Tax deductibility of childcare – clarification by the BFH

Special expense deduction for childcare costs – what parents need to know

Childcare costs can be claimed as special expenses for tax purposes within certain limits. From 2025, 80 percent of expenses, up to a maximum of 4,800 euros per child, can be claimed. Until 2024, it was still two thirds, up to a maximum of 4,000 euros. Expenses for services to care for a child who is under 14 years old and is part of the household are eligible.

What counts as childcare

The term childcare is to be interpreted broadly. This includes, in particular, costs for daycare centers, after-school care and similar facilities. However, expenses for lessons, the teaching of special skills and for sporting or other leisure activities are not deductible. These expenses are already covered by the child tax allowance.

Leisure activities are excluded

If the activity is separate from the childcare facility in terms of organization, time and location and the actual leisure activity is the main focus, the costs are not tax deductible. This was also the decision of the Federal Fiscal Court in the case of a one-week sports trip during the summer vacations. The focus here was clearly on the sporting activities.

👉 You can find the full ruling of the BFH from January 23, 2025 here: BFH, Ref. III R 33/24

When an exception is conceivable

The situation could be different if the trip is for younger children and the focus is on childcare. A special expense deduction could then be possible.

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