(2024) Minimum standard of living: Are the child allowances unconstitutionally low?

The minimum subsistence level for children must be exempt from tax for constitutional reasons. This is done through the child allowance and the BEA allowance (for care, education and training needs). The tax office automatically checks whether these allowances or the child benefit paid during the year are more favourable.

The Lower Saxony Fiscal Court expressed serious doubts about the constitutionality of the child allowance for 2014, which led to a suspension of execution. The Federal Fiscal Court partially agreed (Lower Saxony FG of 16.2.2016, 7 V 237/15).

However, the Federal Constitutional Court declared the judicial submission by the Lower Saxony FG to be inadmissible (BVerfG, decision of 5.9.2024 - 2 BvL 3/17; published on 2.10.2024).