US assistance for a pensioner in Germany during the pandemic gets approved by a court to be reduced by a social welfare office.
In May 2021, a woman from Hanover received a $1400 (approximately €1300) payment from the US government as part of a stimulus program. This payment was considered taxable income by the German court due to it not being designated for a specific purpose. If it had been earmarked for a specific purpose, it would have been a non-taxable payment.
This woman, who was born in 1940, also gets a monthly pension of around €560 from the German pension insurance and approximately $290 (€270) from the US pension system. Additionally, she receives supplementary benefits from the German social welfare office for the elderly.
The social welfare office treated this US government aid as income and reduced her supplementary payments for six months. The woman then took legal action, claiming that it wasn't income but rather a special aid for unusual circumstances. She also argued that the reduction of her supplementary benefits was overly harsh for individuals in her age group.
Despite her claims, the court upheld the social welfare office's evaluation of the situation. This stimulus payment by the US, in the form of a tax refund, was part of initiatives to reimburse pandemic expenses and support the growth of the US economy through increased consumption. Since the overall goal of economic support was not a targeted purpose, the court decided.
The court's decision had the woman's supplementary benefits lowered by the social welfare office.
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Source: www.stern.de
