Ask a tax advisor on the topic of Other questions to tax advisors

1/2 child on tax card

March 2, 2011 | 35,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Hello, good day,

Man 61 years old, tax class I, annual gross income from non-self-employed work 60,000,- € / from self-employed work 140,000,- €. Is it worth registering 1/2 child on the tax card?

Thank you in advance.

Dipl.BW/SB Ulrich Stiller

Dear inquirer,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your situation in an initial consultation as follows:

If the conditions for considering a child in general are met, it would be advisable to take advantage of the child tax allowance, as your income leads to a high tax progression.

The child tax allowance is always of tax significance when it is more favorable in determining the taxable income than the received child benefit, with the half child benefit in your case being credited to the tax advantage.

The half child tax allowance in 2010 is 3,504 euros, while the half child benefit is 1,104 euros. Assuming your tax rate is 40%, you would have a tax advantage of 1,402 euros (40% of 3,504) from the half child tax allowance. The half child benefit of 1,104 euros is then credited to this amount, resulting in a total tax advantage of 298 euros.

I hope that my explanations were helpful to you.

Sincerely,

Ulrich Stiller
Tax Advisor/Qualified Business Economist