What tax benefits do I have as a single parent?
April 1, 2022 | 50,00 EUR | answered by Zofia Schulz
Dear tax advisor,
My name is Erwin Wagner and I am a single parent of a minor child. I am facing the challenge of optimizing my tax situation and I am wondering what tax benefits I am entitled to as a single parent.
Currently, I am in a difficult financial situation as a sole provider responsible for all expenses. I am concerned that I am not taking full advantage of all opportunities to save taxes and increase my disposable income.
Therefore, I am interested in all tax advantages specifically available to single parents. I would like to know, for example, if there is a relief amount for single parents, how child benefit affects my tax burden, and if I can claim certain expenses such as childcare costs or school materials on my taxes.
Furthermore, I would like to know if I as a single parent am entitled to special tax-free allowances and how I can optimize my tax return to take advantage of all tax benefits.
I appreciate your professional advice and look forward to specific guidance on how to improve my tax situation as a single parent.
Thank you in advance for your support.
Sincerely,
Erwin Wagner
Dear Mr. Wagner,
Thank you for your inquiry regarding tax benefits for single parents. As a tax advisor, I can help you and provide you with some important information on this topic.
As a single parent, you are indeed entitled to various tax advantages that can help you optimize your tax situation. One important point is the relief amount for single parents, which is currently €1,908 per year and is automatically taken into account when calculating your income tax. This reduces your taxable income and therefore your tax burden.
The child benefit you receive for your minor child is tax-free and therefore does not directly affect your tax burden. Rather, it is intended to cover the costs of caring for and supporting your child. Additionally, you can claim certain expenses, such as childcare costs or school supplies, as special deductions in your tax return. These expenses also reduce your taxable income and can therefore reduce your tax burden.
Furthermore, single parents often have entitlement to special allowances, such as the child allowance or the childcare and education allowance. These allowances also reduce your taxable income and can therefore lower your tax burden.
To fully utilize all tax benefits as a single parent, it is important that you carefully fill out your tax return and provide all relevant information. It may be worthwhile to consult an experienced tax advisor who can help you identify and take advantage of all possible tax savings.
I hope this information is helpful to you and helps you improve your tax situation as a single parent. If you have any further questions or would like a more detailed consultation, I am at your disposal.
Best regards,
Zofia Schulz
