Attach an adult child or deduct a pension?
From age 18, your child is in principle taxed personally. If he can not maintain himself needs, you can deduct from your income as child support, up to € 5,698 for the year 2011 (Box 6 EL, page 4 of the return). If he still lives at home, you can evaluate flat spending on food and accommodation at € 3,359 and deduct the other expenses you can justify (health, clothing …). Your child will not pay as much tax he has no other income, since the amount of child support remains below the threshold for taxation of a single. If a student job, his wages are, moreover, exempt from tax in the annual limit of € 4,104. The deduction of such support will provide a tax savings varies the tax rate applied to the highest bracket of your income. The maximum saving will be achieved if you reach the portion taxed at a rate of 41%. Then you will save € 2,336 (5,698 × 41%).
The selection criteria
If your child is under 21 or under 25 if a student, you can opt for its attachment to your tax home rather than deduct alimony (then fill part D, page 2). With the key, an additional half-share of family quotient, or a hand if you are at least three dependent children. This tax saving is also, capped and can not exceed € 2336. But you get along with other benefits such as, for example, a tax reduction of € 183 tuition if a student. Especially, the incorporation of your child you will get relief from your tax home, and will play in your favor for the benefits set according to the family income (spending cap of some tax cuts, cap amount of local taxes …). In return, you will be taxed on income earned by your child (his wages are exempt, however, a limit of € 4,104). For all these reasons, there is usually more advantageous to attach a child rather than deduct alimony, unless it affects important personal incomes.
Finally, note that if your child has celebrated his 18th birthday in 2011, you can count on support for the entire year, declaring all income earned in the year. If you do not attach to your home, you can deduct, as alimony, the payments made after his majority but you will lose the additional half-share for the entire year.
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