Taxes: Should You Claim Your Children on Your Tax Return?
Children who have reached the age of majority may continue to be counted as dependents of their parents until their 21st or 25th birthday if they are students, without having to provide proof of financial need.
Including an unmarried adult child on your tax return allows you to keep the same number of tax brackets you had before they reached the age of majority, continue to benefit from the tax deduction for tuition expenses if they were still a student as of December 31, 2023, and benefit from an increase in the maximum allowable expenses for the tax credit for employing a live-in worker.
The tax savings resulting from this classification are capped at 1,759 euros per child for the first two dependent children, and 3,578 euros for each additional child starting with the third, for individuals living as a couple. For single parents, this cap is set at 4,149 euros for the first dependent child, who is eligible for a full share of the family quotient; 1,759 euros for the second child; and 3,578 euros for the third and subsequent children.
Rather than including their adult child in their tax household, parents who continue to support their children after they reach the age of majority may deduct child support payments. This support is deductible regardless of the child’s age, as long as the child cannot support themselves. The deductible amount is capped at 6,674 euros for payments made in 2023. If your child has lived with you for the entire year, you can deduct a flat rate of 3,968 euros for room and board. Other expenses remain deductible at their actual cost, but are limited to 2,706 euros (6,674 – 3,968).
When parents are separated, adult children may be assigned to the household of either parent—not necessarily the one where they habitually reside. However, unlike before they reached the age of majority, the cost of supporting them can no longer be shared between both parents if they were alternating between living at each parent’s home. Once they reach the age of majority, they can be assigned to only one parent. The other parent may, if they continue to pay child support, deduct it from their taxable income, up to a limit of 6,674 euros. However, the parent to whom the child is assigned must then include the child support in their taxable income, also up to a limit of 6,674 euros.
Certain types of income earned by young people are tax-exempt. This includes stipends received for participating in a corporate internship, as well as apprentices’ wages up to 20,815 euros, salaries earned by students under age 26 for work performed during their studies, up to 5,204 euros, and stipends received by young people who have completed civic service or a period of international volunteer work in a company (VIE) or in the public sector (VIA) are tax-exempt. These exemptions can be combined.
