Can I deduct my childcare expenses from my taxes?
May 9, 2022 | 50,00 EUR | answered by Andreas Stricker
Dear tax consultant,
my name is Erika Falk and I am a single mother of two school-aged children. Due to my professional activities, I rely on having my children in the care of a childminder. Now I am wondering if I can deduct the costs of childcare from my taxes.
So far, I have always borne the costs of childcare myself, as the compatibility of work and family is very important to me. However, these costs significantly impact my monthly budget, and I am wondering if there is a way to at least partially deduct them from my taxes.
I am not sure if childcare costs are deductible at all and what requirements need to be met in order for me to claim them on my taxes. The amount of potential tax benefit is also unclear to me, and I would like to know how to calculate it.
Could you please help me and explain if and to what extent I can deduct the costs of childcare from my taxes? Are there specific documents that I need to provide in order to claim the costs? And what steps do I need to take for this?
Thank you in advance for your assistance.
Sincerely,
Erika Falk
Dear Mrs. Falk,
Thank you for your inquiry regarding the tax deductibility of childcare costs as a single mother. I would be happy to assist you and provide you with all the relevant information.
In general, childcare costs are tax deductible if they are work-related and necessary for you to pursue your professional activities. As a single mother with school-age children in the care of a childminder, you typically meet these requirements.
You can claim the costs of childcare in your income tax return as employment-related expenses. There is a maximum limit of 4,000 euros per child per year that is deductible. This means that you can deduct a maximum of 4,000 euros per year per child for tax purposes.
To claim the costs of childcare, you must provide supporting documents. This includes invoices or receipts from the childminder, showing that you have actually incurred the childcare costs. It is important that the invoices were properly issued and paid in order to be able to claim them for tax purposes.
To report childcare costs in your income tax return, you should fill out the "Anlage Kind" form. There, you can enter and claim the childcare costs. If you are unsure how to correctly fill out the form, I am happy to assist you.
Overall, the tax deductibility of childcare costs as a single mother can provide financial relief for you and help alleviate your monthly budget.
I hope this information is helpful to you. If you have any further questions or need assistance, please do not hesitate to contact me.
Best regards,
Andreas Stricker, Tax Advisor
