinion has any merits.