Cunning the Tax System: How to Grab Parental Allowance Even if You Make Over 175,000 Euros!
- by Nina Ponath
- 6 Min
Unbelievable: Earn More than 175,000 Euros Yet Still Qualify for Parental Allowance! - High earners with an income over 175,000 euros are eligible for parental benefits.
"What's the deal with our income going beyond 175,000 euros?" Tax guru Kim Knopf from the tax consultancy "TaxItSmart" in Bad Schönsborn has been fielding this question more often these days.
- Parental Allowance
- Combined Household Income
- Income Threshold
- Income Tax
- Additional Benefits
Tax consultants are reporting a consistent increase in queries around the parental allowance, or as it's known in Germany, Elterngeld. With the income threshold for receiving Elterngeld set at €175,000 per year for both parents combined as of April 1, 2025[1], there's a sneaky way some households might still snag this allowance, should their income be higher. Here's the lowdown:
Income Balance Act
The income threshold applies to the combined household income, encompassing both parents. In the event one parent earns significantly less than the other, the household might still qualify as their combined income could be below or at the threshold[2].
Extra Perks
While Elterngeld eligibility isn't directly linked to other tax benefits, families can still tap into additional financial support through tax allowances like the Kinderfreibetrag (child allowance) and Entlastungsbetrag für Alleinerziehende (relief allowance for single parents)[5]. These benefits won't affect your chances of snagging Elterngeld but can help cushion the financial blow should your income outstrip the threshold.
Application Time
To grab Elterngeld, parents must officially apply through the proper authorities. The application process entails verifying income and other eligibility criteria[3].
tl;dr:You can still claim Elterngeld if your combined household income doesn't exceed €175,000 despite individual earnings exceeding the threshold. Don't forget to explore additional benefits like child allowances and relief allowances for single parents. A quick, painless application process should leave you ready to rake in the dough.
- The institutional framework of the community institution, in the form of tax laws and regulations, plays a crucial role in the process of claiming Parental Allowance (Elterngeld) in Germany.
- Businesses and individuals seeking information on Personal Finance, such as Elterngeld and other financial support, can consult tax consultants, like Kim Knopf from "TaxItSmart," who operate within the institutional framework.
