This tax message is very important for your bank account.
An email from taxes arrived in the boxes a few days ago. This time, it is not to talk about income tax or property tax. However, the message is still of some importance because it will have an impact on your finances in the months to come. It is therefore better to read it carefully to avoid an unpleasant surprise.
“Do you employ home help? Do you benefit from personal services? Do you make donations or pay union dues?” : these are the questions asked by the DGFiP, which also mentions advances on credits and tax reductions. Although the content may seem complex, it is crucial to respond well to the administration.
This e-mail was sent to all those who look after their children under the age of six, whether at home or in a structure, employ home help (cleaning lady, etc.), make donations to associations, or invest in rental real estate. So many situations which make it possible to reduce the tax payable. For these 9 million affected households, the tax authorities provide an advance payment so that the tax reduction does not arrive until after the income tax declaration.
In its message, the tax authorities therefore ask if, in 2024, you have kept these same expenses, donations or investments. If this is the case, in January 2025 you will receive an advance representing 60% of the tax credit received in 2024 (calculated on 2023 expenses). The rest will be paid during the summer of 2025, once the 2024 tax return is completed. No action will have to be taken, everything will be automatic.
On the other hand, if these expenses have decreased or stopped since the start of 2024, it is important to inform the tax authorities now and, at the latest, December 12, 2024. Indeed, if you no longer have use this type of service and you do not report it, you will receive, in January, the same advance as last January.
But it will not be a gift: when you file your income tax return in the spring, the DGFiP will ask you to repay the amount since you no longer use these systems. Enough to result in a big expense if the money has not been put aside. It is therefore better to report the change immediately to the administration.