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Income Tax - Out-of-Home Child Care (tax credit)

Verified 08 avril 2021 - Legal and Administrative Information Directorate (Prime Minister)

Additional cases ? If the child is kept at home

You can benefit, subject to conditions, from a tax credit for child care expenses of your dependent children or grandchildren under 6 years of age, in case of care outside the home.

Persons

You can get tax credit if you are in one of the following situations:

Child-related conditions

The child must meet the following 2 conditions:

  • Under 6 on 1to January of the taxation year (for 2021 taxation of 2020 income, it must be born in 2014 or later)
  • Be your

Custody requirements

The child shall be kept under one of the following conditions:

  • Registered maternal assistant
  • Children under 6 years old (nursery, day-care centre, school day-care centre, leisure centre, etc.)

  Please note : there is another tax credit where the child is kept at home.

The expenses only concern child care. Food costs are therefore not included.

In addition, the expenses are those you actually incurred. Thus, the child-care benefits must be deducted. This includes add-on to the custody mode paid by Caf and employer-paid support.

The tax credit is equal to 50% amounts paid up to the following limits:

Maximum amount of tax credit and maximum tax credit per child

Maximum

Per Child

Per child, in the case of alternate care

Custody fee to be reported

€2,300 maximum

€1,150 maximum

Tax Credit

€1,150 maximum

€575 maximum

If you employ a mother's assistant, you must report the annual net salary you paid her and add the social security contributions you paid.

If you received the optional childcare supplement, you must deduct it from your expenses.

Example :

Mother's assistant (annual net salary and contributions): €4,500 per year

Add-in free choice of custody: €3,500 per year

Expenditure: €4,500 - €3,500 = €1 000

You must report a child care fee €1 000.

You are entitled to a tax credit €500 (€1 000/2). €

Declaration

You must report the tax credit amounts on your tax return.

Online Declaration

Internet reporting is mandatory if your main residence is equipped with internet access and you are able to make your declaration online.

2021 Online 2020 Income Statement

Ministry of Finance

Before validating your pre-completed return online, you must verify the information provided and, if necessary, correct and complete it. Keep supporting documents for 3 years if requested by the administration.

Paper Declaration

In 2021, you can report your income on paper if you are in one of the following situations:

  • Your main residence is not equipped with internet access
  • It is equipped with internet access, but you are not able to make your declaration online

You will use the pre-completed paper return received between April and June 2021. Depending on your situation, this is the return No 2042 or 2042 C. Declaration #2042 RICI groups major tax credits and reductions.

If you do not receive a print (1st declarationchange of address, change in family situation), you can report online or download the necessary declarations from early May on service-public.fr or www.impots.gouv.fr.

Certain income is to be reported on a separate return. You can also download them online. The main annexed declarations are:

Before signing your return, you must verify the information provided and, if necessary, correct and complete it.

You do not have to attach supporting documents to your paper return unless they are documents prepared by you (such as a detailed list of your actual expenses). However, keep the documents for 3 years if requested by the administration.

If the amount of the tax credit exceeds the amount of your income tax, the excess will be returned to you.

Justification of expenditure

To qualify for the tax credit, you must account for your expenses.

If you employ a licenced maternal assistant, apply for your Pajemploi tax certificate.

You can download it from your online account under the heading "Edit my tax certificates".

Pajemploi en ligne

Central Agency for Social Security Bodies (Acoss)

You do not have to attach the supporting documents to your tax return, but you must be able to provide them to the tax authority upon request.

  FYI : an invoice paid in cash will not be accepted as proof.