Childcare by relatives

Taxes
1

Hello,
here is the time of the declaration 2022 arrived : the first year that I can deduct child care expenses.
I was surprised that it was possible to deduct the costs of care by relatives (grandparents for example).
How to value these costs? given that in common sense, we do not pay our relatives for service rendered

Thank you for your feedback, have a nice day!

2

Hi
In Zurich it says:

For each child who has not yet reached the age of 14, the proven costs (maximum CHF 10,100) can be deducted.

From my understanding, you can’t deduct something that you didn’t pay and also prove based on a work contract.

3

It should be obvious :laughing:

You can check in your tax software from your Canton if there is a fixed price set up like for lunch outside of home and for commute worker :wink: If not, well, next time ask your relatives if you can pay them in order to deduct it from your taxes (it should cost you more than paying the taxes).

4

I believe this is new. I heard they’d been discussing it, but wasn’t aware some Cantons have started.
Do you have a source or example of what they allow you to deduct per day?

and does this deduction need to appear “on the other side” as granny’s income?

5

As requested, see below the screenshot saying it :
image

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6

I’m not going to do it, since I assume they want to have proof and it should also be evident on the taxes of my parents, his grandparents.

Thinking about it though, I wonder, how would they prove that I’m not paying for fuel for my parents to come watch my son? Or for their lunches here? Or for the trips they do with him?

7

Which canton?

I just googled and Neuchatel came up as an example and an invoice is needed. I assume the income would be taxable for the grandparents and AVS may (?) be applicable too

Might need to watch out for employment law too. A nanny that comes to your house would be an employee, minimum wage applies etc

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8

As far as I understand it, it’s still about frais de garde, the cost of childcare.
So IMO even if the family members or close relatives are listed, when there are no costs, there won’t be anything to deduct.

9

A friend of mine has done it for Kanton Schwyz, you will need a proper contract with that family member. And I am guessing all the relevant proof of payments.

10

And they have to declare it as income. So I don‘t know what the net result will be.