Household allowance

A special exemption was granted to taxpayers who are not assessed separately for income tax according to the splitting procedure and also not as spouses, provided they receive a child allowance or child benefit for at least one child (Section 32 VII EStG old version). Abolished from VZ 2004.
Most recently, the amount of the household allowance was € 2340. The aim was the equal treatment of single parents in the lower proportional zone of the income tax rate with the married couples, since they could not use the advantages of the splitting procedure. As a replacement, single parents will be granted a relief amount of € 1,308 from 2004 (§24b EStG).

The relief amount is deducted from the total income when determining the total amount if your household has at least one child for whom you are entitled to an exemption under Section 32 VI of the Income Tax Act or child benefit.

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