Child benefit eligibility with residence in the USA
December 27, 2012 | 25,00 EUR | answered by Oliver Burchardt
Under what conditions can one receive child benefit or parental allowance from Germany if the primary residence is in the USA?
My husband will be transferred to the USA in the middle of next year and will also be taxed there. I will move with our 3 children as well.
The sending company requires deregistration confirmations from the city for the entire family. We will not maintain our habitual residence or a primary residence in Germany, but we will have rental income in Germany.
Is it possible for us to file separate tax returns, and for me to remain fully taxable in Germany due to the rental income, thus making me eligible for child benefit or parental allowance? I have no other global income.
What about the first year, since we were still registered in Germany, or in the following years?
Are there any other possibilities?
Dear questioner,
Thank you for your inquiry, which I would like to answer as part of an initial consultation.
Unfortunately, I do not see any ways to maintain your entitlement to child benefit if you no longer have a residence in the Federal Republic of Germany.
While you can theoretically apply to be treated as a fictitious unlimited tax resident in Germany, according to § 1 para. 3 Income Tax Act (EStG), this will not help you with your child benefit claim, as according to § 63 para. 1 sentence 3 EStG, children are only taken into account if they have their residence in the EU or the EEA. By relocating the residence of the children to the USA, you can no longer meet this requirement to be fulfilled in the person of your children.
Unfortunately, I also do not see any other ways to maintain the child benefit claim in your case, as the children no longer reside in Germany.
In the year of the move, you are of course entitled to child benefit until the move itself. In the assessment for 2013, it will then be checked whether child benefit or the proportional child allowance is more advantageous for you. As stated above, there is no entitlement to child benefit in any subsequent years.
Yours sincerely,
Oliver Burchardt
Tax consultant
