The Bundestag has decided to increase the tax-free child allowances (Kinderfreibeitrag) and the monthly child benefit (Kindergeld) by €15 in the coming year. For the second time in this legislative period, parents will receive more Kindergeld: After a plus of €10 last summer, there will be another €15 more per month from next year. According to this law, from January 2021 onward:
The tax-free child allowance will also be increased accordingly from currently €7812 to €8388. Families with a low income will also receive significantly more child allowance from next year. As the Federal Ministry of Family Affairs announced, the maximum amount will be increased to €205 per month as of January 1, 2021. Parents with a low income, which is only slightly above the Hartz IV (welfare) level, will receive a child supplement (Kinderzuschlag). The benefit is in addition to Kindergeld. Depending on need, a maximum of €185 monthly per child is currently paid - according to ministry information, this is currently paid for around 888,000 children in Germany. All taxpayers will also be financially relieved in the coming year: The basic tax-free allowance, on which one does not have to pay taxes, is raised, from €9408 to €9696. The minimum annual income, of which the 42% top tax rate is required, rises from €57,052 to €57,919. A further increase in these income limits is planned for 2022. In addition, single parents will be allowed to deduct higher maintenance payments from taxes in the future. Source: tagesschau.de & ZDF.de CategoriesAll Family Finance SELF DEVELOPMENT SHOPPING Archives October 2020 Related ArticlesComments are closed.
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