Can I deduct my childcare expenses in the income tax return?
November 30, 2023 | 50,00 EUR | answered by Ralf Otten
Dear tax advisor,
My name is Oliver Breitwieser and I am a father of two children aged 4 and 6. This year, I incurred a total of 7,000 euros in costs for the care of my children. Since I am employed and my wife also works, we rely on external childcare. Now I am wondering if I can deduct these childcare costs in my income tax return.
I am concerned that the high childcare costs are putting a strain on our family budget and would like to know if it is possible to claim these expenses on my taxes. It would be a great financial relief for us if we could at least get some of the costs back.
Can you tell me if and to what extent I can deduct the childcare costs in my income tax return? Are there specific requirements that I need to meet in order to claim the costs on my taxes? What documents do I need and how do I correctly report the costs in my tax return?
Thank you in advance for your help and support.
Sincerely,
Oliver Breitwieser
Dear Mr. Breitwieser,
Thank you for your inquiry regarding the deductibility of childcare costs in your income tax return. It is understandable that the high childcare costs are a burden on your family budget and you are seeking financial relief. I would like to provide you with all the information you need to determine if and to what extent you can claim the costs on your taxes.
In general, childcare costs can be claimed as special expenses in the income tax return. These are known as "household-related services". Deductible costs include expenses for the care of children under 14 years old by childminders, kindergartens, daycare centers, or other care facilities. The costs for full-time or afternoon care can also be taken into account.
In your case, you have indicated that you have paid a total of 7,000 euros for the care of your children. These costs can be reported in your tax return and claimed as a deduction. It should be noted that the deductible costs are limited to a maximum of 4,000 euros per year and per child. For two children, this results in a maximum amount of 8,000 euros.
To be able to deduct childcare costs on your taxes, you must meet certain requirements. Firstly, you and your spouse must be employed or in training. Additionally, the costs for the care must have actually been incurred and can be proven. For this, you will need an invoice or a certificate from the care facility showing the amount of the costs.
To report childcare costs in your tax return, you will need to fill out the "Anlage Kind" form. There, you enter the total costs and can then deduct the maximum amount of 4,000 euros per child per year. This way, you can claim a portion of the costs on your taxes and reduce your taxable income.
I hope this information has been helpful to you. If you have any further questions or need assistance with preparing your tax return, please feel free to contact me.
Sincerely,
Ralf Otten
