How to declare the nursery for taxes?

If your child is cared for in a nursery in Luxembourg, you can benefit from a tax credit. Indeed, by declaring the childcare costs of the nursery, the State reimburses you a part when you file your tax return.

To declare the nursery for tax purposes, however, several situations must be taken into account: your place of residence, your place of work and the place of care of your child.

 

Declare childcare costs for Luxembourg taxes

 

Childcare costs include expenses incurred when staying with a childminder, a nursery, day center or in an accredited body.

If your domicile is in Luxembourg and you file a tax return, you can declare your childcare costs as extraordinary expenses. Your child must be under 14 on January 1 of the tax year.

The tax reduction is also possible if your child is kept in a nursery in a country of the European Union. For example, if you live in Luxembourg but have your child cared for in a French nursery, you can declare the cost of the nursery on your Luxembourg tax return.

How do I get my childcare costs reimbursed? You must complete box 1519 on your tax return and also attach proof of the actual amount of the cost of childcare.

The Luxembourg administration then takes into account your last income and the number of dependent children attached to your tax household to make the calculation. Depending on these conditions, it calculates the amount beyond which the actual cost of childcare may be deducted. This is called extraordinary charges.

 

What are extraordinary charges?

 

Only childcare expenses considered as extraordinary expenses can benefit from a tax credit.

Extraordinary charges are charges considered unavoidable and which significantly reduce the contributory capacity of the taxpayer. This capacity depends on the situation of the family and the financial situation.

A charge considered extraordinary is also a charge that does not concern the majority of individuals in a similar family situation and financial situation.

Finally, the parents of the foster child only have the right to deduct the childcare costs for which they are responsible. They cannot take into account the costs paid by a health insurance fund or a private mutual insurance company.

You can deduct extraordinary expenses in two ways:

- In real costs: the deduction is therefore equal to the costs that have actually been paid

- By a fixed allowance: the deduction collected cannot exceed €450 per month or €5 per year. Nor can the flat-rate allowance exceed the costs actually incurred.

If the lump-sum allowance is chosen for childcare, it cannot also be chosen for aid or other care costs.

 

Declare childcare costs if you live in France

 

If you are a Luxembourg taxpayer but you live in France, you can also deduct your child's childcare costs. However, these costs may not exceed a ceiling of €1 per child up to the age of 150.

You can deduct these costs whether or not you have income in France.

 

Declare childcare costs if you live in Belgium

 

If you are a Luxembourg taxpayer but live in Belgium, you can deduct childcare costs up to a maximum of €11,20 per day and up to the child's 12th birthday. 

Non-resident taxpayers in Luxembourg must complete a tax return. The deduction of childcare expenses is possible provided that they meet the conditions to be considered as residents for tax purposes. 

Your child can therefore be cared for either in your country of main residence or in the country of your professional employment. You can, whatever the situation, deduct child care expenses on several income tax returns. The deduction limits, however, change.

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