(2022)
What applies during the legal clerkship regarding child benefit and tax deduction?
Until now, we have been familiar with the terms initial training and second training - with the same conditions but different effects on child benefit and the deduction of work-related expenses:
(1) Child benefit for parents: During the initial training, child benefit and tax allowances are granted without restriction until the child reaches the age of 25. For second training, the benefits are only available if the child does not engage in employment or works less than 20 hours per week alongside their studies, during waiting periods or transition periods, or if they are in a training employment relationship (§ 32 para. 4 sentence 2 EStG).
(2) Tax deduction for the child: The child can only deduct costs for initial training up to a limit of 6,000 Euro as special expenses if this takes place outside a training employment relationship (apprenticeship). For further education after the first professional qualification, expenses are fully deductible as work-related expenses (§ 4 para. 9, § 9 para. 6, § 10 para. 1 no. 7 EStG).
The completion of a degree course that provides the professional qualifications for a preparatory service or professional introduction is considered a vocational qualification. Therefore, the first legal state examination generally marks the end of the initial vocational training.
According to previous legal regulations, the referendariat was considered second training, completed as part of a training employment relationship.
This means: During the referendariat, parents have been entitled to child benefit or tax allowances since 2012, because the second training is completed as part of a training employment relationship and the child's income is no longer relevant. The child could claim their expenses as work-related expenses.
However, since 2015, a referendariat that is started in close temporal connection with preparation for the second state examination is still part of the initial training. This means: Parents are now entitled to child benefit without checking whether the referendariat is a training employment relationship or employment. The child can continue to deduct their professional expenses as work-related expenses (BMF letter dated 8.2.2016, para. 18).
