How to deduct allowance

Do you provide child support to your loved ones? It is up to you to declare the amount to the tax authorities. Don’t assume that any amount paid will be deducted from your taxable income!

For family life! Several provisions of the Civil Code provide for family support. This mutual maintenance obligation exists for parents towards their children and vice versa, but for the benefit of grandparents and grandchildren and vice versa.

However, Generations cannot be avoided: Allowance paid by a child to his grandparents is deducted only if his own parents are financially defaulted or die. Similarly, grandparents can only deduct support from their grandchildren if necessary if the child’s parents are unable to provide support.

Help for needy parents

Family solidarity is not limited to elderly or sick parents. Even if they are young and in good health, you have an obligation to help your parents if their income is insufficient to enable them to lead a decent life. The word food has a wide meaning and it refers not only to cash, but also to food, shelter, clothing, health costs, electricity bills … If you pay these costs directly to your parents, they form a maintenance similar to cash payments. It is up to you to determine the amount that allows your parents to live decently while within reasonable limits. The tax authorities may challenge a portion of the deducted amount if they deem it excess.

A double-edged sword

The allowance works according to the communication ship system: it constitutes a tax deductible from the income of the person who pays it and constitutes taxable income for the person who collects it. If your assisted parents or guardians have other income, it may make them taxable, or at least reduce or even eliminate some of the social benefits they receive, such as housing assistance.

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Divorce, Divorce, Study … Support for Minors or Adolescents

If your minor children are not under your roof, the maintenance you provide to other parents to meet their needs is a deductible expense from your taxable income. The amount of maintenance can be determined by a court decision, in the case of a friendly divorce, by a lawyer’s document, or by agreement between two parents. On the other hand, The law prohibits deduction of any alimony paid for a child living under alternative housing..

Assistance provided to your child over the age of 18 who does not live under your roof is considered exempt from your taxable income when he cannot meet his needs due to his disability or his education, for example. The child may also find himself in need because he is unemployed, without any or very little compensation, RSA or sick. The maintenance obligation per child does not cease at the age of majority or at the age of 25 years.As is sometimes believed: your responsibility to help each other, regardless of age, when he is in need.

Maximum discount for child support

Allowances paid to an adult child can be deducted Within the limit of 6042 euros per yearPer child in need for 2021 income declared in 2022.

Alumni tax return

The tax authorities cannot assume that you owe maintenance to one or more of your relatives. Also, you must declare the amount on your income tax return Box 6 is the title of the deductible expense on page 4 of the paper announcementOr the end of it Step 3 (Chapter At your expense) For Online announcement.

Declaration of income: These are 10 boxes that the tax authorities cannot fill in advance

You will declare these payments in one or the other 6EL or 6EM line For adult children who are not counted as dependent, or 6GU, 6GP, 6GI Where 6 GJ Depends on the parental relationship (minor child, adult child, parent, ex-spouse) and whether it means maintenance as a result of the court decision. Below the box to declare the amount, you must Indicate the name and address of the person receiving maintenance.

First, the declared allowance is deducted from your taxable income. Over the next three years, the tax authorities may compete for maintenance deductions if they consider, for example, that the beneficiary is not needed or the amount is too high. For his part, the person receiving the alimony must declare it to the tax authorities because it is income.

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Transfer: Useful proof

In order to provide all the assistance deducted, you must be able, if requested by the tax authorities, to justify that they have actually been paid and that their beneficiaries need it. It is wise to pay the allowance for the transfer (possibly automated) from your bank account to the beneficiary’s account: if you are asked, you will find proof of easy payment.

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