State maternity allowance in your tax return

What you need:

• Coat bow or
• Investments

Why you need to declare maternity allowance

The maternity allowance is a substitute benefit to relieve the mother financially in the weeks before and after the birth. And although it is a tax-free replacement benefit, this payment must be entered in the tax return. This is due to the following reasons:

• The maternity allowance must be declared in the tax return as this income is added to the taxable income so that the correct tax rate can be determined. This means that the maternity benefit increases your own income tax rate due to the progression.
• When calculating the tax, however, the maternity benefit is subtracted again so that only the remaining income is taxed at the higher income tax rate.

State the compensation in the tax return

To enter the maternity allowance in the tax declaration you have two options:

• You can enter the maternity allowance either on the cover sheet or in Appendix N.


Tax return and parental allowance - you should bear this in mind on the form

The parental allowance is not taxed, but it still has to be included in the tax return ...

• If you enter the maternity allowance on the cover sheet - for example because you are self-employed and therefore do not submit Annex N - then you must do this on the fourth page under line 94.
• If you would like to enter the maternity allowance in Appendix N, you must use line 29 on the first page.
• Please note that you must always enclose a corresponding certificate and that you - if you have more than one Replacement benefits apply in one year - add all benefits received together and as a total have to enter.