Childcare or schooling costs, domestic services, etc. Some expenses lead to a tax benefit, which takes the form of a tax credit (refundable even if it exceeds the amount of tax due) or a tax reduction. However, be aware that most of these increases are capped. And that even though you won’t have to attach the documents for these expenses to your income tax return, you’ll want to keep them for the next three years in case the tax authorities ask for them.
Savings of up to 1,750 euros for each child up to 6 years old. Out-of-home care costs for children under 6 years of age qualify for a tax credit of 50% of their amount, within a limit of 3,500 euros per child from 2023 (1,200 euros more than before), i.e. a maximum of 1 750 euros per child (half in case of joint residence). Grandparents also benefit from it to take care of their grandchildren. These are the expenses of a paid childminder, crèche, crèche, school nursery school or leisure centre. They are without the cost of food and after deduction of family assistance. If you have a babysitter at home, you also get a tax bonus, but for the employment of an employee at home.
The tax authorities will refund you half of the wages paid during the year. The expenses you spend on employing an employee entitle you to tax relief. It will also be awarded to you if these are amounts paid to an employee in the predecessor’s home, if the latter meets the conditions for receiving the Personalized Autonomy Allowance (APA). The list of affected services is defined by the Labor Code: childcare or support, school support, home care, assistance to the elderly or the disabled (meals, shopping, beauty care, pet walking, etc.), housework, small gardening or handyman work …
APA, PCH, childcare: very bad news for tax relief recipients
The tax benefit is equal to 50% of costs up to 12,000 euros. They increase by 1,500 euros per dependent person without exceeding 15,000 euros (20,000 euros if you are disabled or have a disabled person dependent on you). If you are employing an employee for the first time, the ceilings increase to 15,000 and 18,000 euros. Sub-ceilings exist for gardening work (maximum €5,000 per year), computer repairs (€3,000) and small DIY (€500).
Donations to associations: tax cuts strengthened until 2026
Donations to associations and political parties
(1) With the exception of senate and municipal elections in constituencies with up to 9,000 inhabitants. (2) Provision of free meals, care or housing support.
Donating to associations or non-profit organizations allows you to lower your tax bill through a tax deduction. The benefit is capped at 20% of your taxable income, but any excess donation can be carried over to the next five years and then entitles you to a tax reduction on the same terms as originally.
From 61 to 183 euros tax reduction for a child enrolled in school. If your dependent children continue their studies, you get a tuition fee discount of 61 euros per high school student, 153 euros per high school student and 183 euros per child in higher education (half less in case of alternate residence). Children can be on a scholarship or on a compulsory paid internship, but children in an apprenticeship or paid as part of education (study contract, etc.) are not entitled to tax benefits.
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