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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- The woman, residing in Lower Saxony, challenged the reduction at a German court, arguing her case as a pensioner from Bremen.
- The court's decision on the case involved the US aid provided during the Corona pandemic, impacting social welfare in Germany.
- The US stimulus payment, considered part of pandemic relief measures, had a significant impact on the woman's supplementary benefits from the Celle social welfare office.
- The woman's argument at the Court of Law emphasized how the pandemic situation should not be treated as ordinary income, but rather special aid during unusual circumstances.
- Despite the pensioner's situation being unique to her age group, the court, following US policies, decided that the stimulus payment was not earmarked for a targeted purpose.
- The US initiative aimed at reimbursing pandemic expenses and boosting economic growth through increased consumption played a crucial role in the court's evaluation.
- As a result of the court's ruling, the reduction of the woman's supplementary benefits continued to be enforced by the German social welfare office in Celle.
Source: www.stern.de
