A little-known tax advantage allows thousands of parents to receive 620 euros on average. However, every year thousands of homes miss out.
The spring chore of filing taxes ends in a few weeks. Millions of taxpayers are asked to mention in their 2024 declaration the income they received during the year 2023. The declaration campaign is also the time when households can benefit from numerous tax credits thanks to expenses that they carried out during the year.
Parents who have dependent children can benefit from several tax advantages. Certain tax credits, such as that for children placed in daycare, are well known and used by nearly 2 million households. Yet other benefits are much less popularized because most parents are unaware of their existence.
As a reminder, the tax credit is similar to a “negative tax”. Thus, the tax credit allows a taxpayer to reduce the amount of income tax that he must pay to the tax authorities. In the event that the amount of the credit is greater than the amount of tax owed by the taxpayer, then the latter receives the difference directly. In this way, even non-taxable households can benefit from a payment of money from the tax administration. Concretely, a person who does not have to pay tax, but who can benefit from a tax credit of 300 euros, will receive a payment of 300 euros at the end of the year.
The well-known tax credit for childcare costs for children under 6 years old reimburses 50% of expenses, up to a limit of 3,500 euros per year per child. This represents up to 1,750 euros of tax credit per child placed in a crèche or with a childminder each year.
But this tax credit does not only concern care in a crèche or with a childminder. It also applies to after-school daycare costs, daycare centers and leisure centers for children under 6 years old. Clearly, having your child looked after in the evening, on Wednesdays or during the holidays in a daycare center gives you the right to a tax credit. However, several thousand children attend these structures without their parents declaring the corresponding costs to the tax authorities.
To benefit from this little-known tax advantage, you must request a tax certificate from your town hall or from the association managing the reception structure, then report the amount on your income tax return in the dedicated boxes (7GA and following). Canteen costs are not eligible, only childcare costs. If you forget to do this, it is possible to correct your declaration. The tax authorities will then review their calculation and pay the tax credit due.
In 2021, nearly 2 million households took advantage of this tax credit, for an average gain of 620 euros, according to Public Finance figures.
