Childcare costs tax consideration

Childcare costs for children can be deducted as special expenses. The expenses for the care of a child belonging to your household who has not yet reached the age of 14 or who is unable to support himself due to a physical, mental or emotional disability that has occurred before the age of 25 can be taken into account as special expenses up to 2/3 of the care costs, a maximum of 4,000.00 euros per child.

Income tax return, attachment child, Application for a reduction in income tax if the childcare costs are to be taken into account when deducting income tax. At the request of the tax office: Invoices (transfer receipts about the childcare costs incurred or, in the case of an application for a wage tax reduction, to substantiate the expenses that are likely to arise. The childcare costs must be proven by an invoice as well as the payment to an account of the service provider (by bank transfer or cheque). The invoice and proof of payment must be presented at the request of the tax office. Cash payments and cash cheques cannot be accepted. The following are also considered "invoices": the employment contract for an employment relationship subject to social security contributions or a mini-job, the fee notice (e.B. about the kindergarten fees to be paid), a receipt (e.m. about ancillary costs for care), in the case of au pairs, the au pair contract, which shows what proportion of the total expenses is attributable to childcare.


The forms are available at all tax offices. Furthermore, the corresponding forms are available for download on the homepage of the State Office for Taxes.

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Preconditions
The special expense deduction is only possible for a child who is related to you in the first degree or is a foster child with whom you are connected by a family-like, long-term bond The child must belong to your household, that is, he must live in your apartment or be temporarily accommodated abroad with your consent (e.B. in the case of boarding school accommodation). In the case of non-living parents, the child's declaration of residence is generally decisive for the assignment to the household of one of the parents. You must have an invoice for childcare costs or have a childcare contract. Payment must have been made to the account of the service provider. Cash benefits are not eligible. Beneficiary childcare services Beneficiaries are in particular expenses for Crèche, after-school or kindergarten place, day-care centres, childminders or all-day care centres, the employment of domestic helpers and au pairs, insofar as they look after a child, the supervision of the child in the completion of homework. In addition to the above expenses in money, the beneficiaries are also Benefits in kind, in particular for the accommodation and food of the caregiver (not for the supervised child) in the household Reimbursements to the caregiver, e.B their travel expenses (not those for the child), if the services are listed in detail in the invoice or in the contract Expenses for Lessons (e.B school fees, tutoring or foreign language lessons), the teaching of special skills (e.B computer courses, music lessons), sports and other leisure activities (e.B membership in sports clubs, tennis or riding lessons), the child's meals or travel expenses. Amount of childcare costs to be taken into account Childcare costs are deductible as special expenses in the amount of 2/3 of the expenses, up to a maximum of 4,000.00 euros per child and calendar year. The maximum amount is an annual amount that is not reduced pro rata temporis, even if the conditions for the deduction of childcare costs were only present during part of the year (no twelfth). If, for example, a child completes the age of 14 in the course of a year, the childcare costs incurred up to the age of 14 are to be set at 2/3, limited to the maximum amount of 4,000.00 euros. In the case of unmarried, permanently separated or divorced parents, the parent who has borne the expenses and to whose household the child belongs is entitled to deduct childcare costs. If this applies to both parents, everyone can only claim their actual expenses up to the amount of half of the maximum deduction amount (in the amount of 2,000.00 euros). Something else only applies if the parents mutually choose a different distribution of the maximum deduction amount and report this to the tax office (on the child attachment).

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Last update or date of publication
15.05.2020