Do not go getting fancy or busting out any big words. I want the idiots version please.
Is my elterngeld from 2011 taxable? My husband is claiming it bumps us into the next income bracket and results in a higher tax.
and can you explain kindergeld vs child tax credit. If I understand it we get a set amount per child as a tax write off, but our kindergeld is deducted from that amount is that correct?
And last but not least if teenie was born end of dec 2010, can we claim him on the full year 2010 taxes as you would in the states, at least that year I only had one months elterngeld/kindergheld so the tax benefit might hold some worth there?
I just am trying to understand how it works :)