In 2023, the limit on expenses giving rise to the tax credit for childcare has been raised. An increase that is equivalent to 600 euros more.
This is news that should make parents of young children smile. The 2023 finance law, voted in 2022, provided for this year the increase in the expenditure ceiling giving rise to the tax credit for childcare. As a reminder, parents benefit from a tax credit equal to 50% of expenses related to childcare outside the home (nursery assistant, daycare, leisure centre, nanny, crèche, etc.) children under 6 years old on January 1 of the tax year. For the 2023 declaration, which concerns income received in 2022, it is therefore children born after December 31, 2015.
Until now, if parents wanted to benefit from a tax credit equal to 50% of expenses related to childcare, the annual ceiling for these was set at 2,300 euros per dependent child. For taxes declared in 2023 (which relate to expenses incurred from the year 2022), the ceiling of this tax benefit has increased from €2,300 to €3,500as revealed Le Figaro. The tax credit therefore reaches 1,750 euros per child, instead of 1,150 euros previously. It therefore represents an increase of 600 euros. Please note, in the event of joint custody, the maximum amount of the tax credit will be 875 euros per parent.
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Food or entertainment costs are excluded
To benefit from this increase of 600 euros in tax credit, all you have to do is declare your taxes! However, as our colleagues remind us, only salaries and employee contributions paid for custody during the tax year are eligible for this tax benefit. In addition, expenses that are not considered to be related to childcare, namely food, canteen or outdoor activity supplementsare not not taken into account. Finally, the aid paid by the employer or by the CAF (such as the supplement for free choice of childcare) must also be deducted from the expenses.