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Solos away, child benefit up: that’s how much money you’ll save in 2021

High-income families will particularly benefit from the federal government’s tax gifts in the coming year. Because whoever earns more saves more. Financial experts have calculated that you can save up to 2,300 euros. But even average earners and single parents can look forward to significantly more money at the end of the month.

The solos are omitted

The solidarity surcharge no longer applies after 25 years. Actually, only the allowance is increased significantly, but 90 percent of the lower tax brackets then no longer pay 5.5 percent on income tax. Up to a gross wage of around 6,200 euros, the solos no longer have to be paid. This results in partial savings of almost 900 euros!

6.5 percent of citizens only have to pay part of the solos, depending on their income. Top earners continue to pay the solos in full. This applies, for example, to singles who earn more than 109,000 euros a year.

More money for families

The Child allowance rises by a whopping 576 euros to 8,388 euros per year.

The Child benefit increases by 15 euros per child per month. It is then 219 euros for the first and second child, 225 euros for the third child and even 250 euros from the fourth child.

The Maintenance advance from the state for single parents increases by up to 16 euros per month.

The Child allowance increases from 185 to 205 euros per month. Families with low incomes receive the supplement in addition to child benefit and housing benefit.

The commuter allowance increases

From January a CO₂ tax will be due on gasoline, diesel, heating oil and natural gas. Then the CO₂ emission costs 25 euros per ton. For consumers this means: In 2021, gasoline will become seven cents per liter, diesel and heating oil almost eight cents. Natural gas rises by 0.6 cents per kilowatt hour.

To compensate for this additional burden, the state increases the Commuter flat rate from 30 to 35 cents. It applies from the 21st kilometer. Low-wage earners whose taxable income is below the basic allowance (9,744 euros) and therefore do not have to pay taxes will receive the so-called from 2021 Mobilitätsprämie. From the 21st kilometer you receive 14 percent of the increased commuter allowance – i.e. 4.9 cents. The prerequisite for this is a formal tax return.

In addition, there is a surcharge for housing benefits, which averages 15 euros per month, plus around 3.60 euros for each additional person in the household.

Even more relief

The Basic pension comes on January 1, 2021. The maximum basic pension surcharge is 418 euros gross per month and applies to everyone with at least 33 years of contributions.

The income limit above which you have to pay taxes at all increases to 9,744 euros. This compensates for the cold progression, which leads to a little more income being taxed higher – even if the narrow salary increase only compensated for inflation.

The minimum wage increases from January from 9.35 to 9.50 euros per hour. In July there is a further increase to EUR 9.60.

For people with disabilities they double Lump sums for the disabledthat they can claim for tax purposes instead of their actual costs

The new one will be available in 2021 Home office flat rate of a maximum of 600 euros per year for those who cannot claim costs for a separate study at home. This also applies retrospectively to 2020.

Hartz 4 rates rise

The Hartz 4 standard rate for a single person will increase by 14 euros per month from January 2021. Those who live in a community of needs receive twelve euros more. Children up to five years receive 33 euros more, children from six to 13 years one euro, young people up to and including 17 years 45 euros.

Care allowance reform 2021

The care allowance reform, which is to increase care allowance, outpatient care benefits in kind and day care by five percent on July 1, 2021, has not yet been approved. According to a key point paper, the flat rate for care aids is to rise to 60 euros.
The flat rates for short-term care and Preventive care should be combined into a relief lump sum totaling 3,300 euros per year.


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