Tax Relief Amount for Single-Parent Families

Tax Relief for Single Mothers and Fathers: Entlastungsbetrag für Alleinerziehende

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1. What is the “Entlastungsbetrag”?

The Entlastungsbetrag für Alleinerziehende is an annual tax allowance for single parents.
It is deducted from the total taxable income to compensate for the extra costs of running a household alone with one or more children (de.wikipedia.org).

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2. Amount of the relief

• 4,260 € per year (about 355 € per month) for a single parent with one child (finanztip.de).

• + 240 € per year for each additional child living in the household (haufe.de).

Example:
Single parent with two children:
4,260 € + 240 € = 4,500 € per year as tax-free allowance.

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3. Who is eligible?

You are generally entitled if:

• you are single, separated, divorced or widowed,

• no other adult partner shares your household,

• at least one child lives permanently with you,

• and you receive Child Benefit (Kindergeld) or the child tax allowance for this child (finanzamt.nrw.de, aktuell-verein.de).

Important:

• You must not form a full household community with another adult (e.g. a cohabiting partner).

• Exceptions apply, e.g. for adult children living with you, or those in military/civil service or education – they do not count as “another adult” for this rule.

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4. How does the allowance work in tax terms?

• The allowance is deducted from the sum of your income.

• This reduces your taxable income, which in turn lowers the actual income tax you have to pay (steuertipps.de).

• If eligibility changes during the year (e.g. marriage, partner moves in), the allowance is granted pro rata only for the months in which you actually qualified as a single parent.

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5. Automatic or on request – how is it applied?

a) Via Tax Class II (Steuerklasse II)

• If you are registered in tax class II, the basic allowance of 4,260 € is already automatically taken into account in your monthly payroll (finanzamt-bw.fv-bwl.de).

• It appears on your annual wage tax certificate and leads to a higher net salary each month.

b) Additional 240 € per further child

• For the second and each additional child, you must actively apply for the extra 240 €:

  • either by applying for an additional tax allowance (Freibetrag) with the tax office,

  • or by entering it in your annual tax return, usually in the “Anlage Kind” (child form) (haufe.de).

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6. Is the benefit paid monthly?

Two possibilities:

1. Via tax class II (Steuerklasse II):

   • The relief is reflected directly in your monthly payslip.

   • You effectively receive more net income each month (finanztip.de).

2. Via the annual tax return:

   • If tax class II is not applied or something is missing, you get the relief as a tax refund once a year, after your income tax return has been processed.

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7. How to apply in practice

1. Apply for tax class II

   • Contact your local tax office (Finanzamt) and request classification in tax class II, e.g. via ELSTER.

   • Your child must be officially registered at your address and you must be the single parent in the household.

2. Apply for extra allowance for further children

   • For the additional 240 € per child:

     • file an application for a Freibetrag with the tax office (via ELSTER / ELStAM), or

     • claim it in your income tax return (Anlage Kind).

3. Keep your data updated

   • Changes in family status, number of children or household composition should be reported promptly so that your ELStAM data and allowances can be adjusted.

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8. Practical tips

• Regularly check whether you are correctly assigned to tax class II.

• Inform the tax office when your income situation or number of children changes – you may be entitled to additional allowances.

• Remember: the Entlastungsbetrag first reduces your taxable income, not the tax itself; the tax saving is indirect.

• In case of marriage, partner moving in, or a child spending most of the time with the other parent, adjust your status early to avoid later back payments.

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Quick summary