From daycare to after-school care, the little ones want to be well looked after. This often costs money. Families can declare part of the cost on their tax return.
Taking care of the children can be quite expensive. Families should know in which cases part of the money can be deducted from their taxes. Up to 4,000 euros in childcare costs per child can be deducted, as Stiftung Warentest explains. "Whether parents pay money for the care of their child or, as with the au pair, provide benefits in kind such as food, is irrelevant – the value counts for the tax," says the article of Stiftung Warentest on Test.de.
What childcare costs can be declared in the tax?
Accordingly, the following costs are considered care costs:
- Contributions to kindergarten, daycare center, home, after-school care and crèche
- Expenses for childminders and all-day foster homes
- Costs for accommodation in a boarding school
- Expenses for holiday care. "The Federal Fiscal Court has yet to decide whether participation fees for a children's holiday camp are taxable (Az. III R 50/17)", however, it says on Test.de.
Declare items in the tax return in the "Attachment Child"
In their tax return, for example, mothers and fathers can enter the respective item in the "Attachment Child". According to the tax experts, reimbursements, for example of travel expenses, can also be deducted if they were incurred by the caregiver while caring for the child. However, the tax office only takes into account the costs "where the pure care of a child is in the foreground".
For children up to the age of 14, parents are allowed to submit bills of up to 6,000 euros for childcare, according to the experts, according to Test.de, two-thirds of which – a maximum of 4,000 euros – per year and child would be recognized by the tax office. The office only accepts amounts paid by direct debit or bank transfer, as is the case, for example, with craftsmen's invoices.
The care of the children is expensive. Part of the costs can be deducted from taxes. (Symbolic image) Marcel Kusch/dpa (archive image) ©
Babysitters, domestic help or au pairs – can childcare costs be deducted?
Even if parents employ a babysitter, childcare costs are incurred, or even with a domestic helper who keeps an eye on the offspring at the same time. If parents pay a maximum of 520 euros per month for the service, they can hire babysitters or domestic help as mini-jobbers, according to Stiftung Warentest. If the scope of the activity and wages exceed the mini-job limit, parents would have to hire domestic help or babysitters subject to social security contributions. The tip according to Test.de: "If a tax consultant helps with payroll, the tax office usually accepts the costs incurred."
0
Also Read
How much savers have on the high edge – are you above the average or below?
READ
There is now more money in the public sector – but how much exactly?
READ
"Child benefit over 18" only on application - In which cases families can continue to count on 250 euros
READ
Heating cost subsidy: Money will be returned for heating oil, wood and pellets from May
READ
The highest-paid mini-jobs: Up to 29 euros per hour possible
READ
Fancy a voyage of discovery?
My Area
What about au pairs? Here, too, the focus is usually on childcare. Before the start of the stay, both sides conclude a contract that regulates how much time and what amount of remuneration falls on childcare. "Parents can deduct this part, provided that they have also transferred it (Fiscal Court of Cologne, Az. 15 K 2882/13)," reads the article on Test.de. Without a clear agreement, the tax office accepts it "if an estimated 50 percent of the effort is estimated for supervision". However, to ensure that nothing stands in the way of a happy au pair stay, the working hours and tasks of the young adults should always be arranged in advance.
Divide the maximum amount of childcare costs between parents
Important: The 4,000-euro limit applies to both parents together – "Married couples who file a joint tax return do not benefit twice," explains Test.de. Married partners who declare their taxes separately are each entitled to half of the maximum amount. However, they could, by mutual agreement, request a different division in the "Child Annex". What is the rule for separated couples? "In the case of separated, unmarried, patchwork families and couples who do not live together, only the person who has paid for it and in whose household the child lives may deduct the costs of care," it says on Test.de. To do this, the tax officials would first look at who it is registered with. "Indications such as child benefit entitlement and custody also point to household affiliation. However, they can be refuted by factual circumstances in individual cases. It is also possible that a child of separated parents belongs to both households (BFH, Az. X R 11/97)."
Nevertheless, the deduction of costs is limited to half the maximum amount in the case of parents who are assessed individually for income tax – unless they should divide the amount differently among themselves. The tip from Stiftung Warentest: "In order for both partners to be able to use their part of the maximum amount, they should – whether married or not – conclude care contracts together and take over the part of the effort that they also want to claim from themselves."
Tax reduction for older children
In the case of children aged 14 and over, childcare can only be deducted as a "household-related service" – which means that the tax office deducts 20 percent of the expense from the tax burden. According to the tax experts, parents could also proceed in the same way with the part of the cost of a domestic help or an au pair that does not cover the supervision of the child. In many cases, families are also entitled to child benefit beyond the 18th birthday of their daughter or son.