So far, more than 2 billion euros have been paid out or credited to eligible families for 2022 using this deduction, which reduces income tax. Now that tax assessments are possible retroactively for five years, the ministry expects the amount to rise to 2.4 billion, according to Wednesday’s release.
Meanwhile, the simplification of digital applications will continue to be pushed forward. According to the finance department, the new FABIAN procedure already ensures less bureaucracy, for example by automatically exchanging data with the universities and allowing family allowances to continue to be paid out seamlessly following graduation without an application. Thanks to technical innovations, FABIAN now also has an interface to the apprentice database, the European Performance Information Exchange (ELISA) and a connection to the Ministry of Social Affairs Service for the disability pass.
It is planned for the future that reservations or orders to rectify defects and ALF letters (family allowance without an application) can be answered via FinanzOnline, as well as an automated notification of the processing status and a connection to social security data.
