Working mums to get tax rebate for last year's nursery school fees

A recent change in income tax legislation means mums with jobs or who were self-employed in 2018 can offset playgroup or Kindergarten costs, provided their children went to an authorised centre and were aged three or under, right from birth.

The €1,000 tax deduction applies to each child, and is in addition to the €1,200 deduction they already receive – the equivalent of €100 a month, but paid between six and 18 months in arrears – per child under three.

This tax break can be applied for even if the child is now three or over, up to a month before he or she starts the second year of reception classes at school.

Children normally start school in the September after turning three years old, but most go to nursery school right up until that date.

Mums do not need to take any action, according to the new legislation – nursery schools themselves are required to present a declaration, known as Form 233, about the children who attended their centre and the costs involved to their caregivers.

They are required to present this form, which can be handled by their accountant or gestor, by Friday, February 15 this year.

After 2019, the declarations will be needed before the end of January along with all other tax-related information which companies and the self-employed need to present to their accountants in the first month of each year.

Form 233 should include costs of enrolment and registration, plus that of all attendance and food provided to each child.

Mothers are specifically referred to, since this tax deduction is considered an extension of maternity benefits, but can also apply to fathers or to adoptive or foster parents or any other official guardians.

It applies whoever has paid the nursery fees – even if parents' companies fund them as part of a perk of their jobs, but in this case, the tax return amount will go to the firm instead.

Parents cannot claim tax rebates on nursery fees where these have been paid for out of grants or benefits, normally provided by the social services or charities.

Although no additional action is needed by parents – at least until annual tax declaration season starts in late April or early May – they are advised to mention the matter to their children's nursery school to ensure that the owners or management are aware of the new legislation and have arranged to present Form 233 for each family.

Photograph by Madrid regional government