2025 Tax Return: More benefits for families and single parents

2025 Tax Return: Important changes for families and parents

From the 2025 tax year onwards, a number of tax changes will come into force, designed in particular to ease the financial burden on families. Higher tax allowances, improved tax relief on childcare costs and clearer rules on maintenance payments make careful tax planning well worth the effort.

Childcare costs: an additional 800 euros is tax-deductible

For 2025, parents can claim up to 80 % of a maximum of 6,000 euros – that is, 4,800 euros per child – as special expenses, an increase of 800 euros compared with the previous year. Expenses for crèche, childminders, babysitters, nursery or after-school care are tax-deductible. Travel costs to grandparents providing childcare may also be taken into account, provided there is a written agreement.

Higher child benefit and a higher child tax allowance

The child allowance rises (in the case of joint assessment) to 6,672 euros per child; in addition, each parent receives 1,464 euros to cover childcare, upbringing or education costs. Child benefit increases to 255 euros per month. The tax office automatically checks whether the child allowance or child benefit is more favourable for the parents.

Tax relief for single parents

A new development is that spouses living apart can have the tax relief taken into account for income tax purposes from the date of separation. The conditions are as follows: the person must be single, there must be one child in the household, and they must not share a home with an adult. In subsequent years, tax class II continues to apply.

Maintenance payments by bank transfer only

From 2025, the tax office will only recognise maintenance payments to children or parents in need if they are made by bank transfer. A simple receipt for cash payments will no longer be sufficient.

Basic allowance rises to 12,096 euros

To ensure a minimum standard of living, the basic allowance has been raised to 12,096 euros for single people (and 24,192 euros for married couples).

These changes show that families in particular stand to benefit tax-wise, but they should check in good time which changes will affect their individual circumstances.

Your tax adviser will be happy to help you plan your tax arrangements in the best possible way.

Please note: This article is for general information purposes only and is not a substitute for tax or legal advice in specific cases.