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Daycare child in Berlin: Be careful with the tax return
Photo: Annette Riedl / dpa
Costs for childcare can no longer be claimed as tax-reducing special expenses if the employer has reimbursed them tax-free.
Because the parents are then no longer economically burdened, as the Federal Fiscal Court (BFH) decided.
Parents who spent 4265 euros on their child's kindergarten attendance in 2018 complained.
The father's employer reimbursed this tax-free.
Nevertheless, the couple included the daycare costs as tax-reducing special expenses in their income tax return.
The tax office did not accept this.
"Expenses" only in the case of economic burden
According to the law, two-thirds of the »expenses« for childcare can be claimed as special expenses for tax purposes, up to a maximum of 4,000 euros per child.
However, this only means expenses with which the parents are “finally economically burdened”, the BFH ruled.
In addition to the purpose of the provision, the word "expenses" also refers to this.
However, such an economic burden on the parents does not exist if the employer pays for the daycare costs tax-free and earmarked.
rai/AFP
