When can I deduct childcare costs?
You can only claim childcare costs if a parental relationship exists. This applies to biological children, as well as adopted and foster children. You cannot claim childcare costs for stepchildren and grandchildren.
Furthermore, the child must belong to your household. This is also the case if, for example, they are in a boarding school and regularly come home. It is important that there is a family home used by the child and that you are responsible for the child's welfare.
In general, you can only claim childcare costs for children under 14 years of age. This age limit is waived only for disabled children.
Note: If the employer provides tax-free benefits for pre-school childcare, the deduction for special expenses must be reduced by the amount of these benefits, as the deduction for special expenses requires expenses that actually and definitively burden the taxpayer financially (BFH ruling of 1.9.2021, III R 54/20).
(2023): When can I deduct childcare costs?
How old can my child be for me to deduct childcare costs?
Until your child's 14th birthday, you can claim childcare costs; after that, you cannot.
For disabled children, there is no age limit if the disability occurred before their 25th birthday. A disability card is sufficient as proof.
(2023): How old can my child be for me to deduct childcare costs?
How do I provide evidence of my childcare costs?
Childcare costs can be proven through invoices and the corresponding bank transfer documents. A receipt from the recipient is not sufficient! Even small amounts, such as to the babysitter, must not be paid in cash if you wish to claim the costs later.
You do not need to include the documents with your tax return, but you must present them if requested by the tax office.
(2023): How do I provide evidence of my childcare costs?
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 for the care. In the case of individual assessment, the partner who incurred the costs can deduct them. If this applies to both, each may deduct their share up to 2,000 Euro. You can also agree on a different allocation.
This can also make sense, as the following example shows:
Childcare costs amount to 5,500 Euro per year. The mother incurs costs of 4,000 Euro, the father pays 1,500 Euro per year. If both partners do not intervene in the allocation, the following picture emerges:
Mother: 2/3 of 4,000 Euro = 2,667 Euro
Father: 2/3 of 1,500 Euro = 1,000 Euro
Since each parent can deduct a maximum of 2,000 Euro, the total amount that both parents can jointly deduct is 3,000 Euro.
If the father and mother agree that the mother may claim a maximum amount of 3,000 Euro and the father 1,000 Euro, they can claim 1,000 Euro more in childcare costs.
It becomes more complicated if you are not married. If you do not live together, the parent with whom the child lives may deduct the childcare costs. Single parents can claim up to 6,000 Euro, just like married couples. However, if you live with your partner without being married, you can split the childcare costs. This is particularly worthwhile if one of you earns little and therefore does not benefit from the tax advantage.
For unmarried parents, the tax office only recognises the costs of the person who signed the contract with the childcare facility. If both of you want to claim childcare costs, you should both sign the contract.
Note: The Federal Fiscal Court has confirmed that in the case of separated parents, the child's household membership is decisive. Section 10 (1) No. 5 EStG does not violate the Basic Law if the childcare expenses of the parent who has not taken the child into their household are covered by the allowance granted to them for childcare and education or training needs (BEA allowance under Section 32 (6) EStG) (BFH ruling of 11.5.2023, III R 9/22). However, there are numerous cases in which the so-called alternating model is practised, i.e. the child lives with the mother for part of the time and with the father for part of the time, and thus has two "household memberships". Who is then allowed to claim the childcare costs? The Thuringian Tax Court has ruled that childcare costs can (only) be deducted by the person who incurred them. The decisive factor is who transferred the childcare expenses to the account of the service provider, for example the kindergarten operator (Thuringian FG, judgment of 23.11.2021, 3 K 799/18). An appeal has been lodged against the judgment with the Federal Fiscal Court (Ref. III R 1/22). Corresponding cases should therefore be kept open.
Note: If the employer provides tax-free benefits for pre-school childcare, the deduction for special expenses must be reduced by the amount of these benefits, as the deduction for special expenses requires expenses that actually and definitively burden the taxpayer financially (BFH ruling of 1.9.2021, III R 54/20).
(2023): For whom do I enter the childcare costs?
