Do you have small children? If you have them cared for by a childminder, crèche or drop-in center, you are probably familiar with the child tax credit that is claimed by almost 2 million households. But did you know that you can also benefit from this for your children’s preschool or kindergarten leisure center?
Good news: By peeling off the early childhood statistic, the tax credit for childcare expenses, MoneyVox finds that this tax benefit is fairly well known in families. Almost 2 million households benefit from this tax reduction, which reimburses 50% of the costs incurred by parents up to a limit of 2300 euros. That’s 1150 euros maximum tax credit per year… per child! If you have 3 children aged 1, 3 and 5 who are cared for in a crèche, with a childminder and after school day care, the household can potentially receive more than 3000 euros in tax relief. Even better: in 2023 this upper limit will rise to 3,500 euros or 1,750 euros discount per child.
Childcare tax credit: a bonus of 600 euros in 2023
While waiting for this bonus, how many households are missing claim nothing? Just over 100,000 households, according to our calculations: more than, to be precise 100,000 children in kindergarten attend the day-care center and/or leisure center and their parents do not claim these expenses from the tax authorities, which entitles them to a tax credit.
Yes, your school-age children are also entitled to this discount: all children under the age of 6 attending shared childcare facilities. Parents know that the cost of childcare (municipal, family, parental, etc.) or hiring a childminder entitles them to tax relief. Counting [voir encadr ci-dessous] Show it.
Evening and Wednesday care: lower costs… but also entitled to a tax reduction
But tens of thousands of parents don’t seem to know that day care centers, after-school care centers, day care centers, leisure centers have no housing to cite tax records (1), open the right to the same benefit. Not amazing. When you fill out your income tax return, the salaries declared through Pajemploi will be highlighted: you just have to enter the amount in the field that corresponds to the child in question. However, no amount appears for kindergarten or leisure center! It is up to you to apply for a tax certificate from your municipality and/or the association that manages the reception facility and then claim the amount shown on the tax receipt for tax purposes.
Income tax: How to claim your childcare costs
However, the advances for the evening kindergarten or Wednesday recreation center for family quotient priced services, the actual cost of which is largely borne by the municipality, have nothing to do with the monthly advance funds before the child is 3 years old. But the bill for a couple with 2 Smic, for which the rates are moderate, can still exceed 350 euros a year for a child (2). Or 175 euros possible tax credit per kindergarten child.
Complete and global information should be provided with the initial school registration file
We know that there are a variety of tax incentives for families. But there is indeed an interest in information! reacts Eric Labastie, general secretary of the Parents’ Association of FCPE students. Complete and comprehensive information should be provided with the initial school registration file. Some churches do this. An analysis shared by Johan Jousseaume, training manager of the Confederation of Families (CSF): from one municipality to another, the level of information about the available support will vary greatly. There is a real concern about territorial inequality. And this responsibility cannot lie with the municipality alone.
Beyond the specific case of the pre-school concession, Eric Labastie from the FCPE makes a suggestion: parents go to the school and the town hall to register for the first time. So there should be a file or a website that summarizes all possible help for families. This issue really lacks a clear summary of who is entitled to what. Or an online one-stop shop for collecting resumes.
Failure to take up financial assistance: 25% of eligible households
When asked about the lack of accurate figures on non-use of the after-school tax credit, CSF’s Johan Jousseaume would not be surprised if the phenomenon turns out to be much higher than estimates: for most rights, unemployment benefits, it is estimated that 25% of those eligible Households do not use.
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As for childcare costs, there’s the cumbersome process of applying for tax returns from City Hall or some other organization before declaring they even understand the potential benefit: Many families struggle to understand what a credit is, Judge Johan Jousseaume. The concept of negative tax is not well understood. Translation of the negative tax: which, unlike the tax reduction, benefits all households, including the non-taxable ones. If you are tax exempt and that you are entitled 500 euros tax credit to take care of your 5-year-old child in the evenings and on Wednesdays… then the General Directorate of Public Finances (DGFiP) will pay you. 500 euro.
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The key data of the forgotten tax credit
Exactly how many parents forget to claim the childcare tax credit? Nobody knows. Or, if the data exists… well hidden or expertly archived. In order to quantify the non-use of this tax credit, MoneyVox asked family associations, the CAF, the Association of Mayors of France, the DREES… Zero response numbers apart from a few thoughts.
From the abundance of existing public data on the subject of taxes and early childhood, deductions can still be made using the following figures:
- 2.35 million children under the age of 6 are enrolled in schoolfor 99% enrollment in the 3-5 age group;
- Three out of ten 3 to 5 year olds are entrusted with a receiving device Kindergarten or leisure center, regularly or occasionally. After deduction, that is more than 700,000 kindergarten children who visit these reception centers;
- 1.96 million children under the age of 6 cared for and the state treasury declared a total of almost 900,000 childminders and more than 470,000 crèche places. If we assume that these households claim the tax credit, we can roughly deduce this thanks to the costs pre-recorded in the declaration 100,000 students under the age of 6 who attend pre-school are not reported to the tax office;
- €1,616 in childcare costs for children under the age of 6 on average (without alternative childcare), ie a possible tax credit from 808 euros per child;
- In fact, the advantage of both caps is: 620 euros tax credit on average per household in 2021for 1.81 million households;
- 0.8 euros per hour of activityaverage preschool cost, but this price varies widely by community and family resources;
- 1.93 euros per day for evening reception and 9.71 euros per day in the leisure centeraverage for a control family earning 2 Smic and having 2 school-age children.
Sources: Insee, Drees, CNAF, OFGL, Observatory of the pricing of public services Note on the tariff situation, state formation, etc.
How can you correct your tax return if you forgot to claim that preschool credit?
Are you aware that you have not claimed this tax credit? It is not too late! You have up to and including December 14 to correct your tax return on impots.gouv.fr.
Request the 2021 fee slips from the organization that manages the preschool (Town Hall for public schools or Ogec, mostly in the private sector) and from the one that manages the reception on Wednesdays or even during school holidays. Because the taxpayer must use all means to prove the amount of the custody costs that he actually bore, according to the tax documentation. Please note: meals and canteen costs do not entitle you to a discount. For the 2022 declaration, which relates to your 2021 income, everyone is affected Children born after 01.01.2015. Then complete line 7GA or the following lines if you have multiple young children on the correct My Declaration form. Confirm. The tax authorities will review their calculation and send you a corrective tax assessment before paying you the tax credit due.
Call for testimonials. Do your children attend a recreation center or preschool? And you don’t declare this expense to the tax office every year? We are interested in your statement ([email protected]). Let us know if you were aware that the tax credit applies until your child is 6 years old and if you were informed about this benefit in your municipality.
Forgotten credits and discounts, our file
(1) Official Bulletin of Public Finances (Bofip-Impts).
(2) Public Service Pricing Observatory, Notice on tariff situation, Afigese-Citxia, January 2019.
(3) Recent or most relevant statistics as the case may be. In fact, the magnitudes of early childhood change little from year to year. For example, the child tax credit was on average 620 euros in 2021 and 671 euros in 2020 for 1.81 million beneficiary households in 2021 and 1.74 million in 2020.