Family Bonus Plus brings relief from 2019

In the May edition, we have Assessment draft to Annual Tax Act 2018 reported. The now available Government bill also includes the „Family Bonus Plus“*, which for the first time Calendar year 2019 as well as for the 2019 assessment intended to lead to tax relief. It is a Tax deduction, which is intended to enable the denial of costs related to children from untaxed assets by reducing the tax burden on parents. Through the Family allowance and benefits in kind will continue to be provided, and furthermore, the state will make a contribution towards maintenance or living expenses. The Family Bonus Plus can either as part of Payroll or with the Employee tax return (tax return) can be applied for.

The Family Bonus Plus is intended as Deduction designed its own (so no expenses need to be proven) and is generally based on the Child's age. Pro Kind until their 18th birthday €1,500 per year (125 € per month) for subsequent months (from the month in which the 18th birthday falls) €500.16 per year (€41.68/month each). After the 18th birthday, for the duration of receiving the Family Bonus Plus, it is crucial that for the child (simultaneously) Child benefit granted The values mentioned represent the Familienbonus Plus for children living in Austria, while Amount of the Family Bonus Plus for those abroad dependent on the country in which the child is habitually resident. For Member States of EU, EWR states and the Switzerland is a Indexing of the bonus based on the actual cost of living for children, for those in third countries There shall be living children no Familienbonus Plus However, in cases involving non-EU countries, half of the maintenance payments may be claimed as an exceptional expense.

The reference of Family allowance generally represents an important point of connection for the Family Bonus Plus; if Family Allowance is paid directly to the child, then nevertheless the Parents as beneficiaries of child benefit, typically also for the Family Bonus Plus eligible to apply. For each child, the Family Bonus Plus optional from Beneficiary of family allowance and/or their spouse be claimed. In the sense of a Splitting's könnand also both each the half Family Bonus Plus to claim.

For the Relief from Low earners (and thus not bearing any tax burden) Taxpayers With children it is a Tax refund in the form of the child supplement provided, so that in the end it will certainly lead to a Relief of €250 per child per year comes. A prerequisite for this is, among other things, that Entitlement to the sole earner's and sole parent's tax credit exists, and therefore family allowance is received for the child for more than six months in the calendar year.

In the spirit of Counter-financing will in the future the Child allowance and the Tax deductibility of childcare costs as an exceptional expense way. However, in the case of the omission of childcare costs, for Exceptional cases (Separated parents where one parent bears the majority of childcare costs and incurs at least €1,000 in childcare costs per calendar year) a Special arrangement planned, which should allow an adjustment to the changed framework conditions, similar to a transition period. We will inform you about the further legislative process.

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