When can I deduct childcare costs?
You can only claim childcare costs if there is a parental relationship. 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).
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 children with disabilities, there is no age limit if the disability occurred before their 25th birthday. A disability card is sufficient as proof.
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 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.
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 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).
For whom do I enter the childcare costs?
