When it comes to taxation, children can provide additional shares which help reduce income tax. Therefore, parents must declare their children to the tax authorities to take advantage of the benefits they provide. The tax rate should then be adapted to your family situation. But how do you properly declare your children for tax purposes?
Declaring minor children
Your minor children are entitled to an increase in the number of family quota shares in the parents’ tax budget. For the tax declaration of minor children, and for the first two of them, parents can benefit from an additional half share. From the third child onwards, they are entitled to an additional share per child. If the parents are married, they must file a joint return. Consequently, the children will automatically add shares to the family to reduce income tax. And for parents who live together, each of them should individually file a tax return. However, the amount of shares having an impact on the amount of tax, it is important to do a simulation. This can help parents find a financial balance. In the event of divorce, the parent who is responsible for the children must file a tax return. He or she can then benefit from the shares that correspond to his or her situation. But if the parents choose alternating custody, they can share the shares of their children.
What about adult children?
If your child has reached the age of majority, he or she becomes fiscally independent. But even in this case, the tax burden for declaring your children is still important, especially if they are still dependent on you, e.g. if they do not have a sufficient income, or if they are students. But if they are of age and have their own income, they can file tax returns independently and are personally taxable. However, you can still include them in your tax household if you need to. Another solution is the deduction of maintenance payments, which is more practical if the child’s income is insufficient. It is therefore important to determine your choices carefully.
Declaring disabled children
A disabled child is always dependent on the parents and in this case, the tax return depends on his/her situation, whether he or she is a minor or an adult, etc. They can also ask to be attached to your household even if they are married. However, they must file their tax return. Likewise, you can claim a tax reduction on the premiums paid under a survivor annuity contract signed in his or her favour. And if he or she is of age, he or she can pay a premium into a disability savings contract and also benefit from a tax reduction.