Among the expenses giving rise to the right to tax credits and reductions are childcare costs at the crèche, at the nanny’s and even at the leisure centre. What are the conditions to meet? What is the ceiling for expenses retained? Our answers and information relate to the declaration of income.
Do you have dependent children in 2016 or in subsequent years? You make them keep, out of homein a crèche, a drop-in center or with a nanny?
The tax authorities will allow you to benefit from a tax credit on the amount of tax paid, corresponding 50% of expenses incurred during the tax year for registration and custody itself of this child under 6 years old. Any public aid (such as the CMG, additional free choice of childcare paid by the CAF) or private aid received (paid by a works council, for example) must be deducted 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 crèche,
- in a nursery,
- in a kindergarten,
- (if your children are under the age of 6 on 1 January 2022 but are already in school) in a pre-school daycare center or a leisure center without accommodation.
In addition to childcare costs strictly speaking (net salary towards + social security contributions paid to Urssaf), the amount of maintenance allowances (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. On the other hand, meal expenses should not be declared.
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A tax credit of 1750 euros maximum per child cared for
New for 2023: the total expenses taken into account by the tax authorities are 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 divided by two for each of the parents, ie 1750 euros of expenses covered and 875 euros of maximum tax credit.
Example: you incur 6,000 euros in annual costs to pay for your child’s childminder. The free choice supplement paid to you represents 4,000 euros annually. The expenses taken into account are therefore 2,000 euros, and the tax credit will be 1,000 euros (500 euros per parent in the event of joint custody).
Note: as this is indeed a tax credit, and not a tax reduction, if the amount of your tax is less than the amounts you are authorized to deduct, the tax authorities will refund you the difference. Moreover, this tax advantage is granted to all taxpayers who are parents, it is not necessary to have a professional activity to benefit from it.
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The procedure for declaring out-of-home care expenses
First step: bring the expenses incurred to the attention of the tax authorities, as part of your income tax return. Tax reductions and credits of this type are thus gathered under the heading tax reductions and credits of the online declaration, or on the appendix 2042 RICI form in the case of a paper declaration.
You must then fill in the amount of the expenses and the coordinates of the beneficiaries. in boxes 7GA (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 it via your declarations. Pajemploi. This is not the case, however, for any daycare or leisure center costs.
This tax credit of 620 euros (on average) that thousands of parents forget to claim
Namely, for employer parents, Pajemploi called every year, mid-April, a tax return document which gives the exact amount reported in your tax return. It is this amount that is pre-populated.
If this is the first time you are declaring childcare expenses, remember to specify it at the beginning of the online declaration, in order to generate the appropriate input screen. If you forgot, you can always go back.
The case of home childcare
Did you hire someone to watch your children at home? There too, you can benefit from a tax credit for the sums paid for home employment, specifies the tax authorities.
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 applies to all personal services from which you benefit. If you employ a person for cleaning in addition to your home care worker, it is the total of the sums spent for these two employees that 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. Note however: you will have to correct this amount if aid paid by public or private bodies to help home employment must be deducted.