Certain tax benefits for dependent children who are not part of the applicant's household
Last update
Who is concerned
Resident or non-resident taxpayers who do not live with their children but who pay for their maintenance, education or vocational training expenses, may claim an income tax allowance for extraordinary expenses (abattement de revenu pour charges extraordinaires - CE).
As of fiscal year 2017, if both parents and the child reside in the same dwelling, they are not eligible for the CE allowance.
Prerequisites
The child support paid must represent the main expense for the child's maintenance, education or vocational training costs.
The applicant taxpayer must not be entitled to any form of tax reduction, which is reserved for children who are part of their own household.
If the children concerned are over the age of 21 on 1 January of the taxation year, they must continue, during the taxation year, a full-time study programme covering a duration of more than one year.
If the child has an own income exceeding the social minimum wage by 60 %, no income tax allowance for extraordinary expenses may be claimed.
How to proceed
Amount of income tax allowance for extraordinary expenses
The deductible expenses cannot exceed the expenses actually incurred, nor EUR 4,020 per year and per child.
Requesting the income tax allowance
If all conditions are met, the taxpayer can deduct the expenses in one of the following ways:
- registration of the expenses on the tax card (page 6 for residents and page 2 for non-residents): the application must be renewed each year for as long as the conditions are satisfied;
- the income tax return (page 15);
- the adjustment of withholding tax by way of annual adjustment (page 6 for residents and page 2 for non-residents);
- the married salaried taxpayer or pensioner (resident or non-resident treated as resident) can declare the amounts paid in the application for simulation or individual taxation / RTS rate in order for them to be taken into account when establishing the projected tax rate on their tax card.
Supporting documents
The taxpayer is requested to attach all necessary documents proving the expenses claimed.
The Luxembourg Inland Revenue (Administration des contributions directes - ACD) reserves the right to request additional supporting documents as part of the process of verifying any information, statements, applications, declarations, claims or appeals submitted to its services.
Online services and forms
Who to contact
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Luxembourg Inland Revenue (ACD)
- Address:
- 33, rue de Gasperich L-5826 Hesperange Luxembourg
Please click on the link above to find the competent department.
Related procedures and links
Procedures
Links
Further information
sur le site de l’Administration des contributions directes (ACD)
Further information
Consult the current social parameters.
Legal references
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Loi modifiée du 4 décembre 1967
concernant l'impôt sur le revenu
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Règlement grand-ducal modifié du 31 décembre 1998
portant exécution de l'article 127, alinéa 6 de la loi modifiée du 4 décembre 1967 concernant l'impôt sur le revenu
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Circulaire LIR n°127bis/2 du 7 août 2017
Abattement de revenu imposable pour charges extraordinaires en raison des enfants visés à l'article 123, alinéa 1er L.I.R., ne faisant pas partie du ménage du contribuable (abattement pour enfants à charge)
