What do I need to consider if I have children as a cross-border commuter?
February 19, 2024 | 50,00 EUR | answered by Paula Bauer
Dear tax advisor,
My name is Christian Fischer and I work as a cross-border commuter in Switzerland. I am married and have two children who live in Germany. I am unsure about the tax and legal aspects I need to consider when it comes to my children. My main concern is to ensure that I do everything correctly and do not encounter any issues with the authorities.
Currently, I am not sure if I am eligible for child benefits in Germany and how this would affect my tax return in Switzerland. I am also thinking about how to best financially secure my children, especially in terms of potential social security benefits or inheritance taxes.
Could you please explain to me what tax and legal aspects I need to consider as a cross-border commuter with children? Are there any specific regulations that I can benefit from? How can I ensure that my children are best protected, both now and in the future?
Thank you in advance for your support and I look forward to your expert advice.
Best regards,
Christian Fischer
Dear Mr. Fischer,
Thank you for your inquiry and your trust in my expert advice as a tax consultant for cross-border commuters. I understand that as a cross-border commuter in Switzerland with children in Germany, there are many tax and legal aspects that need to be considered to ensure that everything runs smoothly and you do not encounter any problems with the authorities. I will now explain to you in detail what points you should consider.
First of all, regarding child benefit: As a cross-border commuter in Switzerland, you are generally entitled to child benefit in Germany as long as your children live there. You must apply to the family benefits office and submit the necessary documents. The child benefit will then be paid out monthly and can provide financial support for the upbringing of your children.
Regarding the tax return in Switzerland, you must declare the child benefit from Germany as income, making it taxable. However, you can usually have the taxes paid in Germany on the child benefit credited in Switzerland to avoid double taxation. It is important that you carefully keep all relevant documents and can present them when needed.
To ensure that your children are adequately protected, I recommend taking out a private accident and liability insurance for your children. These insurances provide protection in case of accidents or damages that your children may cause. Additionally, you can take out a life insurance policy for yourself to ensure that your children are financially provided for in case of your death.
In terms of potential social security benefits, you should check whether your children in Germany are covered by your health insurance or if they need their own insurance. In the case of inheritance taxes, I recommend creating a will to ensure that your assets are passed on to your children according to your wishes in the event of your death.
In summary, it is important for you as a cross-border commuter with children in Switzerland to carefully consider the tax and legal aspects to ensure that everything runs smoothly and your children are adequately protected. I am happy to assist you with any further questions and support you in optimizing your tax situation.
Best regards,
Paula Bauer, Tax Consultant
