Can I also deduct the daycare fees for my children from taxes?
February 17, 2024 | 30,00 EUR | answered by Anneliese Schaaf
Dear tax advisor,
My name is Piotr Mattes and I have a question regarding my tax return. I am a father of two children in kindergarten age and I am wondering if I can deduct the daycare fees from my taxes.
Currently, I am paying a significant amount monthly for the care of my children in the daycare center. As a single parent who is employed, these costs are a big financial burden for me. I have heard that under certain conditions, it is possible to claim the daycare fees on my taxes, but I am unsure if this applies to my situation.
My concern is that I may be missing out on an opportunity to save on taxes by not including the daycare fees in my tax return. Therefore, I want to make sure that I explore all options to minimize my tax burden.
Could you please tell me if and under what conditions I can deduct the daycare fees for my children on my taxes? Are there specific documents I need to provide? And what is the potential tax benefit that I could achieve?
I look forward to your response and thank you in advance for your assistance.
Sincerely,
Piotr Mattes
Dear Mr. Mattes,
Thank you for your inquiry regarding the tax deductibility of daycare fees. As a father of two children of kindergarten age, these costs are indeed a financial burden, and it is important to know whether you can claim these expenses on your taxes.
In general, daycare fees can be claimed as special expenses in your tax return. However, there are certain conditions that must be met in order to benefit from this tax advantage. Firstly, the costs for the care of your children must have been incurred in a state-recognized institution, such as a daycare center. Private care costs are usually not deductible.
Furthermore, it is important that you are a single parent who is employed or in training, and that the care of your children is necessary for work-related reasons. In your case, as a working single parent who pays daycare fees for the care of your children, you meet these requirements.
In order to deduct daycare fees on your taxes, you must provide the relevant proof. This typically includes the monthly fee statements from the daycare center, showing the costs of caring for your children. You should carefully keep these receipts and attach them to your tax return when needed.
The potential tax benefit you can obtain through the deduction of daycare fees depends on your personal tax rate. Depending on your income and tax bracket, you can deduct a portion of the costs as special expenses and thereby reduce your tax burden. However, it is important to note that there is a maximum limit for deductible childcare costs, which is currently 4,000 euros per child per year.
Overall, the tax deductibility of daycare fees can mean a financial relief for you as a single parent. It is therefore worth collecting all relevant receipts and stating them in your tax return in order to benefit from this tax advantage.
I hope this information is helpful to you and I am available for any further questions.
Sincerely,
Anneliese Schaaf
