How does a childcare expense account work?

Childcare costs

What proof do you need?

In order for you to be able to deduct the childcare costs from the tax, you have to have one made out in your nameInvoices or fee notices can submit. You also have to transfer the invoice amount to the account of the supervisor transferred to have. The tax office does not recognize cash payments and personal checks.

However, you do not have to present the receipts to the tax office until requested. You do not have to enclose any supporting documents with the tax return.

If you are the employer of the person taking care of your children, for example a domestic help as part of a mini-job or an employment relationship subject to social insurance, you must present the employment contract when asked by the tax office.

Distribution of costs in the case of mixed services

In the case of mixed services, you generally need a document stating the costs for the care, support of the children identifies separately. Because only these are deductible. However, you cannot claim expenses for food.

Support you AU Pair both in the household and in childcare, then you have to do your Split expenses. If the employment contract does not specify a certain amount of time, you can flat-rate the one half assign to childcare costs and the other to household-related services.

You should definitely have the au pair's pocket money on their bank account transfer. Because even if the au pair does not have an account at all, tax offices are not allowed to accept cash payments due to the express legal wording (Finanzgericht Köln, judgment of January 10, 2014, Az. 15 K 2882/13).

If the child is attending a kindergarten or after-school care center, a notification is enough the facility where the costs for the care are recorded and a transfer receipt.

Contract with close relatives

If your (in-law) mother or other close relatives take care of your child and the care is paid, then you can deduct these costs from the tax. For this, however, clear agreements must have been made, which you actually implement.

Tip: When the grandma (or another relative) free of charge taking care of the offspring is one Reimbursement of travel expenses possible. You should agree this in writing. For example, stipulate in a contract that the grandmother looks after your child regularly and 30 cents for every kilometer driven Expense allowance gets. The grandma issues an invoice for this, which you pay by bank transfer. Then you can deduct the reimbursed travel costs as childcare costs (Finanzgericht Baden-Württemberg from May 9, 2012, Az. 4 K 3278/11). By the way: the grandmother does not have to pay tax on mere travel expenses.

You must provide tax-free refunds

A employer can grant employees a tax-free and social security-free allowance for childcare.

Tax-free refunds you have to state child in the attachment. You reduce the deductible childcare costs.