Maintenance payments to adult children
July 29, 2021 | 25,00 EUR | answered by Steuerberater Knut Christiansen
If parents make regular maintenance payments to adult children (over 25 years old and employed) (rent, living expenses, insurance, etc.) and these payments have not been claimed as special expenses or maintenance by the parents, do the children still have to declare these payments as income in their income tax return? Or is it considered a gift that must be reported?
Good day and thank you for using ask-a-professional.com!
Regarding your question, I am happy to provide you with the following information.
Child support payments do not need to be taxed by the children. Therefore, there is no need to include them in the tax return. If the payments are for support because the children rely on them, then it is not considered a gift. However, if the amount exceeds what is needed for support, and the children could live comfortably without it, then these payments would be considered gifts. These would need to be reported to the tax office responsible for gift tax. However, there are exemptions of up to 400,000 EUR within 10 years for gifts from parents to children, so gift tax would likely not be triggered in this case.
I hope this answers your question, but feel free to ask any additional questions at no cost.
Please note that this forum cannot replace a detailed and personalized tax consultation, but is primarily meant to provide an initial tax assessment. By adding or omitting relevant information, the legal assessment of your issue could differ.
Best regards,
Knut Christiansen
Tax Advisor
