What are income-related expenses?
Income-related expenses are expenses that you have for your part-time job or your education. This includes z.B. an apron if you waitress or law books if you study law. So that you don’t have to list everything individually and collect receipts for everything, there is a flat rate for income-related expenses.
What are social security contributions?
Social security contributions are contributions to insurances that serve the social security (z.B. Contributions to pension, unemployment and health insurance).
You feel unfairly treated by your BAfoG decision?
Then you can defend yourself with an objection.
The actual amount you are allowed to earn in a mini-job is calculated as follows:
|In the year||In the month|
|allowance according to the law||3.480,00€||290,00€|
|+ Income-related expenses lump sum||+ 1.000,00€||+ 83,33€|
|= Subtotal||= 4.480,00€||= 373,33€|
|+ 21,3 % social security contributions||+ 954,24€||+ 79,52€|
|= actual allowance||= 5.434,24€||= 452,85€|
What is the tax-free amount if I am self-employed as a freelancer or on a trade license??
For you as a student or pupil, the same formula for calculating the tax-free amount always applies. So you are allowed to earn about 450€ per month. It looks different with your parents or. To your spouse from. You can read more about this in our other article on income imputation for parents and spouses.
BAfoG and side job – what happens if I earn more than 450€?
In principle, you can earn as much as you want while receiving BAfoG for your part-time job. But if you exceed the tax-free amount, this amount will be deducted from your BAfoG.
Also here we have an example for you:
Let’s assume the calculation above: You have a part-time job and an allowance of 452,85€ per month. However, you earn 500€ per month.
|Amount you earn||500€|
|minus. Social security contributions (21,3%)||– 87,80€|
|minus. Flat rate for advertising expenses||– 83,33€|
|= income to be taken into account||= 328,87€|
|= exceeding part of the tax-free amount||= 38,87€> will be deducted from BAfoG|
Another small tip:
If you are insured in the family insurance, you have to pay attention that you are not allowed to earn more than 425€ per month. Because otherwise you slip into the statutory health insurance. You can find all other info in our article on health insurance.
You have child care costs with your BAfoG?
Then you can deduct this amount additionally from your income. This amount reduces your income, so that it exceeds the tax-free amount less.
BAfoG and side job – what still counts as income??
In addition to BAfoG, not only a side job or your self-employment counts as income. but also income from capital assets reduce your BAfoG, if they exceed the tax-free amount. Here, however, you can also deduct the saver’s allowance, just as with a part-time job you can deduct the income-related expenses.
You do an apprenticeship and get salary? This will be fully credited to your BAfoG. Here there is no tax-free amount.
Also an orphan’s pension or orphan’s money are considered as income. In case of doubt, this reduces your BAfoG maximum rate. However, there is also an allowance here. This allowance for the orphan’s pension is 195€ if you attend a vocational school or (technical) school class that does not require a completed vocational training. You are not at such a school or are considered a student? Then this allowance is 140€.
If you receive support from your parents or from your wife/husband, this support will not be taken into account. You do not have to indicate it also in the request.
You have been married before and receive alimony from your divorced husband/wife? However, this support must be declared and may reduce your support.
Tax-free income or the additional income, which does not affect your BAfoG
However, there are also side jobs that only affect your BAfoG at higher amounts. These are the side jobs that are also considered tax free. These are called "ubungsleiterpauschale". If you work for a non-profit organization or support a legal entity under public law, this is considered tax-free income. This includes if you work as a trainer, instructor, educator or supervisor. Also the care of old, sick or disabled people, as well as artistic activities fall under the law.
You teach at an adult education center or are an instructor in a sports club in addition to your studies? Then this lump sum applies to you!
Attention: Exercise instructor activities in a fitness studio, as well as teaching at a private tutoring school do not fall under this flat rate. Because here the goal is the economic success of the company, so they are not considered charitable.
The lump sum is 2.400€ per year. Your income up to this amount can therefore not reduce your BAfoG receipt. Income above this amount must be taxed, just as it is then counted as income.
An example of tax-free income that does not affect your BAfoG:
Example 1: You earn in year 2.000€ as a trainer in a public gymnastics club. In addition, you earn 450€ per month, and thus 5.400€ per year in a restaurant where you wait tables.-> Your allowance for extra earnings is 5.434,24€ per year. Actually, the remaining 1.965,76€ reduce your BAfoG-support. However, these incomes are as practice leader activities originated and fall so to 2.400€ a year under the lump sum for orphans.
Example 2: You earn in the year 2.500€ as a trainer in a public gymnastics club. In addition, you earn 450€ per month, and therefore 5.400€ per year in a restaurant where you wait tables.-> Your allowance for extra earnings is 5.434,24€ monthly. These are almost completely "used up" by your 450€ job. From the 2.500€ as an exercise leader are 2.400€ tax-free. Of the remaining 100 € (2.500 – 2.400), 34.24 € are tax-free (5.434,24€ allowance – 5.400€ earnings). The rest (100 – 34,24 = 65,76€) reduces your BAfoG maximum rate.
BAfoG and side job – changes in income
We are often asked how applicants should declare their income when this is still uncertain. Or what happens if the stated income changes?.
First of all, it is important that you are absolutely honest about your income. If you try to fib and knowingly make false statements, this falls under BAfoG fraud, which is prohibited and will be prosecuted.
Of course, the future income cannot always be stated exactly. Nevertheless, you can estimate how much you will earn from your part-time job.
Very important: If the income you have declared in your forms changes, you must inform the BAfoG office!! For this you can simply write a letter to the office informally, in which you describe the changes. Make sure to write your grant number on the letter!
Misconception about changes in income
Many students and pupils assume that it is more sensible to be pessimistic when there is uncertainty about income. Thus, these indicate a lower income than expected. This tactic is not advisable.
At the end of the grant period it will be determined how much your income actually was. If your income was lower than you stated, you may receive a refund . If it was higher than you stated, you will have to pay back the part of the grant that exceeds the part you are entitled to!
Communicating changes to the office is not only your obligation as a BAfoG recipient, but also protects you.
How does it work with repayment in the event of changes in the part-time job?
Some websites say that you will "definitely get money back" if your income is lower than stated in the BAfoG application. But this is also not a correct statement. Because a change in the decision is made in favor of you retroactively for a maximum of 3 months.
Your income will be lower and you inform the BAfoG office about this? Then you will get a refund only for 3 months, if the low income already existed in these 3 months. In the future you will then receive a higher BAfoG grant.
your income will be higher and you should get less BAfoG? This happens from the month in which your income has increased (so it could be that you have to pay back money to the BAfoG office).