The German state supports families through parental allowance (Elterngeld), enabling parents to care for their newborn child without financial strain. However, Elterngeld has tax implications. Here’s what to consider and how to enter it in the Taxfix app.
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Parental allowance is tax-free but subject to the progression clause.
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There are three types: basic allowance, ElterngeldPlus, and partnership bonus.
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If you received more than €410 in Elterngeld in a year, you must file a tax return.
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Enter Elterngeld in the app under "Income" → "Substitute benefits".
🚀 Your Guide
What is parental allowance?
Elterngeld replaces income when a parent takes time off work after childbirth. It supports parents during their child’s early life.
There are three types of Elterngeld (which can also be combined):
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Basic parental allowance: up to 14 months, max. 12 months per parent + 2 extra months if shared
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ElterngeldPlus: longer duration with lower monthly payments
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Partnership bonus: for parents who work part-time simultaneously
In special cases, relatives up to the 3rd degree (e.g. grandparents, siblings) can receive Elterngeld.
How much is it?
The amount is based on the average net income of the receiving parent before the birth:
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Minimum €300, maximum €1,800 per month
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With ElterngeldPlus: half the amount, but double the duration
Example rates:
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€1,000–1,200 income → 67%
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from €1,240 → 65%
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below €1,000 → up to 100%
The lower the income, the higher the replacement rate.
How to apply for it
Apply through your local Elterngeldstelle (youth welfare office). Each parent submits their own application.
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Deadline: within 3 months after the birth (only 3 months retroactively)
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The application can be changed while receiving payments
More details and the application form are available at the Federal Family Portal.
Tax impact of Elterngeld
Parental allowance is tax-free, but it is subject to the progression clause. This means it increases your tax rate and can lead to a higher tax bill.
Especially when combined with part-time income or returning to work, many families face back payments.
Tip: See our article on income replacement benefits to better understand their tax effects.
Filing obligation when receiving Elterngeld
If you received more than €410 in Elterngeld during the year, you are required to file a tax return.
You’ll receive a certificate from the Elterngeldstelle confirming the payments. Keep it in case the tax office requests it.
How to enter Elterngeld in the Taxfix app
If you were on parental leave the entire year, go to the "Job" category in the app. Answer "No" to the question about the annual payslip and select "Was completely on parental leave".
Enter your Elterngeld in the "Income" section:
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Select "Substitute benefits", then choose "Parental allowance (Elterngeld)"
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Or tap "Something else" and choose additional benefits (e.g. maternity pay)
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If your benefit isn’t listed, enter it manually
📄 Keep your Elterngeld certificate ready – you don't need to submit it immediately but may have to present it to the tax office if requested.
🚀 Fill out the simple question-answer flow - we'll take care of the rest!
Still have questions?
We're here to help! Contact our support team: support@taxfix.de