Child Allowance (Kindergeld)

To help defray costs of raising children, the German Government distributes child allowance to all German taxpayers with children who are qualified for the payments. These allowances are paid out to employees (parents of eligible children).

A German taxpayer can apply for child allowance if he or she has one or more:

• Biological child

• Adopted child

• Step child

• Grand child

• Foster child (without care relationship with own parents)

Any of the children listed in the application must live in the same household as the applicant. Normally a child can begin receiving child allowances at birth until the age of 18. In some cases, the allowance payout period can be extended:

• Typical child — From birth to 18 years of age

• Child engaged in education (for example, higher education or apprenticeship) — From birth to 25 years of age

• Child with disability — unlimited child allowance

Note:

Children with an income that exceeds the annual income ceiling through trust funds, employment, or monetary support from outside Germany are not eligible for child allowance.

The monthly allowance amount that each eligible child can collect is determined by the child's number (number 1 for the first child, 2 for the second, and so on). Each child receives a different amount as determined by legislation and the amounts can be defined in the Child Allowance Type page.

The system provides the Child Allowance Administration page where clerks can view and make changes to employees' child allowance data and eligibility. It displays personal profile data of employee's children that comes from the Dependent Information component and using the page, clerks can manage data that pertains to the child allowance program, for example, updating allowance amounts, adding new children to the program, changing children's eligibility to the program, and so on.