The Minister of Solidarity, Christophe Combe, has just announced the establishment of financial assistance for childcare for single-parent families.
[Mise à jour du 21 septembre 2022 à 17h03] Single-parent families who have their children looked after, at home or in a reception structure, will be able to benefit from a new financial aid. This Wednesday, September 21, the Minister of Solidarity, Christophe Combe, announced that theaid for childcare, currently paid by CAF until the child is six years old, will be extended “to single-parent families for children aged 6 to 11 years old”, said the elected official during an interview with the Association of Social Information Journalists (AJIS). This device will be presented in a few days and will appear in the budget of the “Safety”. “It is an extremely strong social measure”, said the Minister, before adding that “30% of single-parent families live in poverty” today in France.
Implementation of the instant tax credit
From September 20, 2022, an extra boost is given to families. In effect, parents of children over the age of 6 who have their children looked after at home can now benefit from the immediate advance of the tax credit. Clearly, families, whether or not they are subject to income tax, can be reimbursed as soon as the service is invoiced to the personal services company. Previously, you had to wait several months to get the refund. This new system comes following the adoption of the Social Security financing law for the year 2022. For the Federation of Services to Individuals (FESP), which represents service provider companies, this simplified measure is an effective way to fight against undeclared work. According to Ursaff, approximately 90,000 families will benefit from it.
Conditions of the tax credit for childcare expenses
The tax credit is 50% of child care expenses (excluding food costs and after deduction of family aid) up to an annual limit of 12,000 euros. Thus, the expenses taken into account include the salaries and social security contributions paid to the childminder. They are limited to 2,300 euros per child cared for (1,150 euros in the case of shared custody). Therefore, the amount of the tax credit cannot exceed 1,150 euros per child, and 575 euros in case of alternating residence. Also remember to deduct the aid received by the Caf, in particular for the additional free choice of childcare. Also to know: expenses related to leisure centers give rise to the same tax credit.
For instance : if your childminder costs 6,000 euros per year, and you receive 4,000 euros from the Caf for the year, your expenses to declare are therefore 2,000 euros, i.e. a sum lower than the ceiling of 2,300 euros. The tax credit being divided by two, it finally comes back to you at 1,000 euros.
How do I deduct tuition fees?
If your child is dependent on you, you can benefit from a tax reduction, as well as if he is of age and attached to your household. For adults, a tax reduction is intended to cover the children’s school fees, if they are continuing their secondary or higher education in a public or private establishment, on December 31, 2022 (for the 2023 taxation of 2022 income). Thus, the income tax reduction amounts to:
- 61 euros per child continuing their studies at college > 30.50 euros in the event of shared custody
- 153 euros per child continuing their studies in high school > 76.50 euros in the event of shared custody
- 183 euros per child following a higher education course > 91.50 euros in the event of shared custody
To benefit from this aid, students must not have a parallel employment contract, nor be paid. They must be free of any commitment during and at the end of their studies.
How does automatic reporting work?
If you have not declared any change of address, birth, marriage or creation of a withholding tax deposit compared to last year, automatic declaration (or tacit declaration) You will then be offered, with income pre-filled by the administration, which you will have to check in your particular space. If the information seems correct to you, you will not have to take any steps. Conversely, depending on your situation, you will have to complete and sign your tax return.
Deduction of child support
- In case of shared custody Following a divorce or separation, you cannot deduct any pension, because you benefit from an increase in the number of shares. On the other hand, in the absence of judgment, you can deduct an amount corresponding to the execution of your maintenance obligation. You must then be able to justify your payments (be careful, the costs incurred by the right of access are not deductible).
If your (adult) child still lives with you
You can deduct alimony if your child is not attached to your tax household for income tax and his income is insufficient (he is continuing his studies or is unemployed). The amount of the deduction is limited to 3,592 euros (double if your child is married or civil partnership). It mainly covers accommodation and food expenses. The total deduction including other expenses such as school fees for example, cannot exceed 6042 euros per child. Moreover, if you only accommodate your child for part of the year, this sum is reduced in proportion to the number of months concerned. If a month has started, it is counted as a whole.
If your (adult) child no longer lives with you
- If you have chosen not to attach your adult child, you can pay him a alimony without hosting it. It can be a pension for a child who is continuing his studies or who is unemployed. Indeed, if his income is insufficient, you can opt for this solution. You just need to provide the proof of alimony payment and your child’s lack of sufficient income. In all cases, an income simulation is possible to find out if it is preferable to attach your child or, if he is of age, to pay him a pension so that he can file his own income tax return. Thus, if you are a couple and you have joint taxation, you can deduct your expenses within the limit of 6,042 euros per child (whether or not they are single), 12,084 euros if your child is single, with children and you support them, or if they are married or in a civil partnership and you help the couple. Your child must also declare the pension that you pay him.
- The amount of the ceiling limit is the same whether you are separated or taxed separately. In this case, each of the parents can deduct their expenses. Note that if only one parent pays the pension to the adult child, the deduction is doubled.
- Unlike the attachment, this deduction is possible, even if your child is over 25 and no longer a student. The alimony deducted is then taxable in the beneficiary’s name. Please note, you will still need choose between the deduction of alimony or the attachment, because it is not possible to benefit from both at the same time.
It corresponds to number of parts from which you can benefit depending on your situation (married, PACS, alone or cohabiting) and the children in your care. Thus, certain cases entitle you to additional shares which will reduce your taxes. For example, if you are a married or PACS couple and subject to joint taxation, you are entitled to 2 shares of family quotient. An increase in shares is then granted to you if you have dependent children (minor or single adult):
- 2 parts from a child for people living alone, against 1.5 shares for people living together. And for each other child, you are entitled to an additional half share.
- For married or PACS couples, subject to joint taxation, two shares of the family quotient are allocated to them, then a half share for each number of additional dependent children and a full share from the third child. However, the tax reduction linked to the family quotient is limited to €1,592 for each additional half-share and 796 euros for each additional quarter share.
Your baby was born in 2022?
Think well record your child’s marital status in your statement since any birth during the year entitles you to a half share or an additional share depending on your family situation, regardless of their date of birth (even on December 31, 2022). If your baby is born in early 2022, you can report the birth online in the “Manage my withholding tax” section, so that you can update the income tax return prepared in spring 2023.
In this case, the child remains dependent on the parent with whom he usually resides and who takes care of him on a daily basis. In the case of alternating residence, on the other hand, each of the two parents can benefit from a increase in shares, equal to half of that granted in the case of exclusive residence. Thus, if the child gives right to a share, the parents will benefit from a half share each.
Tax attachment: up to what age?
You can request the attachment of your child if he is under 21 on January 1 of the tax year. For those under 25, they can also be attached to their parents provided they continue their studies on the same date. Please note: you will still have to add to your income those received by your child. This solution does not add a share of the family quotient, but it does exempts your child from taxes. On the other hand, if your child is of legal age and single, and therefore has no dependents, you can request a connection which will allow you to benefit from increase in the number of shares for the calculation of the family quotient. If he is married, in a PACS or with children, you can then benefit from an allowance of 6042 euros per attached person (your child, his spouse and their children) on your income.
A purchasing power simulator. The government is offering a tool allowing taxpayers to assess their purchasing power. Depending on your last reference tax income, the number of shares in your household and your professional situation, calculate your estimate. See the purchasing power simulator