(2024) For whom do I enter the childcare costs?

The maximum amount of 4,000 Euro applies per child, not per parent. If you are jointly assessed as a married couple, it does not matter who paid the childcare costs. In the case of individual assessment, the parent who incurred the costs can deduct them. If both parents share the costs, each can claim their share up to 2,000 Euro. Alternatively, you can agree on a different allocation.

Example:

Childcare costs amount to 5,500 Euro per year. The mother pays 4,000 Euro, the father 1,500 Euro. Without a special agreement, the following applies:

• Mother: 2/3 of 4,000 Euro = 2,667 Euro
• Father: 2/3 of 1,500 Euro = 1,000 Euro

Together, they can deduct a maximum of 3,000 Euro. However, if they agree that the mother can deduct 3,000 Euro and the father 1,000 Euro, they can claim a total of 1,000 Euro more.

Unmarried parents:

If the parents are unmarried and live separately, the parent with whom the child lives can deduct the costs. Single parents can deduct up to 6,000 Euro. However, if unmarried parents live together, they can split the childcare costs – particularly beneficial if one partner has a low income and benefits less from tax deductions.

Important note:

The tax office only recognises the costs of the parent who signed the contract with the childcare facility. If both parents wish to deduct the childcare costs, both must sign the contract.

The Federal Fiscal Court has confirmed that for parents living separately, the child's household affiliation is decisive (§ 10 para. 1 no. 5 EStG). If the childcare expenses of the parent with whom the child does not live are covered by the BEA allowance, this does not violate the Basic Law (BFH ruling of 11.5.2023, III R 9/22).

Shared custody model:

For parents practising the shared custody model (child lives alternately with mother and father), childcare costs can only be deducted by the parent who actually made the payments (Thuringia Fiscal Court, ruling of 23.11.2021, 3 K 799/18; BFH ruling of 10.7.2024, III R 1/22).

Tax-free employer benefits:

If the employer provides tax-free benefits for pre-school childcare, the deduction for special expenses must be reduced by these amounts, as only expenses that actually financially burden the taxpayer can be deducted (BFH ruling of 1.9.2021, III R 54/20).