Do I Need to Declare My Child’s Tax Return?

When your child reaches adulthood, questions about their tax obligations may arise. Do they need to file their own child’s tax return? Can they still be included in your tax household? Here’s what you need to know based on different family situations.

Tax Obligations for an Adult Child’s Tax Return

Upon turning 18, a child is typically required to file their own child’s tax return, even if they have not earned any income. However, if they remain financially dependent on you, you may have the option to include them in your tax household. This can provide certain benefits depending on the circumstances:

• Single adult child: You may receive an increase in the number of shares used to calculate your family quotient.
• Married adult child or one with dependents: A tax allowance may apply (for 2023 income tax, the allowance is €6,674 per dependent, including the child, their spouse, and any children).
• Students: Tax reductions are available, such as €153 for secondary school students and €183 for those in higher education.

How to Request Attachment to Your Tax Household

If your adult child wishes to remain part of your tax household, they must provide you with a signed written request confirming their waiver of personal taxation. This document should be kept as it may be requested by tax authorities during an audit.

Eligibility Criteria for Attaching a Child’s Tax Return

An adult child may be included in your tax household under the following conditions:

• They are under 21 years old as of January 1, 2023.
• They are under 25 years old as of January 1, 2023, and are pursuing studies at that time or by December 31, 2023.
• There is no age limit for adult children with disabilities.

If the parents file taxes separately, the child’s tax return can only be attached to one parent’s tax household.

Declaring Attachment for Tax Withholding

Since the introduction of the withholding tax system, you can update your tax information by selecting the option “Manage my withholding tax” and then “Adjust due to an increase or decrease in income.” However, the attachment must still be reported on the annual child’s tax return in section D on page 2.

Alternative Option: Paying Child Support

If your child files a separate child’s tax return and does not earn enough income to support themselves, you may choose to provide financial support, which can be tax-deductible:

• For 2023 income: Up to €6,674 in child support payments can be deducted.
• If your child lives with you: A deduction of €3,968 is allowed without requiring proof of expenses.

If you choose to deduct child support, your child must declare the amount as taxable income. You may need to provide proof of payments and demonstrate their financial need.