In certain cases, a child may be unable to continue their vocational training due to a long-term illness. This gives rise to important changes regarding entitlement to Kindergeld (child benefit), which are explained below.
Case in Dispute: Accident During Training
In the case in dispute, it was unclear whether the claimant was entitled to Kindergeld for her ill son. The son had started vocational training in August 2015 and was expected to complete it in December 2019. In September 2018, however, he suffered a serious accident, as a result of which a medical assessment in January 2019 found him to be unfit for work for an indefinite period. The family benefits office (Familienkasse) thereupon refused to continue paying Kindergeld beyond September 2018. The fiscal court (Finanzgericht), by contrast, ruled that Kindergeld was to continue to be taken into account in the claimant's tax return pursuant to § 32 Abs. 4 S. 1 Nr. 2 a EStG. The court's reasoning was that the training relationship continued to exist and that the intention to complete the training was present.
BFH Decision – Contradiction of the FG
The BFH, however, ruled that in the event of an illness of the child lasting longer than six months, consideration for Kindergeld purposes on the basis of a training relationship under § 32 Abs. 4 S. 1 Nr. 2 a EStG is excluded. Instead, consideration on the basis of a disability under § 32 Abs. 4 S. 1 Nr. 3 EStG may be possible. The reasoning is not only the duration of the illness but also that, as a result of the illness, the child is no longer able to support themselves.
Interruption of Vocational Training Due to the Child's Illness
By definition, a person is in vocational training within the meaning of § 32 Abs. 4 S. 1 Nr. 2 a EStG if they are seriously and consistently preparing to achieve their professional objectives. It is not sufficient that a training relationship exists; rather, serious and sustained training measures must be undertaken. An exception applies, however, where the trainee falls ill and must therefore interrupt the training. In such cases, a training position and the intention to continue training are sufficient.
Distinction Between Kindergeld for Training and for Disability
In order to avoid a blurring of the legal bases for entitlement, a clear distinction between the two is possible. In the case of an ill child in training, entitlement under § 32 Abs. 4 S. 1 Nr. 2 a EStG continues to exist until, according to a medical prognosis, the child is highly likely to be unable to continue training for more than six months. Following such a prognosis, the basis for entitlement under § 32 Abs. 4 S. 1 Nr. 2 a EStG ceases to apply and the child is deemed to be long-term ill. However, an entitlement under § 32 Abs. 4 S. 1 Nr. 3 EStG may then arise.
Frequently asked questions
Frequently asked questions
Is there entitlement to child benefit during a short-term illness-related interruption of training?
Yes. In the event of an illness-related interruption of vocational training, entitlement to child benefit under § 32 Abs. 4 S. 1 Nr. 2 a EStG remains in place as long as the illness is not expected to last longer than six months. In this case, it is sufficient that the training position continues to exist and the child intends to resume training, even if no training activities are currently being carried out.
When does the entitlement to Kindergeld for vocational training cease in cases of prolonged illness?
According to BFH case law, the entitlement under § 32 Abs. 4 S. 1 Nr. 2 a EStG ceases as soon as a medical prognosis indicates that the illness is highly likely to last longer than six months. The child is then deemed to be suffering from a long-term illness and can no longer be considered as being in vocational training.
Can Kindergeld continue to be received for a child with a long-term illness?
Yes, but on a different legal basis. Instead of § 32 Abs. 4 S. 1 Nr. 2 a EStG, eligibility may arise on grounds of disability under § 32 Abs. 4 S. 1 Nr. 3 EStG, provided the child is unable to support themselves as a result of the illness. The key requirement is the inability to self-support due to the illness.
What is the significance of the six-month threshold for child benefits in cases of ill trainees?
The six-month threshold is the decisive criterion distinguishing child benefits granted on grounds of vocational training from those granted on grounds of disability. If the projected duration of the illness does not exceed six months, the child retains trainee status. If, according to the medical prognosis, the illness is expected to last longer, entitlement is only possible under the disability provisions.
What are the general requirements for child benefit during vocational training?
Under § 32 Abs. 4 S. 1 Nr. 2 a EStG, the child must be preparing seriously and consistently for their career goals. A mere training relationship is not sufficient; actual training measures must be undertaken. An exception applies only in cases of illness-related interruption, provided the training position and the intent to continue training remain in place.