The time for the 2023 declaration of 2022 income is approaching. Kick off: Thursday 13 April. As every year, the declaration concretizes some tax novelties. This is the case for the childcare tax credit, which has benefited from a very significant increase.
To carry 3500euros per child charges the ceiling of tax credit for child care expenses under 6 years old, against 2300 euros today: here is the brief summary of the amendment tabled at the end of 2022 by the deputy Mathieu Lefvre Renaissance (presidential majority, ex LREM) and co-signed by the deputies of the same group. A measure that is certainly expensive, from the point of view of the state budget, but which was nevertheless retained last October in the text of the finance bill for 2023.
As a reminder, in the text on which it exercised its responsibility via 49.3 at the end of 2022, the government retained around a hundred amendments, without retaining certain measures which had nevertheless been voted on by the deputies at first reading.
Budget 2023: APL, property tax, taxes… These new advantages withdrawn by the government
Potentially 600euros additional tax credit
The percentage of the tax credit for childcare costs for children under 6 years old do not change: 50% of expenses incurred each year for childcarebut… For parents who are employers of childminders, nannies caring for a young child in their own home, for those who have access to a crèche, or for pre-school fees for kindergarten children, the impact of this ceiling will be visible quickly.
Because keeping a child at a low age is expensive. Thus, until now, whether you declare 2,500 or 5,000 euros in childcare costs to the DGFiP via the annual income declaration, the tax advantage is the same. To date, in fact, these expenses are capped at 2,300 euros. Result: 1150euros maximum tax credit.
New ceiling of 3500 euros, therefore 1750 euros of tax credit in 2023
This measure adopted within the framework of the 2023 budget raises the ceiling to 3,500 euros per dependent child (except alternate custody). Result: for each tax household declaring childcare costs climbing to the increased ceiling of 3500 euros, the tax credit will be 1750 euros in 2023, i.e. 600 euros more than in 2022! The measure applies for the first time to the 2023 taxation of 2022 income and expenses.
By way of comparison, the home employment tax credit, which includes a wide range of services (housekeeping, gardening, childcare in the parents’ home, tutoring, etc.) is capped at 12,000 euros of expenditure per year, i.e. potentially 6000euros tax credit.
This tax credit of 620 euros (on average) that thousands of parents forget to claim