Employing a home worker: relief turned into a tax credit for working people's childcare and tutoring

Article 70 of the 2006 Amending Finance Act rewrites Article 199 sexdecies of the General Tax Code. Relief for employing a home worker or using an approved provider remains 50% of expenses, capped at €12,000, plus €1,500 per dependent child or household member over 65 up to €15,000, and €20,000 for disabled people. It takes the form of a tax credit, refundable when it exceeds the tax due, for childcare and home tutoring paid by universal service employment cheque by a working single person or a couple who both work; it remains a tax reduction in other cases. The article applies from the taxation of 2007 income. Before its first application, Act no. 2007-290 of 5 March 2007 (Article 60) extended this tax credit to all personal services and to jobseekers (separate entry).