How does the deductibility of childcare costs work?
February 14, 2022 | 45,00 EUR | answered by Anneliese Schaaf
Dear tax advisor,
My name is Luisa Waldmüller and I am a single parent. This year, I incurred childcare expenses for my child for the first time, as I have returned to full-time work. Now I am wondering how I can claim these costs in my tax return.
I have no experience with deducting childcare expenses so far and therefore I am a bit unsure about how to proceed. I want to make sure that I don't miss out on any tax benefits and optimize my financial situation as best as possible.
Could you please explain to me how the deductibility of childcare expenses works? What do I need to consider in order to correctly report the costs in my tax return and benefit from the corresponding tax advantages? Are there specific requirements that I need to meet in order to deduct the costs?
I would be very grateful if you could assist me in this matter. Thank you in advance for your support.
Sincerely,
Luisa Waldmüller
Dear Mrs. Waldmüller,
Thank you for your inquiry regarding the deductibility of childcare costs in your tax return. I understand that as a single mother, you are keen to explore all options to optimize your financial situation.
In general, you can deduct the costs of caring for your child from your taxes if it is childcare related to your work. This means that the care is necessary for you to pursue your professional activities. The costs can be deducted for children up to the age of 14 or until they complete their initial vocational training.
To report childcare costs in your tax return, you usually need a certificate from the care service or caregiver stating the amount of the costs and the period they were incurred. You should include this certificate with your tax return. Additional documents, such as bank statements as proof of payment, can also be helpful.
It is important to note that you have not already claimed the costs elsewhere, such as through tax-free employer benefits or public subsidies. You must also report childcare costs in the "Anlage Kind" section of your tax return and fulfill any additional requirements, such as providing a certificate from the youth welfare office.
If you are unsure about how to report childcare costs in your tax return, I strongly recommend seeking advice from a tax advisor. They can provide you with personalized assistance and ensure that you make the most of all tax opportunities.
I hope this information has been helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Anneliese Schaaf
