Among the expenses qualifying for credits and tax reductions are childcare costs at nursery, nanny and even at the leisure center. Eligibility conditions or even spending limits, discover here the information relating to the 2024 2023 income declaration.
Do you have dependent children born in 2017 or in the following years? You have them looked after outside the homein a nursery, a daycare or with a nanny?
The tax administration will allow you to benefit from a tax credit on the amount of tax paid, corresponding to 50% of expenses incurred during the tax year for registration and care in herself of this child under 6 years old. Any public aid (such as the CMG, free choice of childcare supplement paid by the CAF) or private aid received (paid by a works council for example) must be subtracted from this amount.
You are eligible for this tax credit if you have your children looked after:
- by an approved childminder,
- in a collective, parental or family daycare,
- in a daycare,
- in a kindergarten,
- (if your children are under 6 years old on January 1, 2023 but are already in school) in a school daycare or leisure center without accommodation.
In addition to childcare costs strictly speaking (net salary + social security contributions paid to Urssaf), the amount of maintenance compensation (which cover the costs incurred for the purchase or maintenance of educational materials, water, electricity, heating of the childminder’s home) is also taken into account, but within the limit of 2.65 euros per day of reception. However, meal expenses do not have to be declared.
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A tax credit of maximum 1750 euros per child looked after
Since last year, the total expenses taken into account by the tax administration is no longer capped at 2,300 euros per year per child, but 3500 euros, which brings the maximum amount of the tax credit to 1750 euros per dependent child entrusted to a childminder or crèche. In the event of joint custody, this ceiling is halved for each parent, i.e. 1750 euros of expenses covered and 875 euros of maximum tax credit.
Example: you incur 6,000 euros in annual costs to pay your child’s childminder. The free choice supplement available to you represents 4000 euros per year. The expenses taken into account are therefore 2000 euros, and the tax credit will be 1000 euros (500 euros per parent in the case of shared custody).
Note: as This is indeed a tax credit, and not a tax reduction., if the amount of your tax is lower than the amounts you are authorized to subtract, the tax administration will reimburse you the difference. Furthermore, this tax advantage is granted to all parent taxpayers; it is not necessary to have a professional activity to benefit from it.
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The procedure to follow for declaring child care costs outside the home
First step: bring the expenses incurred to the attention of the tax administration, as part of your income declaration. Tax reductions and credits of this type are thus brought together in the section tax reductions and credits of the online declaration, or on the annex form 2042 RICI in the case of a paper declaration.
You must then enter the amount of expenses and the contact details of the beneficiaries. in 7GA boxes (1st child), 7GB (2nd child) and 7GC (3rd child). In the event of joint custody, boxes 7GE, 7GF and 7GG must be completed. In the case of an approved childminder, the amount of expenses is pre-filled, since the tax authorities are aware of them via your declarations. Pajemploi. This is not the case, however, for any daycare or leisure center costs.
New for 2024. The DGFiP now asks you for details of childcare costs for children under 6 years old, when you fill in box 7GA or the following: you can thus indicate all the beneficiaries (nannies) and the amounts of childcare costs for each child, as underlines the tax authorities in its annual press kit.
This tax credit of 620 euros (on average) that thousands of parents forget to claim
Namely, for parent employers, Pajemploi called every year, mid-April, a tax return document which gives the exact amount to report on your tax return. It is this amount that is pre-entered.
If this is the first time you are declaring childcare expenses, consider specifying this at the start of the online declaration, in order to generate the appropriate entry screen. If you forget, you can always go back.
The case of home childcare
Have you hired someone to look after your children at home? Here too, you can benefit from a tax credit for the sums paid for home employment, specifies the tax administration.
Expenses are deductible up to 50% of the costs incurred, within the limit of 12,000 euros plus 1,500 euros per dependent child. In all cases, the increased limit cannot exceed 15,000 euros (unless your child is disabled: 20,000 euros in this case). This ceiling concerns all the personal services you benefit from. If you employ a person for cleaning in addition to your home care employee, it is the total sums spent for these two employees which is affected by the ceiling.
The amount of expenses actually incurred is indicate in box 7DB. The tax authorities have made it easier for you if you use the CESU or Pajemploi to declare your employee, since in this case, this line 7DB is pre-filled. Please note, however: you will need to correct this amount if aid paid by public or private organizations to help with home employment must be deducted.
Only care of children over 6 years old, your home opens rights to immediate advance of the tax credit. For children under 6 years old, you will still have to wait. Initially planned for this year 2024, the immediate advance for the care of young children, at home or outside the home, will ultimately only be possible from July 1, 2026.
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