First: Who is considered a “tax child”?

You can receive tax benefits if the child is:

• your biological child,
• an adopted child,
• or a child under official foster care (Pflegekind).

Essential condition:
The child must be registered at your address and mainly supported by you.

What tax benefits apply to adoption or foster care?

1. Kindergeld – monthly child allowance

Paid until:

• age 18,
• or age 25 if in education or training.

Applies equally to adopted children and long-term foster children.

2. Kinderfreibetrag – child tax allowance

Useful for higher-income families when the tax benefit exceeds Kindergeld.
→ The tax office automatically chooses the better option.

3. Tax relief for single parents (Entlastungsbetrag)

• €4,260 per year for the first child
• +€240 for each additional child

Applies if you live alone with the child and no other adult partner is present.

4. Childcare cost deduction

You may deduct:

• up to one-third of childcare costs
• up to €4,000 per year per child under age 14

Covers:

• daycare, kindergarten
• nanny / childminder
• after-school care

5. Training allowance (Ausbildungsfreibetrag)

If the adopted or foster child studies or trains while living outside the home:

→ up to €1,200 per year deductible

What about adoption expenses?

Adoption-related costs:

• Not tax-deductible
• Considered private living expenses

Required documents

Key terms

Summary

• Adopted and foster children are treated the same as biological children for tax purposes.
• You receive either Kindergeld or Kinderfreibetrag.
• Childcare and education costs are deductible.
• Adoption procedure costs are not deductible.
• Foster children receive the same tax benefits if they live with you and you provide for them.

— Our editorial team strives for accuracy but errors may occur. Consult official authorities for binding information.