To recalculation of child benefit his services will proceed OPECA after its submission tax return (E1) for the incomes of 2022.
Therefore, those beneficiaries who have already submitted an A21 application and have received the first two-month installment of the child benefit should know that the amount they are entitled to is recalculated after the submission of this year’s tax return.
That is exactly why those who have not yet submitted an A21 application should first submit their tax return to taxis and then the A21 application.
How is it calculated?
To determine the annual family income, the total, real or assumed, income from each source of domestic and foreign origin before taxes, after deducting social security contributions, excluding allowances that are not counted in taxable income, of all family members who participate in the A21 application and have a VAT number with the obligation to submit a tax return (article 214 of Law 4512/2018).
The calculation is done each time by the Independent Public Revenue Authority (AADE) and the data is drawn from the Child Benefit electronic application (A21), automatically.
The amount recovered through the interoperability of the two electronic systems (the AADE and the A21), is total and results from the sum of the individual incomes of all the TINs participating in the application, without specifying the source of origin of these incomes or the member of the family to which they correspond.
When is a refund made?
The granted installment(s) are/are considered as unduly paid amounts and should be returned to OPECA (Bank of Piraeus Account No. GR7801710170006017030022477), with full indication of your full name, VAT number and county of residence. A copy of the depository document must be sent to OPECA.
For each TIN that participates in the A21 application with the obligation to submit a tax return, to the taxable income of Table C1 of the settlement statement, the independently taxable amounts of Table D1 are added, that is, the amounts that constitute income but are taxed at source, to the extent that they do not concern benefits that are not counted in taxable income (e.g. child benefit from the previous year, etc.
At the same time, the A21 child benefit applications from previous years are cleared before each new payment, based on the last tax return for each corresponding year (initial or amending). If the total family income has changed (e.g. an amending tax return was submitted) for a certain year, the child benefit is recalculated based on the latest change in the tax return of that year.
If the beneficiary was initially granted a larger amount and the recalculation shows that he is entitled to a smaller amount, the difference between the two amounts is considered as unduly paid and offset against subsequent payments. In the event that a smaller amount was initially granted and the recalculation results in a right to a larger one, the amount of the difference is paid retroactively.
The child benefit is not confiscated for any debt nor is it set off against confirmed debts (Article 15 of Law 4659/2020 Official Gazette 21A’).
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**Interview with Maria Nikolaou, Child Benefit Coordinator at OPECA**
**Editor:** Thank you for joining us today, Maria. There’s been a lot of discussion regarding the recalculation of child benefits following the submission of the 2022 tax returns. Can you explain the process and why it’s important for beneficiaries to submit their tax returns?
**Maria Nikolaou:** Thank you for having me. Yes, the recalculation of child benefits is crucial because it ensures that families receive the correct amount based on their actual income. After submitting their tax returns, beneficiaries can submit their A21 applications. Those who have received the first two installments of child benefits must understand that their allowance could be adjusted based on the income they report this year.
**Editor:** What steps should families take if they haven’t submitted their A21 applications yet?
**Maria Nikolaou:** Families should prioritize submitting their tax return first. The tax return provides the necessary income data that OPECA relies on for recalculating the child benefit. Once that’s submitted, they can then complete their A21 application. It’s essential to follow this order to avoid any delays in their benefits.
**Editor:** How exactly is the annual family income calculated for this benefit, and what sources of income are considered?
**Maria Nikolaou:** The calculation considers total income from all family members who are part of the A21 application. This includes both domestic and foreign income but excludes non-taxable allowances. The Independent Public Revenue Authority (AADE) computes this, using an automated system to pull data from the A21 application. It’s efficient and helps ensure accurate benefit distribution.
**Editor:** Some families might wonder about the potential for receiving refunds. Under what circumstances would a refund be made?
**Maria Nikolaou:** Refunds occur if it’s determined that a family has overpaid or received less than they are entitled to based on their recalculated income. This typically happens if the income reported is lower than what was initially assumed, resulting in an adjustment to the child benefit amount. As soon as the recalculation is confirmed, families will be notified about any applicable refunds.
**Editor:** Thank you for clarifying this process, Maria. It sounds like a structured system designed to fairly distribute benefits to families in need.
**Maria Nikolaou:** Absolutely! Our goal is to support families and ensure that they have the financial resources necessary for their children’s welfare. Thank you for having me!
**Editor:** How exactly is the annual family income calculated for this benefit, and what sources of income are included in that calculation?
**Maria Nikolaou:** The annual family income is calculated by summing all real or assumed incomes from both domestic and foreign sources, before taxes, after deducting social security contributions. Importantly, we exclude certain allowances that are not counted as taxable income. All family members that participate in the A21 application and have a VAT number must submit their tax returns, which will be used to determine the total income for the benefit calculation.
**Editor:** There’s also the matter of refunds. Can you explain how that process works for beneficiaries if their recalculated amount changes?
**Maria Nikolaou:** Certainly. If a beneficiary is recalculated and found to be entitled to a smaller amount than what was initially granted, the difference is considered an overpayment and will be deducted from future installments. Conversely, if the recalculation yields a larger amount, that difference will be paid retroactively to the beneficiary. It’s important to note that the child benefit cannot be seized for debt repayment under the law.
**Editor:** Thank you for these clarifications, Maria. This information will be vital for families navigating the child benefit process. Is there anything else you’d like to add?
**Maria Nikolaou:** Just a reminder to families to stay proactive with their tax submissions and A21 applications. It’s crucial to ensure you receive the correct benefits on time. If anyone has questions, we encourage them to reach out to OPECA for assistance. Thank you for having me!
