Definition of Relevant Income
For the calculation of housing benefits, the so-called relevant income is considered. This includes all regular income of the applicant and the household members who belong to the community of need. Specifically, this includes:
- Vocational Training Compensation (Ausbildungsvergütung)
- Income from side jobs
- Alimony payments
- Pensions and social benefits such as unemployment benefits I
- Income from self-employment
Certain tax-free income, such as child benefits or BAföG, is disregarded as long as it does not cover the need.
Calculation of Gross Income
The starting point for calculating the relevant income is the gross income. Deductions are made from this to determine the net income. These include:
- Taxes (income tax, church tax)
- Social security contributions (health, pension, unemployment, and long-term care insurance)
- Flat-rate advertising expenses of at least 10% of the income
The housing benefit office considers the adjusted net income in determining the entitlement to housing benefits.
Income Exemptions
For certain groups of people, there are additional exemptions that reduce the relevant income. These include:
- Exemptions for people with severe disabilities
- Exemptions for single parents
- Child allowances when children live in the household
These exemptions have a positive effect on the amount of housing benefits as they lower the relevant income.
Income Verification
To calculate housing benefits, current income verification must be submitted. This includes:
- Pay slips from the last three months
- Certificates of social benefits
- Proof of alimony payments
- Tax assessments for self-employed individuals
The housing benefit office checks the documents and calculates the average monthly income.
Variable Income
If the income fluctuates monthly, for example, with self-employment or seasonal side jobs, an average income is calculated over a longer period. Typically, the average is calculated over the last twelve months.
Maximum Income for Housing Benefits
The maximum income, up to which housing benefits are granted, depends on the size of the household, the regional rent level, and the rental costs. If the calculated income exceeds the specified limit, the entitlement to housing benefits is lost.
Changes in Income
If the income changes during the period of receiving housing benefits, for example, due to a pay rise or loss of a side job, this must be immediately reported to the housing benefit office. A change in income can affect the entitlement to housing benefits and lead to an adjustment of the amount of housing benefit.