A little-known tax advantage allows thousands of parents to receive 620 euros on average. However, every year thousands of households do not benefit from it.
An all-too-frequent oversight that is costly for many households. While the spring chore of filing income tax returns was completed at the beginning of June, the 40 million taxpayers who completed it can still correct it. If they forgot to mention an income or a tax credit they have until July 1 to rectify the situation without suffering any sanction from the tax administration.
More than other taxpayers, parents have every interest in verifying the information entered on their tax return. Indeed, families with dependent children can benefit from various tax advantages. Certain tax deductions, such as those linked to daycare costs, are widely known and used by around 2 million households. However, many other benefits remain underexploited, as the majority of parents are unaware of their existence.
It is important to note that the tax credit functions as a “reverse tax.” In fact, it allows the taxpayer to reduce the amount of income tax that he is required to pay to the Public Treasury. In the event that the credit is higher than the amount of tax due, the taxpayer then receives the difference directly. Thus, even households not subject to tax can claim a payment from the tax services. For example, an individual who is exempt from tax, but eligible for a credit of 300 euros, will receive a payment corresponding to this amount at the end of the tax year.
The well-known tax credit for childcare costs for children under 6 reimburses half of the expenses incurred, capped at 3,500 euros per year per child. This can represent up to 1,750 euros in tax credit each year for each child entrusted to a crèche or childminder.
However, this tax credit is not limited to 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. In other words, having your child looked after in the evening, on Wednesdays or during school holidays in a daycare center entitles you to a tax credit. However, thousands of children attend these structures without their parents declaring the corresponding costs to the tax administration.
To benefit from this little-known tax advantage, it is necessary to request a tax certificate from your town hall or the association that manages the reception structure, then report the amount on your income tax return in the boxes provided for this purpose. (7GA and following). Canteen costs are not eligible, only those related to childcare are. If you forget, you can correct your declaration. The tax authorities will then revise their calculation and pay the corresponding tax credit.
In 2021, nearly 2 million households benefited from this tax credit, for an average gain of 620 euros, according to data provided by the Ministry of Finance.
