Anyone who chooses a job or child can use a wide range of childcare options in Germany. The state bears the costs of childcare in part, but it also bears the parents themselves in part. Parents can deduct the childcare costs from tax. Employer benefits for the accommodation and care of employees’ children who are not required to attend school are also taken into account for tax purposes. If you want to return to work after the birth of children, you can count on support.
Assumption of costs for parental contributions
As a rule, parents have to pay contributions for childcare in a daycare center or in day care for children, which vary from region to region and / or depending on the institution. Depending on the federal state, certain regulations apply to the assumption of costs and their requirements. The district, the city or the municipality determine the amount of the day care allowance. A possible assumption of costs is based on this. The height can be dependent
on parents’ income,
on the number of children in the family and
In special cases, the youth welfare office pays all or part of the costs. There are separate requirements for the assumption of costs for day care for children. Day care must be suitable and for the child may be required. Likewise, the youth welfare office must have arranged the day care worker or check with a private placement whether the person is suitable for day care.
Childcare costs are taken into account for tax purposes, regardless of whether they arise from a child’s visit to a daycare center, from a childminder or from childcare in the parents’ household. And at a considerable amount! However, the following requirements must be met for this:
As a rule, the following applies: Parents can take two thirds of their children from birth to the age of 14 Childcare costs claim for tax purposes. Up to a maximum of 4,000 euros per year and child!
Couples in employment, where both partners are employed, and single parents can take advantage of these tax advantages such as advertising costs or business expenses.
If the single parent or partner is sick, disabled or in training and the others who are gainfully employed or also sick, disabled or in training have the same options within the framework of special expenses.
Childcare as a household service
For all other parents, e.g. if one partner is employed and the other is at home, the same applies, but only for their children aged three to six years (3rd to 6th birthday). For all other children, however, these parents can deduct childcare costs as part of so-called household-related services from the tax if they have their child looked after in their own household. Here, 20% of the childcare costs – up to a maximum of 600 euros – are taken into account as a deduction from the tax liability. This only applies if it is not a job that is subject to social security contributions or a minor employment. The other legal requirements of the income tax law must also be met.For employment that is subject to social security and marginal employment: if childcare is marginal employment in the private household, 10% of the costs, up to a maximum of 510 euros, can be taken into account to reduce tax. If childcare is more than just marginal employment, 12% of the expenses, up to a maximum of EUR 2,400, can be deducted from the tax liability. Single parents: Tax consideration of childcare costs Employed single parents can deduct two thirds of the childcare costs for their children from birth up to the age of 14, up to a maximum of 4,000 euros per year per child, such as advertising costs or business expenses. If the single parent is sick, disabled or in training, the same options exist, but within the framework of the special expenses.
Employer benefits for childcare costs
Employer benefits for childcare costs
Some employers voluntarily provide employer benefits in addition to wages. If these benefits in kind and cash serve to look after the children of school-age children of the employees in kindergartens or comparable institutions, they can be exempt from tax and social security. Comparable facilities are, for example, school kindergartens, daycare centers, crèches, child minders, nannies and all-day care centers.
The key to tax and social security freedom is that
the benefits are provided in addition to wages
the benefits are only tied to the purpose of accommodating and looking after the children of the employees who are not required to attend school
the employees prove to the employer that they are using the money for childcare costs and
the employer keeps the original evidence as evidence of the wage account.
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