Whether they are of legal age or minor, children can have their income tax reduced. We explain how to proceed.
You may have started filling out your 2022 tax return as the reporting period opened on April 7th and must end on June 8th. If you have dependent children, adults, or minors, consider reporting them in Box C, “Dependents in 2021” (Form 2042 if reporting on paper), in Box F, and then providing the last and first names of each of them .
Children enable you to benefit from a half portion of additional family quotient, or even a full share from the third child. A non-negligible advantage, since income tax can be reduced taking into account family expenses. It is limited for the year 2022 1,592 euros for each additional half share. But the benefits don’t stop there.
Under certain conditions, you benefit from a Tuition Reduction. The child must not be bound by an employment contract and must not receive any remuneration. For the 2022 tax return, he must be studying in secondary or higher education on December 31 of the tax year, i.e. in 2021. The amount of this tax benefit depends on the level of education:
- Your child is registered at a secondary school: 61 euros
- Your child is registered at the Gymnasium: 153 euros
- Your child is studying on December 31, 2021: 183 euros
Note: In the case of joint custody, the tax benefit is halved. The declaration must be made in boxes 7EA through 7EF (Form 2042-RICI if you are using the paper form).
School support, nanny and crèche
Do you still want to reduce the tax burden at all costs? Now it’s time to take stock of the expenses you’ve incurred in 2021. Some of these qualify for a tax credit:
- Costs for home care, tutoring, etc. Certain expenses of employing a home worker entitle you to a tax credit equal to 50% of the amounts incurred, up to a limit of €12,000 per year, plus €1,500 per related child. The maximum limit is 15,000 euros.
- cost of home care : You are only entitled to an under-six tax credit as of January 1 of the tax year. The tax advantage corresponds to 50% of the committed amounts within the limit of 2,300 euros per child. Report the amounts in boxes 7GA through 7GC.
Think of alimony
In 2021 you may have separated from your spouse or been divorced. This breach resulted in the payment of alimony. Therefore, when declaring your income, you must keep one thing in mind. If you want to deduct the pension paid to the ex-spouse, it is imperative that you take the children out of your tax budget. You can only deduct alimony in this situation.
Think of your adult children too! If they are not able to support themselves and you have paid the rent and the education costs, you have the option of deducting child support up to an amount of EUR 6,042 per child. Maintenance payments must be declared under 6 of the deductible expenses in fields 6EL and 6EM for adult children and 6GU for minor children. The qualifying parent must report this pension in box 1AO.