600 euros more per child under 6 years of age reimbursed by the Treasury. This greater boost from the State was not foreseen in the initial version of the budget for 2023, but it was desired by several deputies of the majority whose reform is one of those that remained in the version adopted via the so-called article 49-3 procedure.
This 52% increase is precisely related to the upper limit of the tax credit granted to parents who leave their children in the nursery of their choice or with a carer. It will go from 1,150 to 1,750 euros per year, an amount that may not exceed 50% of the childcare expenses.
In concrete terms, this means that parents who spend €3,500 per year per child to care for them will be entitled to a tax credit of €1,750 compared to the current €1,150. This sum is doubled by two children, tripled by three, etc.
Assistance paid by the tax authorities to non-taxable parents
It should also be remembered that the tax credit benefits all taxpayers, whether or not they are taxpayers. If you do not pay income tax, the tax authorities will transfer this sum to your bank account. And otherwise, the amount that corresponds to them will be deducted from their taxes.
Be careful, however, this State boost does not cover all expenses related to childcare. This applies to amounts paid to a babysitter only if she is approved, but not to food or diapers she may buy for the child she is caring for. As with sums paid to a nursery or a kindergarten, the tax authorities will ask you to deduct canteen expenses.
For children who are sent to recreation centers, the rule to benefit from the tax credit is that they do not sleep there. Finally, parents are not affected by this state aid who employ an au pair or live-in nanny to look after the children. The latter can benefit from the specific tax credit for paid employment at home.
Source: BFM TV
