SteuerGo FAQs

How to obtain the additional allowance for the second child!

Basic allowance for single parents

Single parents receive a relief amount of 4.260 Euro per year (§ 24b EStG). From the second child onwards, this amount increases by an additional 240 Euro per child.

How to apply for the relief amount

You can have the relief amount taken into account in two ways:

1. As part of the tax return
   Enter your details in the Children (Form Kind) section in SteuerGo.
2. Already during payroll deduction
   Apply for tax class II – the relief amount will then be taken into account monthly through the payroll.

Additional allowance from the second child: Extra application required

The increase of 240 Euro from the second child is not automatic. To have this taken into account during payroll deduction, you must:

• apply for a payroll tax allowance at the tax office
• this will be entered in the electronic payroll tax deduction features (ELStAM) (§ 39a Abs. 1 Nr. 4a EStG)

Duration and change of allowance

• The applied allowance is valid for two calendar years.
• If your circumstances change (e.g. marriage or moving in together), you must have the allowance adjusted.
• If the allowance was taken into account during payroll deduction, you must submit a tax return after the end of the year.

New developments in case law

The Federal Fiscal Court (BFH) has issued important rulings on the relief amount:

• In the year of marriage, the relief amount can be claimed on a pro rata basis, even with joint assessment
  (BFH, 28.10.2021, III R 57/20)
• In the year of separation, the relief amount is possible from the month of separation – provided individual assessment is chosen and no other adult person lives in the household
  (BFH, 28.10.2021, III R 17/20)

The Federal Ministry of Finance has declared the rulings to be generally applicable (BMF letter dated 23.11.2022, BStBl 2022 I p. 1634).

When does a tax-damaging household community exist?

The relief amount requires that no other adult person lives in the household. However, there are two exceptions:

1. It is your own child (biological, adopted, step, foster or grandchild) for whom there is a child benefit entitlement or child allowance.
2. The other adult person is registered in the household but cannot participate in household management due to care needs – neither actually nor financially.