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Deducting childcare from your taxes: How to do it correctly

2024-03-06T15:18:05.745Z

Highlights: Deducting childcare from your taxes: How to do it correctly.. As of: March 6, 2024, 4:00 p.m By: Carina Blumenroth CommentsSplit Children need to be looked after - if both parents go to work, daycare or kindergarten come into play. In some cases you can get the money back. Many children are looked after by others. The reasons for this are different, for example social reasons so that children can get in touch with their peers.



As of: March 6, 2024, 4:00 p.m

By: Carina Blumenroth

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Children need to be looked after - if both parents go to work, daycare or kindergarten come into play.

In some cases you can get the money back.

Many children are looked after by others.

The reasons for this are different, for example social reasons so that children can get in touch with their peers.

On the other hand, many children have to go to daycare or kindergarten because their parents have to go to work.

You can claim some of the costs incurred for looking after your children in your tax return.

Deducting childcare from your taxes: This is how it works

You can deduct part of the childcare costs from your taxes.

© Lilly/imageBROKER/Imago

You can deduct two thirds of the costs for child care from your taxes as special expenses (in the child appendix).

Every child is taken into account, informs the

Finanztip.de portal.

You can deduct a maximum of 4,000 euros per year per child (under 14 years).

You particularly benefit from this if you have spent 6,000 euros or more on childcare per year.

For a refund, it is important that the tax office can verify that the money was paid.

This can be done, for example, through transfer receipts or invoices from the care person or institution, informs

Stiftung Warentest

.

An invoice from the mini-job center or an employment contract can also serve as proof.

Keep and collect evidence:

You do not have to enclose the evidence with the tax return, but you must present it to the tax office if requested to do so.

It therefore makes sense that you have all the evidence together in advance.

Requirements for deducting care costs

What requirements you must meet in order to be able to deduct the care costs as special expenses:

  • It has to be your child or foster child.

    No deduction is possible for stepchildren or grandchildren,

    Finanztip.de informs.

  • Children must be under 14 years old.

  • The child must live in the household or be registered there.

The age limit does not matter if the child is physically, mentally or emotionally disabled and cannot care for themselves.

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Which costs you can deduct from tax

The

United Wage Tax Assistance

has put together a list of the costs you can deduct from your taxes in connection with childcare:

  • Kindergarten (also bilingual offerings, as care is the priority)

  • crèche

  • day care center

  • daycare center

  • Babysitters and grandparents can also be considered under certain circumstances

  • AU Pair

  • Nanny or nanny

Which costs are not taken into account?

However, not all costs incurred in this context are reimbursable; the focus is actually solely on supervising the children.

The following are therefore not taken into account:

  • free time activities

  • Tutoring

  • Food or accommodation costs

Do you receive tax-free reimbursements from your employer for child care?

In principle, employers can give employees a childcare allowance that is tax- and social security-free.

You must state this in the child appendix in your tax return.

If you receive this subsidy, the deductible reimbursements will be reduced.

Source: merkur

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