Claiming wife and child living abroad on tax

Hi all, I am an Australian with a British passport currently living and working in Italy, and I am evaluating a job offer from Germany. My friend, who already lives there tells me bring able to claim your wife and child as dependants makes a big difference to your taxes. My wife and child will probably stay in Italy for a year before joining me, and we will travel to each other on weekends. I will be a German resident but they won't. Will I still be able to claim them as dependants, I would be their only source of income.

Thanks for any info you have.

International tax regulations are very complex, so you better consult a good tax adviser before deciding anything.
My (limited) understanding is that your wife and kid must have a permanent abode in Germany in order to be tax-liable, and only then you can include them in your tax declaration. There are some exceptions from this rule, and also a (limited) possibility to deduct maintenance payments to dependants abroad, which only an expert can explain to you.

Aziraphael wrote:

Hi all, I am an Australian with a British passport currently living and working in Italy, and I am evaluating a job offer from Germany. My friend, who already lives there tells me bring able to claim your wife and child as dependants makes a big difference to your taxes. My wife and child will probably stay in Italy for a year before joining me, and we will travel to each other on weekends. I will be a German resident but they won't. Will I still be able to claim them as dependants, I would be their only source of income.

Thanks for any info you have.


***********************************************************
Hi. When you start working and paying your taxes here in Germany, you can claim your wife and child as dependants in filing your tax Declaration for the year!

What you just need is a proof that you are sending money every month. If you will be using a bank to bank transfer, ask the bank for a receipt of that transfer (you can tell them that it is for your tax declaration), if you will be using a money transfer agency like Western Union or Moneygram, you can keep all the transfer copies and attach them to your application.

There is a form called "Family Support / Maintenance form" which you can download in the Finanzamt website. This form should be filled up by your dependants and should be stamped and signed by any authority in the City Hall where they live in Italy - certifiying that they are a resident of that town.

But still it is the Finanzamt who will decide if you will get a tax refund or not.

My 2 children and my parents are my dependants in Philippines and since 2008 I am getting a refund from our tax.

A simple tip: dont try to understand the tax system of Germany, as it is VERY complicated...just try to file it and wait for 60 days..you will get a letter from the Finanzamt --it is either they may require more infos or you a have a refund (GUTHABEN)

I hope this helps..


Goodluck.

Sharon

Hi,

I am a specialist in tax matters for expatriates and I can inform you about the possibilities to file a jointly tax return in Germany:

1. You are unlimited tax liable in Germany and an EU citizen
2. Your wife is living abroad in another EU Country
3. You are married

If this is the case in the German tax return there is the possibility to apply for the special rule that your wife will be seen as unlimited tax liable. the consequence is that you would be taxed with tax class III (which is the most favorable in Germany).

Furthermore you have the right to apply for German child benefit (184 € per month for one children) minus the received amount of child benefit in the other EU country.

[Moderated: No free ad on the forum pls]

In case of Italy there is no child benefit, that means your formula is a nice 184 - 0.

I have a similar problem. In year 2013 I sent (in 7 different payments along the year) 750 to my wife's mother in Peru and now I have to let her fill the mentioned form.

Clearly she don't live only with money we send to her, but other two daughters of her are sending money from Spain. How much, sure no one knows. They are not used to keep papers.

I don't know was it the acceptable amount of money to consider it as a maintenance. How much can I save declaring that maintenance? I would devolve all that money tho my mother in law since I don't need them. But I don't want to cheat with the system.

Is there some link (even in German) where this topic i discussed and quotas per country are described?

Thank you in advance.