If you are divorced or have left a former partner with which you have children, you may have already come across child support. It's the contribution you pay to the other parent if you have a child and don't live together anymore. But not everyone knows that you can actually get a deduction for the child support you pay.
Together with the alimony deduction, it is one of the payments that you have to keep track of yourself in terms of getting your deductions. There may be cases where it is automatically reported for you. So exactly when you get deductions, we'll guide you through this article.
In this article, we will cover:
What the child support deduction is
Other conditions you will need to be aware of
Whether you are eligible to receive any deductions
What is child support deduction?
Once you have had children with your partner but have moved away from each other again, you will typically have to pay child support. This mainly applies if the child lives with the other parent, whereby the child support becomes your financial support for the child.
The contribution is typically a monthly payment to the other parent. You can either determine the amount yourself or get it determined for your, for example, by the 'Family Court House' (Danish: 'Familieretshuset'), formerly known as the State Administration (Danish: 'Statsforvaltningen'). You can choose whether you make the payment yourself or through Udbetaling Danmark. If you pay the amount yourself, you have to report the deduction to SKAT yourself. While if you pay through Udbetaling Denmark, you automatically get the deduction. However, it should be noted that if any contributions have been paid outside of Udbetaling Danmark, then you must report them yourself. For example, it may be extra contributions to baptism or confirmation.
The deduction amount is the contributions you have paid minus a yearly rate of e.g. 1.944 kr. in 2020. If you have made any payments outside of Udbetaling Danmark, these contributions must be added to the automatically reported deductions.
In both scenarios there are several essential elements to be aware of that we will go through below.
What else do you need to be aware of?
There are several other elements to be aware of with this deduction:
You are not allowed to live with your former partner or child
You must have 'support obligations' (Danish: 'forsørgelsespligt') in the eyes of the state. That is the case if, for example, you are the parent of the child
You must have a written agreement with the other parent - either done by yourself or through the Family Court House (Danish: 'Familieretshuset')
The child must be under 18 years old
Check to see if you are eligible for any deductions
Deduction for child support is a hidden bonus that people don't know that they can get.
That's why we in Tax Helper have created an easy and intuitive platform where you can easily see if you can get the deduction and get all the way across the finish line of reporting your deduction to SKAT. It is free to try out, and you only pay if you get a tax refund.