EN / PT
Every year, thousands of families in Portugal look for ways to reduce their tax burden and maximise their IRS refund. If you have children, you can benefit from various tax deductions related to education, health, extracurricular activities and babysitting.
At Baby Sisters, we know these expenses represent a significant part of the family budget. That is why we have prepared this updated guide for 2026, with clear information, official values and practical strategies to correctly declare child-related expenses and obtain the best possible IRS refund.
1. What Child-Related Expenses Are Eligible for IRS Deduction?
The Portuguese State allows parents to deduct various expenses associated with their children’s well-being and education. The main eligible categories are:
Education and training – Nurseries, kindergartens, schools, tutoring and educational activities.
Health and well-being – Medical consultations, medicines, treatments and vision correction equipment.
Extracurricular activities – Sports, music, languages and other cultural or recreational activities.
Babysitting and family support – Services provided by registered babysitters and nannies.
2. Education and Training Expenses
Education expenses continue to be one of the areas with the greatest impact on refunds. Eligible costs include:
Nursery, kindergarten and private school fees
Extracurricular enrichment activities
Tutoring and supplementary courses
University tuition fees
The deduction is 30% of education expenses, subject to the annual maximum limit set by the Tax Authority.
3. Health and Well-Being Expenses
Health expenses can be deducted at 15% of the amount spent, with no maximum limit for essential expenses. Eligible items include:
Medical consultations and examinations
Prescription medicines
Glasses, contact lenses and other medical devices
Specialised treatments (physiotherapy, speech therapy, etc.)
4. Extracurricular and Sports Activities
These expenses are eligible when properly invoiced and classified as training. Examples include:
Music, dance or language lessons
Sports activities (swimming, football, gymnastics)
Educational holiday camps
5. Babysitting and Family Support – An Often Overlooked Deduction
Babysitting services provided by registered Baby Sisters professionals are deductible as “family support expenses”. To benefit from this deduction, the invoice must be issued with the family’s NIF and correctly classified.
6. Specific Deduction per Dependent (2026 Values)
In addition to expense deductions, there is a fixed deduction per dependent:
€600 per dependent
€726 from the second dependent, if under 6 years old
7. How to Guarantee the Maximum IRS Refund in 2026
Keep all invoices and receipts with NIF
Use the Tax Portal to declare expenses in the correct category
Simulate your IRS before submitting the declaration
Choose the most advantageous tax regime (joint or separate filing)
Conclusion
Maximising your IRS refund through child-related expenses can represent significant savings for your family. By correctly declaring education, health, extracurricular and babysitting expenses, you can reduce your tax burden and obtain a more advantageous return.
At Baby Sisters we are here to help not only with daily care, but also to optimize your tax benefits. If you need babysitting or family support, our professionals issue valid IRS invoices. Contact us and turn everyday expenses into a saving opportunity.
Frequently Asked Questions
Can I deduct babysitting expenses on my IRS return? Yes, provided the service is provided by a registered professional and properly invoiced.
What is the deduction limit for education expenses in 2026? 30% of expenses, subject to the maximum limit set by the Tax Authority.
Are extracurricular activities always deductible? Yes, when classified as training and properly invoiced.
How do I declare babysitting expenses? On the Tax Portal, under “family support expenses”.