The federal government supports citizens in coping with the sharp increase in the cost of living. With their relief packages, including the energy price flat rate, the child bonus and a heating cost subsidy. Read here when and what is paid.
The increased cost of living is driving the citizens – and the government. Therefore, the traffic light coalition decided to support the people in this country. In the form of their relief packages. The 9-euro ticket and the tank discount have been available since last month. Further relief is now due.
Read here what they are and when the money will flow:
One-time payment for recipients of unemployment benefit 1 in the amount of 100 euros
The one-time payment of 100 euros for recipients of unemployment benefit 1 is to be paid out in July. Around 4.8 million adults benefit from the Hartz IV basic security or those who receive benefits from the basic security for older people and people with reduced earning capacity or under the Asylum Seekers Benefits Act.
The energy price flat rate
All employees subject to income tax (tax brackets 1-5) are paid a one-off energy price flat rate of 300 euros. According to the Federal Ministry of Labor (BMAS), according to the government draft, “all marginal part-time employees this year will also benefit from the energy price flat rate – both the 450-euro mini-jobbers and short-term (marginal) employees – regardless of the exact type of taxation.”
The money will be transferred by the employer with the September 2022 salary. The self-employed receive an advance in the form of a one-off reduction in their income tax prepayment. The grant is taxable.
EEG levy is eliminated
The EEG surcharge fell to 4.43 cents per kWh (gross) on January 1st. Now, after 20 years, it will be abolished entirely – for a limited period until December 31, 2022, in order to relieve households of the increased electricity costs or to dampen the sharp increase somewhat and ensure more stable electricity prices.
According to the comparison portal Verivox, this results in savings of around 177 euros (gross) for a three-person household with an annual consumption of 4000 kWh. A single household with an annual consumption of 1500 kWh saves around 66 euros (gross), larger households with an annual consumption of 6000 kWh around 266 euros (gross). Existing customers will benefit in the short term, but in the medium to long term the levy stop will at best have a dampening effect on price development.
Basic allowance is increased
In 2022, the basic tax-free allowance increased from 9,984 euros to 10,347 euros retrospectively to January. Since the lump sum was last raised in 2011, according to the German Economic Institute (IW), an increase was overdue. These planned changes will save around 190 euros in 2022 for a single-earner family with two children and a gross income of 50,000 euros. If both parents work, it is around 242 euros due to the double employee allowance, the IW calculates. Calculated for the year as a whole, mind you.
The taxpayers’ association assumes that employers will pay back the overpaid wage tax by July at the latest. This is happening retrospectively up to and including January 1, 2022. All taxpayers, employees and pensioners will benefit from the change, provided they pay income tax. Employees do not have to do anything themselves for the small plus in net salary, this happens automatically. This is because the employer must take the higher wage tax allowance into account when calculating the wages. For pensioners, the tax reduction will take effect after the tax return for 2022 at the latest.
Child bonus is paid out
A children’s bonus of 100 euros per child is also included as part of the relief packages for citizens decided by the federal government. In addition to other measures, this should help families to cushion the sharp rise in energy and fuel prices. This will be paid in July. The money should be transferred in the form of a one-time payment via the family coffers, usually not together with the child benefit. According to RTL, the payment will be made a few days after the regular child benefit payment in July. When the child bonus is then in the account depends on the last digit of the child benefit number:
Immediate child supplement
The immediate surcharge for children is intended for all families who have little or no income. The following requirements apply: The child has not yet reached the age of 25; they live with their parents or one parent in a household; the child receives unemployment benefit II, social benefits or benefits for education and participation
The supplement is 20 euros per month and will be paid out automatically from July 2022. An additional application is not necessary for this.
One-off heating allowance
Recipients of housing benefit receive a one-time heating subsidy of 270 euros (for a household with two people: 350 euros, each additional family member an additional 70 euros). Apprentices and students receiving BAföG receive 230 euros. Condition: You must have received housing benefit or BAföG for at least one month during the heating period from October 2021 to March 2022. Apprentices and students may no longer have lived with their parents during this time.
The subsidy should come automatically to the account – you don’t have to submit an application for it. However, there is no specific payment date for this yet. According to the federal government, the payment should take place in the course of the summer.
Increased commuter allowance for long-distance commuters
The commuter allowance for long-distance commuters will be increased retroactively to January 1st. From the beginning of the year until 2026, from the 21st kilometer, they can claim 38 cents per kilometer of the journey to work from their taxes. This was initially planned from 2024. The distance allowance can be claimed regardless of the means of transport via tax return.
Advertising fee increases
For employees, the lump sum, up to which the job costs are tax-free, also increases retrospectively from January 2022 by 200 euros to 1200 euros. All employees who have less than 1200 euros in income-related expenses per year can benefit. For example, with a gross monthly income of EUR 4,000, this means around EUR 67 in tax savings per year. However, this only becomes noticeable in the tax return for the year 2022. However, there is no advantage if you sell more than 1200 euros in commuter allowances just for your commute to work.
(This article was first published on Friday, July 01, 2022.)
