Navigating Child Benefit Claims: A Focus on vocational Training and Military Service

The Federal Fiscal Court (BFH) has recently addressed a critical aspect of child benefit claims, specifically concerning situations where a child undertakes voluntary military service. The court clarified that simply canceling voluntary military service does not automatically qualify a parent for child benefits.However, the door remains open for claims under specific circumstances, particularly those related to vocational training.

Key Considerations for Child Benefit eligibility

Child benefit claims can be justified if the child meets certain legal criteria. These include actively pursuing vocational training during their military service or facing obstacles in starting or continuing such training due to a lack of available positions. Participation in team duties following basic training within the voluntary military service does not negatively impact these considerations.

Case Background: Voluntary Military Service post-Secondary Education

the case in question involved a plaintiff whose son (referred to as “S”) completed a ten-month voluntary military service after finishing his secondary education. Initially, the family fund approved child benefit for the period between S’s graduation and the start of his basic training, and also during the training itself.

• The family fund initially approved child benefit for the transition period and basic training.
• following basic training, S engaged in team duties without further formal training within the military.
• After completing his military service, S enrolled in a civilian university, a decision he made during his service.

The family fund, acting as the defendant, subsequently denied child benefit for the period between the end of basic training and the commencement of S’s university studies. The financial court concurred, emphasizing that voluntary military service, unlike voluntary social or ecological years, is not explicitly listed in Section 32 (4) sentence 1 No. 2 of the Income Tax Act (estg) as a qualifying factor for adult child benefit claims.

The Court’s Decision: Vocational Training Opportunities as a Decisive Factor

The BFH partially upheld the plaintiff’s appeal. The court determined that child benefit eligibility could persist even after the completion of basic training and despite the child’s employment as a soldier with regular working hours exceeding 20 hours per week. This hinges on weather the child, like S in this case, is unable to commence or continue vocational training due to a shortage of training opportunities. This ruling underscores the importance of access to vocational training in determining child benefit eligibility.

Child benefit could exist, if the child vocational training do not start in the absence of a training position Or can continue.

Basic Training: An Incomplete Vocational Qualification

While a three-month basic training program is a component of officer or non-commissioned officer training, its completion does not equate to the termination of initial vocational training as defined by Section 32 (4) sentence 2 EStG. The court emphasized that the intent and prospect to pursue further vocational qualifications are crucial.

Evidentiary Requirements for Claim Approval

The BFH did reject the plaintiff’s claim for one month, citing insufficient evidence that S had definitively decided on his course of study during that specific period. The court clarified that simply stating the decision was made earlier is not enough to substantiate the claim. Concrete evidence is required to demonstrate the child’s intent and actions towards pursuing vocational training or higher education.

Implications and Future Considerations

This ruling highlights the complexities of child benefit claims in the context of voluntary military service. Parents and guardians should be prepared to provide detailed documentation regarding their child’s efforts to secure vocational training opportunities. As youth unemployment rates fluctuate, access to training positions remains a critical factor in determining eligibility for child benefits. According to recent statistics, the youth unemployment rate in the EU is currently at 14.5%, making the availability of training positions a meaningful concern for many families.