What types of childcare costs can be claimed?

Regardless of whether they are work-related or not, you may claim up to 6,000 Euro per child in childcare costs as special expenses. The tax office covers 80 percent of this, up to 4,800 Euro.

It is irrelevant whether the care takes place in your home or elsewhere. The only requirement is that it involves direct care or supervision. Therefore, tutoring, piano lessons, or ballet classes are not considered childcare costs. However, the following are deductible:

• accommodation in a kindergarten, day nursery, after-school care centre, crèche, or with a childminder
• employment of childcare workers, educators, or babysitters in the household
• employment of domestic helpers and au pairs, provided they care for the child
• travel expenses for the caregiver. Also, free board and lodging if no wages are paid.
• Food for the child is not considered a childcare cost. If it is not itemised separately, it must be estimated and deducted.

Care by a relative
Even if a relative looks after your child, the costs may be deductible under certain circumstances. However, this relative must not be entitled to child benefit or the child allowance for the child and must not live in your household, otherwise the tax office will consider the supervision a favour. However, if the grandparents travel to look after their grandchildren, you can deduct the travel expenses incurred from your taxes. You should be able to provide a corresponding agreement.

If you wish to deduct childcare costs, you must not pay the money in cash, but must transfer it. The tax office may require the invoice and, if applicable, the transfer receipt as proof. A receipt from the recipient is not sufficient.

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 01.09.2021, III R 54/20).