The end of the year is fast approaching and there are few levers left to activate to reduce your tax on your 2024 income. Generosity remains an option since donations to associations allow a deduction of up to 66% of the amounts paid into the year, up to 20% of total net taxable income. This rate even rises to 75% when the beneficiary is an organization helping people in difficulty, up to a limit of 1,000 euros however.
Check the authorized ceiling
The remaining time also allows you to make a payment into your retirement savings plan or take out such a contract. It is better to anticipate before Christmas, to avoid any unpleasant surprises, insurers being generally overwhelmed by files at this time of year. The amounts paid reduce taxable income, the tax impact will be proportional to your marginal tax bracket. Thus, a person taxed at 30% will see their tax reduced by 1,500 euros for a payment of 5,000 euros.
Be careful not to exceed the authorized ceiling, which corresponds more or less to 10% of last year’s income, with the possibility of recovering the ceilings from the previous three years if they have not been used. The easiest way is to check your last tax notice for the exact amount. Employees who also benefit from a collective savings plan in their company can freely pay into it and thus unlock, if they have not already done so, any potential contribution from their employer. Two birds with one stone!