Tax credits and deductions include the cost of giving birth to crচেches, nannies and even childcare at leisure centers. What conditions are to be met? What is the maximum limit for retention costs? Our answers and information relate to income declaration.
Do you have dependent children in 2015 or later? You force them to stay out of the house, With a crèche, a drop-in center or a nanny? The tax authorities will allow you to benefit from a tax credit on the amount of tax paid 50% of tax year costs for registration and custody This child under 6 years old himself. Any government assistance (such as CMG, additional free choice of childcare provided by CAF) or personal assistance received (for example, provided by a Works Council) should be deducted from this amount.
You are eligible for this tax credit if you care for your children:
- By an authorized child,
- In a collective, parental or family crche,
- In a nursery,
- In a kindergarten,
- (If your child is under 6 years of age on January 1, 2021 but is already in school) at a pre-school day-care center or leisure center without accommodation.
Strictly speaking, in addition to the cost of child care (net pay per social security contribution to Ursaf), Amount of maintenance allowance (Which includes the cost of purchasing or maintaining educational materials, water, electricity, heating the baby’s home) but also within the range of 65 2.65 per call per day. On the other hand, the cost of food should not be announced.
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Maximum tax credit of 1150 euros per child
The total expenditure taken into consideration by the tax authorities is limited 2,300 euros per child per year, or a maximum of 1,150 euros tax credit For each sheltered child, one child is assigned a calibrator or crche. In the case of joint custody, the ceiling is divided by two for each parent, meaning 1150 euros cost cover and 575 euros maximum tax credit.
Example: You spend 6,000 euros annually on your child’s childminder. The free choice supplement offered to you represents 4,000 euros per year. The cost taken into account will therefore be 2,000 euros, and the tax credit will be 1,000 euros (500 euros per parent in case of joint custody).
Note: As This is actually a tax credit, and not a tax deduction, If your tax amount is less than the amount allowed for your deduction, the tax authority will refund you the difference. Furthermore, this tax benefit is offered to all taxpayers who are parents, without the need for a professional activity to benefit from it.
How to declare out-of-home care costs
Step 1: As part of your income tax return, bring the expenses to the attention of the tax authorities. These types of tax deductions and credits are collected in the form attached to 2042 RICI in the case of online tax deduction and credit declaration or in case of paper declaration.
Then you must pay the amount of the cost and the coordinates of the beneficiaries. 7GA in the box (1st child), 7GB (2nd child) and 7GC (3rd child) 2042 K manifesto. Box related to the child concerned. This is not the case for any day-care or leisure center. In case of joint custody, box 7GE, 7GF and 7GG must be completed.
If you are announcing the cost of childcare for the first time, be sure to mention it At the beginning of the online announcement, to create the appropriate input screen. If you forget, you can always go back.
Prefilled amount? No! Pre-filled only
Pay attention to misunderstandings. To facilitate access to your announcement, data related to the cost of caring for children under the age of 6 and the cost of hiring an employee at home has been announced through a simplified device. Pajemploi and CesuIs Automatically present, Mentions DGFiP in his notice. But are these salaries paid in advance? No. Automatically presented on the side of the box for filling only: If you want to benefit from this tax credit, you must report this amount.
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For example, for employer parents, Pajemploi every year, mid-April, a Tax return documents Which gives the exact amount reported on your tax return. This is the amount that pre-population.
The announcement has had an impact on the withholding tax
Since January 2019, income tax has been deducted at source, directly from wages, pensions, allowances … it does not change anything, however, in terms of access and declaration of tax credit. On the cost of child care.
With this mode of perception, the cutting is done in 2 stages. In mid-January each year, the families concerned receive a deposit equivalent to 60% of the previous year’s tax credit. The rest is transferred in July at the time of tax balance.
If you do not declare child care costs in 2021, you did not receive the deposit in January. So the full tax credit will be paid to you in July.
On the other hand, if you no longer have the childcare costs announced for 2021, especially if your children have reached the age limit, you need to Pay any extra in advance received in January. If the amount indicated in your 2022 tax notice is less than 300 euros, you will have to pay in one installment next September or more if several installments from September to December.
Also, the information provided this year in your 2021 income tax return will be used to calculate the tax credit advance that will be paid to you in January 2023.
In the case of home child care
Have you hired someone to look after your children at home? There, too, you can benefit from a tax credit for money paid for employment at home, the tax authorities point out.
The cost is deductible Up to 50% of the cost, Within the range of 12,000 euros per dependent child plus 1,500 euros. In all cases, the extended 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 hire someone to do the cleaning in addition to your housekeeping staff, the total cost for these two staff members is affected by the ceiling.
The actual cost is Point to box 7DB. If you use CESU or Pajemploi to declare your employee, the tax authorities have made it easy for you, since in this case, the line is 7DB pre-filled. But keep in mind: if the assistance provided by government or non-government organizations to help with home employment must be deducted, you will need to correct this amount.