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The Childcare Allowance Is Here!

Right to a day care place for children at the age of two and three years the wage tax Bayern e.V. informed parents in Germany have since yesterday. Parents who take no care of space for their children born from the 1.8.2012, get the long controversial care money from first 100 euro monthly. From the 1.8.2014 this is expanded to 150 euros per month. The childcare allowance is paid regardless of the gainful employment of parents, so even if relatives, an au pair or a privately-funded day care mother take care of the child,”explains Gudrun Steinbach, Chairman of Lohi (wage control Bayern e.V.). Parents, choosing a retirement or education savings to invest in the childcare allowance, from the 1.8.2014, the State pays 15 euro in addition, but only directly to a contract. Childcare allowance is no wage-replacement benefits the new childcare allowance can usually only be claimed after the parents money.

The exception: Who are the parents money over two years pay off can be, can parents money and childcare allowance parallel. The latter is granted by life 15, monthly for a maximum 22 months, so to the end of the 36th month of the child. Like the parental allowance the childcare allowance is also tax and social tax free. Unlike the parents money is it not like a wage-replacement benefits”under the reservation of the progression. Obtaining parental allowance can the tax burden increase, the receipt of childcare allowance, not”, explains the Lohi tax expert.

In this context Steinbach indicates also that expectant parents through an early and thoughtful choice of tax classes can collect more parents money and make up for any tax disadvantages. For the parent who wants to stay at home during child care, most of the change in the lower tax bracket worth”so Gudrun Steinbach. For the calculation of the parental benefit are the twelve months prior to the birth of the child (the month of birth not included) be used. The parents claim money increases the net pay, increased in this period. A control class can be changed once per year. Childcare costs are deductible as special editions are deductible child care expenses as special editions, from birth up to the age of 14, regardless of whether the parents are gainfully employed or not. Deductible two-thirds of the proven expenses for kindergarten, care, childminder, babysitter, homework help are 4000 Euros per child and year etc but not exceeding. To claim child care expenses, taxpayers with the tax office must submit appropriate contracts or invoices”, so the tax expert. Cash payment is taboo. The costs would have to demonstrably be paid through bank transfer or direct debit. “Even though it sounds strange: who paid for a private childminder or an au pair, can still collect childcare allowance and also tax claim the cost of child care”, so Steinbach. Lohi wage control Bayern e.V. The wage tax Bayern e.V. with its headquarters in Munich was in 1966 as payroll tax relief organization founded and is active in more than 350 helplines in the entire Federal territory. There is the Association of one of the largest income tax help clubs in Germany with more than 525,000 members. No. 11 StBerG we show as part of a membership according to 4 workers, pensioners and retirees all possibilities to benefit from tax advantages. Press contact Gudrun Steinbach, Board Riesstrasse 17 80992 Munich 089 T 27813113 Jorg of Gabes, press officer Werner-von-Siemens-str. 5 93128 Regenstauf T 09402 503159 H 0170 5752945 E