Many families want to keep relatives in need of care in their own homes for as long as possible, but…
Register your household help as minijobber and enjoy tax benefits!
What the blog is about:
- Tax benefits for private minijob employers
- Tax reduction at a glance
- Claim back childcare costs
How high is the tax reduction in private minijobs and how can you claim it back?
For the employment of private household help as a minijob, you will receive a reduction of 20% (maximum €42,50 per month or €510 per year) of the total employer costs in the course of your tax return.
This tax benefit can sometimes even be higher than the taxes you pay during the year.
Let us show you an example:
Example 1
Your household help earns €150 a month
This means that the official registration of your household help is even cheaper at the end of the year than the illegal employment with cash payments. Even your minijobber has no taxes, the gross earnings are equal to the net earnings.
Example 2
Your household help earns €520 a month
Childcare costs can be claimed separately
Childcare costs, for example the employer’s costs for a nanny or babysitter as a minijobber, can be deducted from the tax return for children up to the age of 14 as a special expense in the amount of 2/3 of the childcare costs. A maximum of €4.000 per child can be claimed against tax.
Please note that you can only claim either special expenses or the 20% tax reduction for childcare provided by the same employee; you cannot claim both.
quitt provides all necessary documents and information for you to apply for the tax reduction.