Personal taxation · Luxembourg
Dependent children and the single-parent tax credit
A dependent child can be relevant to several schemes, each with its own conditions. The single-parent tax credit is not granted simply because you are raising a child: the household, the tax class assignment, the allowances and the amounts already granted via payroll must be examined, among other things.
Financial Services Luxembourg · Licensed accountant · Head of the firm: Mickaël LOC. Editorial update: .
Three separate checks
| Topic | What to check | Do not confuse with |
|---|---|---|
| Child tax reduction | Allocation and conditions for the year | All of the parent's expenses |
| CIM | Parent's situation, home and allowances | An automatic benefit for every single person |
| Childcare costs | Costs borne and conditions relating to the provider | The single-parent tax credit itself |
CIM: key points for 2025
For 2025, the maximum stated in the legislation is EUR 3,504; it decreases with adjusted taxable income between EUR 60,000 and EUR 105,000, and is EUR 750 above that. This amount must still be examined in light of the applicable conditions and reductions.
The allowances taken into account by the scheme can reduce the credit. The legislation distinguishes these from the family benefits excluded from the calculation. The CIM is not granted when both parents share a common home with the child.
Custody and supporting documents
Shared custody requires an examination of the rights allocated and of the documents; it does not automatically make both parents eligible for the same maximum credit. Decisions, allowances and household data must be consistent.
Fictitious example: a certificate already shows a CIM granted by the employer via payroll. The return must regularise the actual entitlement, not claim a second full annual credit on top.
Which procedure?
The tax withholding card, the annual tax adjustment (Form 163) or Form 100 may be relevant depending on your profile and the conditions specific to the scheme. For a non-resident, also examine assimilation to resident taxpayers and the appropriate filing route.
Prepare the household data, decisions, relevant allowances and the certificates showing the credit already granted. None of these amounts should be entered in a public contact form.
The firm’s other tax engagements
Depending on your situation, the firm also handles tax, VAT and payroll, the regularisation of late tax filings and assistance during a tax audit. Fees are listed in the firm’s fee grid.
Official sources and scope
- ACD: consolidated income tax law (LIR), 2025
- ACD: tax classes of resident taxpayers
- ACD: deductions and Forms 100, 163, 164
The rules apply to the year and profile concerned. Examples flagged as fictitious explain a method; they are not an individual validation. The documents and options of your file are covered by a separate engagement.