Whose name should I enter the childcare costs under?
The maximum amount of 4.800 Euro applies per child, not per parent. If you are jointly assessed as a married couple, it does not matter which of you 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 2.400 Euro. Alternatively, you can agree on a different allocation.
Example: Allocation of childcare costs
Childcare costs amount to 5.500 Euro per year:
- Mother pays: 4.000 Euro
- Father pays: 1.500 Euro
Without a special agreement, the following applies (80% deductible):
- Mother: 3.200 Euro (80% of 4.000 Euro)
- Father: 1.200 Euro (80% of 1.500 Euro)
- Total deduction: 4.400 Euro
Since each parent can deduct a maximum of 2.400 Euro, only 3.600 Euro would be deductible without coordination.
Tip: If the parents agree on an allocation of 3.200 Euro (mother) and 1.200 Euro (father), 4.400 Euro can be taken into account for tax purposes – that's 800 Euro more.
Unmarried parents:
If the parents are unmarried and live apart, 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 and made the payment. If both parents wish to deduct the childcare costs, both must sign the contract and pay.
The Federal Fiscal Court has confirmed that for parents living separately, the household membership of the child 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 11.05.2023, 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 10.07.2024, III R 1/22).
Tax-free employer benefits:
If the employer provides tax-free benefits for pre-school childcare, the special expenses deduction must be reduced by these amounts, as only expenses that actually financially burden the taxpayer can be deducted (BFH ruling of 01.09.2021, III R 54/20).
