Deducting childminder costs from tax
Most parents are aware that childcare costs for daycare centres, nurseries or day schools can be deducted from their taxes, . But did you also know, , that you can claim childcare provided by a nanny, childminder, babysitter or grandparents as a deduction on your tax return, if certain conditions are met?
However, both the conditions and the maximum amount that can be deducted from tax per child, are regulated differently at federal and cantonal level.
Direct federal tax
In the case of direct federal tax, single-parent families, married couples and cohabiting couples can deduct proven childcare costs up to a maximum amount of currently CHF 10,100 per child per year. This applies to all children up to the age of 14. The condition for this is that the children must live in the same household and be subject to the taxpayer's maintenance obligation. In order for the external caregiver of the children to be tax deductible, both parents in couples must also be employed, in education or vocational training or unable to care for the children due to serious illness, accident or disability. It must be possible to prove this and be comprehensible to the tax authorities. Furthermore, in the case of part-time work, only the proportion of childcare that both parents take up due to gainful employment or other absences (see conditions above) can be deducted.
Cantonal taxes
Due to the different cantonal regulations , both the amount of the maximum external childcare deduction (from CHF 3,000 to CHF 17,500), and the conditions and age limits vary for cantonal taxes. In this respect, no standardised statement can be made regarding the tax deduction of third-party childcare costs for cantonal taxes. Please find out about the cantonal regulations that apply to you.
Childcare by nanny or childminder
You have probably signed a written childcare contract with your childminder anyway . In the case of a nanny, we also strongly advise you to record agreements made in a employment contract . This contract can then also serve as corresponding proof of external childcare for your tax return. In addition, evidence of the actual costs must be attached to the tax return, e.g. a corresponding list of wage transfers. Please note: Only the pure childcare costs are deductible. Costs, incurred for catering for the children during the childcare period, are regarded as living expenses and cannot be deducted.
Childcare by babysitter
Childcare costs incurred by a babysitter can be deducted, if they are incurred due to employment, education/professional training or illness/accident/disability. It must be possible to prove this and be comprehensible to the tax authorities. If the babysitter is used for childminder services, to go out in the evening or to pursue other leisure activities, this cannot be deducted from tax. It is important to note, , that the actual costs must be substantiated by receipts. If you do not transfer the money to the babysitter, but pay it out in cash, it is best to create a receipt pad for this, with which the receipt of the money is confirmed by the babysitter with a signature. It is also advisable to document the day and time of the caregiver, in order to be able to provide proof in the event of an emergency.
If you employ your babysitter as part of a so-called pocket money job, please also bear in mind that the total salary in a calendar year must not exceed CHF 750. Otherwise social insurance contributions will also be due for this employment relationship.
Childcare provided by grandparents
If the above-mentioned conditions (employment, further education or illness) are met and the grandparents do not live in the same household, even childminder services provided by grandparents can be deducted from tax, if the childcare services are paid for. However, you must then submit a statement of costs for the payments made with your tax return as proof and enclose the corresponding payment receipts. And the grandparents must declare the total amount received for the caregiver as income on their tax return and thus pay tax on it as income.