Are the transition periods before and after voluntary service also eligible for tax relief?
Yes, transitional periods can trigger child benefit and child-related tax allowances under certain conditions – provided the child is under 25 years old.
What counts as a transitional period?
Transitional periods are:
- between two training courses
- between training and voluntary service
- between voluntary service and training
The transitional period may last a maximum of four full calendar months. The subsequent period must begin no later than the fifth month. The period is calculated by the month, not by the day.
Important: If the transitional period lasts longer than four months – even without the child's fault – the child benefit entitlement is completely forfeited for this period, including retroactively for the first four months.
Voluntary military service
Since 2015, transitional periods before and after voluntary military service (according to § 58b of the Military Service Act) are also considered favourable – up to four months each. This applies if the child interrupts their training due to military service.
Current rulings and practical cases
1. Termination of voluntary service due to illness
Premature termination of voluntary service for health reasons leads to the loss of child benefit entitlement. (BFH ruling of 09.09.2020, III R 15/20)
2. Delays due to coronavirus
A child who could not start their voluntary social year within four months of leaving school – e.g. due to pandemic-related delays – loses the child benefit entitlement for the entire transitional period.
The Münster Finance Court rejected an equity regulation.
Note: In such cases, the child should have registered as seeking work or training to retain entitlement to child benefit (up to 21 years). (FG Münster, ruling of 14.06.2022, 13 K 745/21 Kg)
