Childcare: reductions and tax credits

Tax credit for childcare expenses

If you have your children looked after outside your home, either with an approved childminder, or in a crèche, a day-care center, you can benefit from a specific tax credit. You are entitled to this tax advantage as soon as your children are under 6 years of age on January 1 of the tax year.

If your child is cared for at home, these expenses give you the right to the tax advantage granted in the event of employment of an employee at home, the complement of free choice of childcare, within the framework of the PAJE. You are entitled to it whether you are single, widowed, divorced, separated, married or in a civil partnership. Finally, you can benefit from this credit even if you do not exercise a professional activity.

If you have a child under the age of 7, and another older and / or they are looked after one at home and the other outside, the expenses are withheld per child and the tax credit calculated on the amounts disbursed for each.

What expenses are taken into account?

The expenses taken into account correspond to the amounts paid to an approved childminder, to the crèche, nursery or day-care center. This amount therefore includes the net salary paid as well as certain social contributions.

You must deduct from the declared amount:

– aid paid by the Family Allowance Fund (CAF)

– compensation for childcare costs paid by the employer. This covers part of the salary or contributions of the person looking after your children.

Calculation of the tax credit

The amount of the tax credit corresponds to 50% of the sums paid but is limited to 2300 euros per child.

This amount is also halved in the case of joint custody.

Examples :

• Declaration of a childminder (salary and contributions): 6 euros per year
• Complement free choice of type of care: 4 euros per year collected by CAF
• Expenses to be declared: 2 000 euros (sum less than the ceiling of 2 euros)

Is :

Tax credit: 2 euros / 000 = 1 euros tax reduction

Source: CAF