Tax credit for household expenses in 2023 and 2024
Did you know that in 2023 and 2024, you can get tax credit for household expenses for up to 60% for household, caregiving, and nursing work – such as babysitting?
In other words, you get back more than half of the price in taxes, as long as the babysitting agency is found in the prepayment register (don't worry, we are 😎)
How much tax credit can I get?
The bad news is that there is a deductible of €100, meaning you have to pay the first hundred euros entirely by yourself.
The good news, however, is that you can get a tax credit of up to €3,500 per year for caregiving and nursing work! 💰 Thus, you can purchase babysitting for up to €6,000 before you hit the limit.
Households with two adults have double this amount at their disposal: you can get a tax credit of up to €7,000 per year, meaning you can purchase services for €12,000 (that gets you about 500 hours of babysitting from us).
NOTE! If the deduction is less than €3,500, it's advisable to apply for the tax credit for households for just one spouse, as this means the deductible is only subtracted once. 🤓
When do I declare my household expenses?
You can utilize the tax credit for household expenses in two different ways. If you order a lot of babysitting or are just generally impatient, you can update your information on this year's tax card, resulting in an immediate lower tax payment.
If you tend to handle things at the last minute, you can wait until the start of the next year and declare the tax credit for household expenses in your tax return in the spring, when you get your money back as tax reductions. The due dates for the 2023 tax return are May 7, 14, and 21, 2024. Digital natives do this through the MyTax (OmaVero) service, while the more traditional among us fill out form 14A.
What information do I need to declare?
You'll need the following information:
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The company's business ID
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Total amount of the invoice including taxes
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The portion of the work from the total invoice including taxes
You don't need to attach any receipts to the declaration, but remember to keep the invoices and receipts just in case.
Does it sound complicated? We send our clients clear instructions about all of this at the year-end (as clearly as possible), and of course, we are happy to answer any kind of questions! 🤗
When do I tax credit for babysitting?
To get a deduction for babysitting, the help must occur in the family's residence or vacation home. However, care can start by picking up from daycare, and visits to the park or swimming pool are allowed 😊 Private tutoring or other educational activities at home do not qualify for the tax credit, but if the babysitting includes homework help or a language immersion, it doesn't prevent the use of the tax credit for household expenses.
You can use the tax credit for household expenses even if you receive partial or flexible care allowance.
Where can I find eligible babysitting help?
Fill out the form from the link below and let us suggest experienced, interviewed babysitters that are just right for your family 😁
