Taxes 2022. Tax cuts and credit: what are you entitled to?

Some expenses are eligible for reductions or tax breaks. (© Illustrations – AdobeStock – HJBC)

The excavation for the income tax return took place on April 7. Now is the time to look at your taxes. But what about cuts and tax breaks? We do inventory.

Declaration of income: Actu.fr accompanies you

Starting today and for the month, the editor.fr editorial office is mobilizing to help you understand your taxation and file a tax return.
We will offer you a practical article every day so that you can complete these formalities on time or online.

“If you reside in France for tax purposes, you can benefit from certain conditionstax credit or reduction for certain expenses incurred by you or one of the members of your tax household “, read at impots.gouv.fr.

Four types of deductions need to be borne in mind: family-related deductions, housing, domestic help and personal assistance. We have prepared for you in detail:

Family-related deductions

Several special cases within the family are subject to tax deduction.

You can use the deduction for childcare costs:

  • If you keep a child outside your home (nursery or day hospital or approved carer), a tax bonus of 50% of the paid childcare expenses (excluding meals and deductions of family assistance received for childcare) is applied to the expenses you spend on childcare. children under 6 years of age on 1 January of the year of income. These are children born after 1 January 2015 for income taxation in 2021 recognized in 2022.
    The expenses taken into account include salaries and social security contributions paid to the caregiver, the tax page further states.

To indicate this expenditure, it is sufficient to complete the section “Expenditure on childcare for children under six years of age”.

  • If you keep a child at your house : you can use the tax bonus on the amounts paid for domestic work (for more details, see the section on domestic help below).

You can use the deduction for school fees for children:

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  • When your dependent or dependent child is studying high school or university in a public or private facility (December 31, 2021 for income tax for 2021) as of December 31 of the tax year, you can take advantage of the income tax reduction, the tax site states.

To be eligible, it is important that education leads to a degree. In addition, the training must be provided collectively and on a full-time basis in the facility (if necessary with alternating training in a professional environment). Finally, students must not be bound by an employment contract or paid and must be relieved of any obligations during and at the end of their studies.

The amount of the tax reduction is determined as follows:

  • 61 eur per child in lower secondary education (secondary school);
  • 153 eur for a child studying upper secondary education (secondary school);
  • 183 eur per child in higher education.
    In the case of alternating children or with joint duties, the amount of the tax reduction is divided by two.

Deductions related to gifts

If you make donations to associations or if you pay a contribution to most associations or organizations of general interest, you are entitled to a reduction in income tax when donating or paying the contribution. This reduction depends in particular on the amount paid, as indicated on the service-public.fr website.

Your donation must be made to an organization that meets the following three conditions:

  • It’s non-profit
  • He has a corporate purpose and an unbiased management
  • It does not work for the benefit of a narrow circle of people.

Among the organizations concerned are, among others:

  • Works or organizations of general interest of a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural nature
  • Works or organizations of general interest involved in the promotion of artistic heritage, the protection of the natural environment or the dissemination of French culture, language and scientific knowledge
  • Associations or foundations recognized as being of public benefit
  • General interest associations that take concrete steps in favor of press pluralism
  • Corporate foundations (for company or group company employees)

Further details on the amounts and type of declaration can be found at this link.

Deductions for housing

If you have a home, you have different types of tax deductions, which are detailed on the tax website:

Tax breaks related to your main residence:

  • Tax bonus in favor of the energy transition to the actual costs of energy conversion of housing completed more than 2 years ago, which you are the owners, tenants or residents free of charge and which you assign to your main dwelling. More information here.
  • Tax credit provided on interest on a loan for the acquisition or construction of the main housing, canceled for loan offers issued from January 1, 2011. More information here.
  • Tax credit to help people install or replace equipment specifically designed for the elderly or disabled in new or old housing, as well as for work to prevent and diagnose technological risks before this work. More information here.

Tax relief associated with rental investment:

If you reside in France for tax purposes, you may benefit from a tax reduction for certain rental property investments that involve new or similar housing, provided that the conditions attached to the tenant and rental are met.

The tax reduction shall be granted for the first time in the year of completion or acquisition of the dwelling, if later

Here are the relevant types of rental investments:

  • Investment in renting “PINEL” or “DENORMANDIE” : Discounts of 12 to 29% can be obtained depending on the situation and facilities in mainland France or overseas accommodation.
  • Investment for rent “DUFLOT”. : A discount of 18 to 29% can be obtained depending on the situation and facilities in mainland France or overseas accommodation.
  • Investment in renting “SCELLIER”: Depending on the situation and facilities in mainland France or overseas, discounts of 5 to 6% may apply.
  • Investment in rent “CENSI-BOUVARD” (Non-professional furniture tenant): A discount of 11 to 25% can be obtained depending on the situation and location of the accommodation in mainland France or overseas.

Further details on these different scenarios can be found in the summary table on the tax page via this link.

Tax relief related to work from home

You can use the tax credit if you incur “expenses for personal services provided to you in your main or secondary residence in France, whether you own it or not”, read on the tax website.

You can also claim it if you have incurred expenses in the residence of one of your ancestors who qualifies for the Personalized Autonomy Allowance (APA).

In particular, these are family or domestic work performed by part-time or full-time employees, which must be fulfilled in order to benefit from this reduction. Here are the eligible tasks:

  • Childcare;
  • tutoring;
  • Assistance for the elderly or disabled;
  • House maintenance and housework;
  • Minor gardening work;
  • Small services for housekeepers;
  • Computer, internet and administrative assistance services;
  • Care and handling of pets, with the exception of veterinary care and care for dependent persons.

The amounts on the basis of which this benefit is provided may be paid:

  • directly to the staff member providing the services defined above;
  • an organization (company, association or other public or private entity) that provides services to that person
  • to a non-profit or contract organization, such as municipal social assistance centers or domestic help associations, acting in agreement with a social security department or organization.

The tax bonus is equal to 50% of the actual expenses incurred, left within the annual limit of 12,000 euros, or increased.

You can find more information about this tax credit on the tax website via this link.

Tax breaks for personal assistance

Under certain conditions and restrictions, you can use a tax credit for expenses for equipment specially designed to make housing accessible to the elderly or disabled, or for expenses to make housing adaptable to a loss of autonomy or disability.

It covers expenditure paid between 1 January 2005 and 31 December 2020 and incurred at your main residence in France, it is stated on the tax page.

However, a tax bonus is only provided for expenses that allow you to adapt your housing to a loss of disability or disability if you or a member of your tax household meets one of the following conditions:

  • have an invalidity pension of at least 40% (military pension or accident in case of an accident at work);
  • hold a disability card, a disability card, a disability card, a disability parking card or a mobility pass (with a disability card, priority or parking card);
  • suffer from a loss of autonomy, which leads to inclusion in one of the groups of iso-resources (GIR) 1 to 4 intended for the allocation of the personalized contribution to autonomy (APA).

The tax credit rate is set as follows:

  • 40% for the cost of work to prevent technological risks or for expenditure corresponding to carrying out diagnostics before such work;
  • 25% for expenditure on equipment specially designed to make housing accessible to the elderly or disabled and for expenditure on equipment to accommodate accommodation without loss of autonomy or disability.

More details on the dedicated page on the tax website via this link.

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