❗️ Every resident of Germany has the right to a certain amount of tax exemption,
calculated based on the cost per child. This amount is called Kinderfreibetrag.
KINDERFREIBETRAG - the amount of the reduction in the taxable income base
🔹The amount includes the cost of living for the child and the cost of his care and education.
➡️The state calculates Kinderfreibetrag as follows:
✅Thus, the amount in 2021 for each of the child's parents will be 4'194 €.
✅And for a family consisting of dad + mom + child, the amount doubles, i.e. 8'388 € in 2021 (in 2020 – 8'388 €).
❗️Kinderfreibetrag amount is tax-free.
Under what conditions is it more profitable to abandon Kinderfreibetrag.
