The “Kinderfreibetrag” translates to “child allowance” in English, referring to a fixed amount deducted from taxable income in Germany, thereby reducing the tax burden for parents or guardians.
What is “Kinderfreibetrag”?
The Kinderfreibetrag is a tax exemption granted to parents or guardians for each child, aimed at reducing their taxable income in Germany. This allowance acknowledges the financial responsibilities of raising children, covering expenses related to their upkeep, education, and training. It is an alternative to receiving KindergeldKindergeld is a financial support provided by the German government to families, translating literally to "child money" in English. What... More (child benefit), with the tax authorities automatically determining which option is more financially beneficial for the parents during the tax assessment process.
More information about “Kinderfreibetrag”
The Kinderfreibetrag is part of the German tax system’s family benefits, designed to support families by acknowledging the costs associated with raising children. It is calculated per child and can significantly impact the tax relief parents receive. The exact amount of the Kinderfreibetrag is subject to change, reflecting adjustments in living costs and tax policies. For 2024, the total Kinderfreibetrag is set at 9,312 Euros, which combines the basic allowance for the child’s existential needs and an additional allowance for care, education, or training needs.
Related to “Kinderfreibetrag”
Here are some additional terms that are related to Kinderfreibetrag:
- KindergeldKindergeld is a financial support provided by the German government to families, translating literally to "child money" in English. What... More: A monthly payment made to parents or guardians for each child, intended to help cover the basic costs of raising a child.
- Elterngeld: Parental allowance provided to parents to support them financially after the birth of a child, allowing them to take time off work for child care.
- Erziehungsgeld: A form of parental allowance that was available in Germany before being replaced by Elterngeld.
The Kinderfreibetrag is a crucial component of Germany’s family support system, offering tax relief to parents and guardians to help mitigate the costs of raising children.