Reasons for the Recovery of Child Benefit
The family fund can recover overpaid child benefit if it later turns out that the eligibility requirements were no longer met. Common reasons for recoveries are:
- Termination of Vocational Training (Ausbildung): The trainee has prematurely ended the vocational training, and the family fund was not informed in time.
- Interruption of Vocational Training (Ausbildung): A prolonged interruption, such as due to illness or parental leave, was not reported.
- Change of Residence: The trainee or parents have moved their residence abroad and have given up their unlimited tax liability in Germany.
- Incorrect Information: Incomplete or incorrect information during the application process led to erroneous payments.
Procedure for Recovery
If the family fund determines that the child benefit was paid unjustly, a written notice regarding the recovery will be issued. This notice will specify the amount to be recovered as well as the reasons for the recovery. The affected individuals will receive a deadline within which they must repay the amount.
Possibilities for Objection
An objection against the recovery notice can be submitted in writing within one month after receipt. Those affected should present their objections and any evidence that supports their claim for child benefit. If the objection is rejected, there remains the option to file a lawsuit at the tax court.
Installment Payment and Deferral
If immediate repayment of the demanded amount would cause financial hardship, an installment payment or deferral can be requested from the family fund. The decision regarding such relief is at the discretion of the family fund.
Important Notes to Avoid Recoveries
To prevent recovery of child benefit, parents and trainees should always inform the family fund about changes that could affect the child benefit entitlement. These include:
- A change or termination of vocational training (Ausbildung)
- A prolonged interruption of vocational training (Ausbildung)
- A change of residence abroad
In case of uncertainty, it is advisable to contact the family fund in a timely manner to clarify potential misunderstandings.