Parents of children who have reached the age of majority are familiar with this problem: at what point does entitlement to child benefit cease when a child starts work after completing their training? On 22 April 2026, the Federal Fiscal Court (BFH) handed down an important ruling on this matter, which directly affects families with children working in the emergency services (Ref.: III R 7/24).
What is child benefit after the end of a child’s education?
The Income Tax Act distinguishes between two situations: if a child is still undertaking their first vocational training or their first degree, they remain eligible for child benefit, regardless of how many hours they work alongside their studies. However, once they have completed this initial training, child benefit is only payable if the child works no more than 20 hours per week. This limit is crucial, as many young people work full-time after completing their training before embarking on further education.
The specific case: a daughter who is halfway through her paramedic training and her advanced paramedic training
In the case in question, a 21-year-old woman had completed a training course to become a paramedic from February to May 2023, following her A‑levels and a period of voluntary service with the federal government. This training comprises just 520 hours and takes around three months to complete on a full-time basis. She then worked full-time as a paramedic because the follow-up training she had originally planned to undertake to become an advanced paramedic could not begin until later.
The Family Benefits Office refused to pay child benefit for the months of June to August 2023, arguing that the daughter’s initial education had been completed and that she was working more than 20 hours a week. The father took legal action against this decision; the Finance Court ruled in his favour and the Federal Fiscal Court upheld this ruling.
The Federal Fiscal Court’s reasoning: a minimum period of one year
The Federal Fiscal Court (BFH) clarified that training is only considered to be initial vocational training is deemed to be within the meaning of the Act if it lasts for at least one year. The paramedic training does not meet this criterion. Consequently, during the months in question, the daughter had not yet completed her initial vocational training, even though she had already passed the paramedic examination.
The entitlement to child benefit therefore remained in force, even though the daughter was working full-time. Her full-time employment as a paramedic did not affect her entitlement.
Distinction: Paramedics should be assessed differently
The Federal Fiscal Court expressly emphasised that training for the Paramedic Under the Paramedic Act, the full-time programme lasts three years and thus constitutes initial vocational training. Upon completion of the programme, the 20-hour limit would apply.
What does this mean for families?
This decision is of practical relevance to all parents whose children are completing short training courses in the emergency services, the social sector or other fields which, whilst useful for their future careers, last for less than a year. Such short-term training courses do not terminate entitlement to child benefit, provided the child subsequently intends to undertake further, longer-term training.
In individual cases, it is often difficult to draw a clear distinction. Anyone who is unsure whether their child’s education meets the legal requirements should seek tax advice to avoid the risk of having to repay any benefits to the family benefits office.
Source: BFH press releases
This article was created with the help of AI and has been editorially reviewed.
