Can I claim my childcare expenses on my tax return?
July 19, 2023 | 30,00 EUR | answered by Quentin Reuter
Dear tax advisor,
My name is Isabel Eiserfelder and I have a question regarding my tax return. I am a single mother of two preschool-age children and work full-time. As I am employed, I have to hire a childminder for the care of my children, which is associated with significant monthly costs.
My question is whether I can claim these childcare expenses in my tax return. I am worried that I will have to spend a portion of my income on childcare, which is causing me financial distress. It would be a huge relief if I could deduct the costs from my taxes.
I have already researched that there are specific requirements for the tax deductibility of childcare expenses, such as the need for childcare due to the parents' employment. As a single parent working full-time, I meet these criteria.
Could you please explain to me in more detail how I can report the costs for childcare in my tax return and what documents I need for this? Are there specific maximum limits for the deductibility of costs and what tax benefits can I achieve through this?
I would be very grateful if you could help me with this question, as it is very important for me as a single mother to take advantage of all opportunities to improve my financial situation.
Thank you in advance for your assistance.
Sincerely,
Isabel Eiserfelder
Dear Mrs. Eiserfelder,
Thank you for your inquiry regarding the tax deductibility of childcare costs in your tax return. As a single mother of two preschool-age children working full-time, you can indeed claim the costs of childcare for your children as a tax deduction.
The requirements for the deductibility of childcare costs are indeed that the care is necessary due to the parents' employment. Since you are a single parent and work full-time, you meet these criteria. You can therefore claim the costs for the childminder in your tax return as special expenses.
To report the childcare costs in your tax return, you usually need an invoice or a certificate from the childminder showing the childcare costs. You should keep these documents safe and be able to present them to the tax office if necessary.
However, there are certain maximum limits for the deductibility of childcare costs. For the year 2021, the maximum limit for children under 14 years is 4,000 euros per child, for children between 14 and 16 years, it is 3,000 euros per child. You can report these amounts in your tax return and deduct them from your taxable income. This will result in tax benefits as your taxable income decreases, thus reducing the tax burden.
It is important to keep all relevant documents carefully to prove, in case of an audit by the tax office, that the childcare costs were actually incurred. I also recommend consulting a tax advisor for any uncertainties or specific questions, as they can provide individual advice.
I hope this information has been helpful to you and I am available for any further questions.
Best regards,
Quentin Reuter
