Sent several weeks ago, this letter is very important for completing your tax return.
For paper lovers, you should definitely not throw it away. For fans of dematerialization, it is a document that is preferable to open in your personal space. In recent weeks, banks have sent paper or electronic letters to millions of customers. Although this could seem like boring documentation, it is nevertheless very important for completing your income tax return. Because thanks to this information, you will be able to check that the tax authorities have not made any errors concerning you.
In your mailbox or in the “Documents” section of your online banking account, you may have received a paper entitled “Single tax form.” This letter, sent several weeks ago, must be read carefully. Indeed, it includes the precise elements to transmit to the DGFiP if you have financial investments which are taxable.
Above it is indicated what interest was received in 2023 on each savings product and what is the amount of tax to be paid on it. Furthermore, the box to be completed in the income tax return form is well specified. With the transmission of data between banks and the tax administration, very often, the relevant lines are already completed on your declaration. The document therefore makes it possible to verify that no error has occurred.
The single tax form does not concern all French people since the Livret A, the Livret jeunesse, the LEP and the LDD, the most popular savings accounts, are not subject to any tax on the interest received. On the other hand, you received it if you hold:
- A PEL (except exceptions)
- A CEL
- An action savings plan (PEA) redeemed less than 5 years after opening
- Life insurance
- A retirement savings plan
- Stocks or shares in companies
At the end of this letter, a short technical sentence calls out: “If you opt for the progressive IR scale, you will need to check the 2OP box in your declaration. This option allows you to benefit from the CSG deduction up to 6.8% of the deduction of custody rights and the 40% reduction on dividends.” Gibberish? Not quite.
Concretely, people who pay taxes on the interest received from the products mentioned above must check this box in only one case: if they declare less than 28,797 euros of income. This allows them to lower the amount of taxes on this interest because it will be taxed at 0 or 11%, compared to 30% if the box is not checked. It’s worth checking out…