Besteht für Ihr volljähriges Kind noch eine Ausbildung? Ein Anspruch auf den speziellen Ausbildungsfreibetrag ist gegeben. Es wird erläutert, wie hoch der Ausbildungsfreibetrag ist und wie er in Anspruch genommen werden kann.

A child of full age in education or school and financial support outside the parental home? In Germany, one can benefit from the educational allowance – an educational allowance of even EUR 1,200 annually. It should be examined whether the requirements are met and how the educational allowance can be considered in the tax return to effectively reduce the tax burden.

Educational Allowance in the Tax Return – How to Benefit from This Attractive Opportunity?

For an adult child still in education, there is likely an entitlement to the educational allowance. The German tax system offers the opportunity to deduct additional education costs. Since 2023, the educational allowance amounts to EUR 1,200 annually. This allows these amounts to be deducted from income, leading to lower taxes. It is not necessary to prove specific education costs, as it is a flat-rate, simplified calculation. The educational allowance applies to children who are in adult education, live outside the parental home, and whose education requires accommodation elsewhere. If the child studies in another city and continues to receive financial support, there is an entitlement to this deduction.

This deduction can also benefit individuals who cover their child’s education at a university or vocational school, including students who rent an apartment or dormitory. However, it should be noted that the educational allowance does not apply in the tax return if the child lives in the same house as the parents or other conditions are not met.

It should also be noted that for individuals with children abroad, the rules may slightly differ – the educational allowance may then be reduced depending on the child’s country of residence. Further details can be found in the tax regulations, which set specific rules for individuals with children studying abroad.

Adult Child Still in Education? What to Know About the Educational Allowance!

The educational allowance is indeed an excellent option for parents who financially support their adult children during their education. If the child has reached the age of 18 but is still attending school or university, there is an entitlement to the educational allowance. It is important that the child is registered as a learner and lives outside the parental home – e.g., rents an apartment in a university city. Regardless of whether the child is studying or attending a vocational school, the educational allowance applies under the same conditions. For parents, this means a real saving on the annual tax return.

And what if the child has already completed their studies? The allowance can still be used. If the child continues education in the form of a second degree or further vocational training, the allowance still applies – provided it is a recognized form of vocational training. Hobby courses, general or leisure courses do not qualify for this allowance. Here too, the allowance only applies if the second degree also requires accommodation outside the parental home. It is not necessary to prove additional expenses for the child’s maintenance during education – the educational allowance is set at a fixed amount. This is a really convenient solution that allows education expenses to be deducted from income without the need to collect invoices and other receipts.

The allowance is not calculated – it is a fixed amount of EUR 1,200 annually, always proportionally distributed to the months of fulfilling the conditions, but it is always worth checking if one qualifies for it.

How is the Educational Allowance Entered in the Tax Return?

The educational allowance offers a concrete financial advantage, and its use is not complicated. To utilize it, it is sufficient to mark the corresponding option in the tax return and indicate that all conditions are met. According to the regulations, the allowance is granted for each year in which the child meets the conditions – therefore, it is important to remember to include it in the annual tax returns.

However, it should be noted that the educational allowance in the tax return is part of the system of family-related tax benefits. It is a fixed amount and not dependent on the child’s income. In other words, the income of the adult child does not affect the possibility of claiming this allowance. However, it should be noted that the child’s income may be relevant in the context of other benefits or tax advantages – for example, in determining the entitlement to child benefits. The educational allowance is not exclusively intended for children in the first phase of education – children who have started a second school or other forms of learning can also use this deduction. Above all, this provides a great opportunity to relieve the household budget when the adult child needs additional financial support and all available allowances are to be fully utilized.

What Steps Are Necessary to Obtain the Educational Allowance?

The introduction of the educational allowance in the tax return is not complicated but requires some steps to ensure the process runs smoothly. First, it must be ensured that all conditions are met. The child must be of full age, in education, and living outside the parental home – otherwise, the allowance does not apply. The next step is to submit the correct tax form that considers the educational allowance. According to the regulations, it is sufficient to mark the corresponding section in the form EStG – Annex Child (ELSTER: Child → Further Information/Education) and indicate “externally accommodated”, as well as the months – on this basis, the tax office calculates the educational allowance.

It should be noted that if there are multiple children of student or education age, the educational allowance applies separately to each of them, provided all necessary conditions are met. Entering the educational allowance in the tax return form is necessary, otherwise, the possibility of deductibility is lost, meaning that higher taxes must be paid. However, there is no need to worry – all these steps are clearly defined in the tax regulations, and the procedure is relatively simple, especially when one is aware of the many advantages that result from its application.

Want to fully exploit the educational allowance? Opt for using Taxando – the tax return from Germany is completed quickly, efficiently, and advantageously online. The application guides through the Annex Child, monitors the limit of EUR 1,200, and helps correctly consider the educational allowance in the tax return.