You must have bear a very high cost of the pregnancy and delivery if your child is a very recent time, and in a concise frame of time, your child grew to an age of 6 months. Now the situation for you can be really difficult. You have to join your offices because you have to leave your child to the daycare, but you can not afford the costs right now.
Suppose you are also one of them, then you musty first go through the rules and regulations applicable for childcare. Also, you must read that what are the tax benefits that you can get by opting for the childcare.
Understanding the Tax Credit
The first thing you have to look for is to find a daycare center that is the best suited for your child. You can register yourself for the daycare before admitting it to the daycare. If you are a permanent resident of a country, you don’t have to worry too much about the costs you have to bear. A Tax and Customs Administration childcare organizations (Belastingdienst kinderopvangorganisaties) is the amount of tax credit you get depends on the income of yours. If you have less income, then the amount of credit you will get for your childcare will be more, and if your income is high and you can afford, you will get less.
Other factors on which the amount of your credit will depend on:-
- It depends on the number of childcare hours which are required for the child. If your job demands more time of yours, you have to avail of the childcare services for more time. In this case, you have to pay more money to the daycare. In this case, the amount of credit will be high. The report of childcare hours will be submitted by the daycare you have opted for.
- There is a chance that you are unable to get a seat in the public daycare; that is why you have to go for the option of the private daycare. The amount of fees you have to pay in the latter case will be higher. Due to this reason, the credit you will get will be higher.
- There are various types of childcare in the organization’s daycare, the daycare for the infants, playschool, and the after-0school daycare till 12 years. All of these services provided have different fees. The smaller the child, the amount of care they require is more. It affects the cost too and, in the end, the credit you receive.
- There is a bar set by the government financial organization regarding the maximum number of hours for which the credit will be provided. As per rules, you can only avail of the allowances of a maximum of 230 hours per month. Above that, you have to pay for the daycare from your pocket.
The finance ministry of the country handles all the process regarding the childcare allowances. There is a report that your daycare has to submit to the ministry to keep a record and allot you the allowances. The government’s best initiative for the tax-payers which covers around 94% cost of the daycares.