How and when are disabled children taken into account in the tax return?
A disabled child is taken into account for tax purposes if they are unable to support themselves due to a physical, mental, or emotional disability. It is also crucial that the disability occurred before the child's 25th birthday. In this case, they can be considered for tax purposes without any age limit. The tax consideration applies to the following points:
Disability allowance
Depending on the degree of disability, each disabled person is entitled to a disability allowance, which covers all ongoing, typical additional expenses directly related to the disability. This amount (between 384 Euro and 7.400 Euro) is also available to children. Parents can have the child's allowance transferred to them.
Care allowance
In addition to the disability allowance, you can claim the care allowance. In 2021, the care allowance for home care was doubled for care level 4 or 5, and a new allowance was introduced for care levels 2 and 3. The allowance amounts to:
- for care level 2: 600 Euro
- for care level 3: 1.100 Euro
- for care level 4 or 5 or helplessness: 1.800 Euro
Exceptional expenses
Costs arising from your child's disability, such as accommodation in a home or the costs of an outpatient care service, can be deducted as exceptional expenses in the tax return.
This is only worthwhile if the costs are much higher than the disability and care allowance, as a reasonable burden is deducted when claiming the costs as exceptional expenses, and you must also forgo the two allowances.
Child benefit, child allowance and BEA allowance
You can also receive child benefit for your disabled child beyond the age of 18 or 25 or use the child allowance and the allowance for care, education, or training needs (BEA allowance) if your child's disability occurred before the age of 25. At the same time, you are also entitled to further tax benefits linked to child benefit for disabled children, such as the child supplement for pension provision.
Childcare costs
Parents can deduct up to two-thirds of their childcare costs, a maximum of 4.000 Euro per child, as special expenses. This also applies to non-disabled children up to the age of 14. For disabled children, you can also claim childcare costs beyond this. The proof is usually the disability card, the notice from the pension office, the pension notice, or a medical report. The disability must have occurred before the age of 25.
