TAX CREDIT 2022. This Monday, January 17, 8.7 million tax households benefit from a tax credit advance. Procedures, eligibility, payment dates… Linternaute.com answers your questions.
[Mis à jour le 17 janvier 2022 à 15h58] You may have seen a transfer labeled “CREDITIMPOT ADVANCE” in your bank account, this monday january 17. The tax credit advance has arrived! Near 9 million tax households should benefit from it at the beginning of the week. On average, each household should pocket 605 euros. This deposit corresponds to 60% of tax benefits estimated as regular by the tax authorities. Keep in mind that it is necessary to have benefited from reductions or of creditstaxes in 2021 to claim an advance.
For the 235,000 tax households whose Directorate General of Public Finance (DGFiP) does not have bank details, do not worry. You will receive the precious sesame in the form of a check letter by post, from here at the end of January.
In mid-January, the tax authorities now proceed to the payment of a 60% tax credit advance for certain taxpayers, under the heading “ADVANCE CREDIMPOT”. In total, 8.7 million tax households are expected to benefit from it in 2022. The rest of this installment is paid in the summer. Are you surprised not to have received this famous transfer from the tax authorities? Several factors can explain a lack of payment of the tax credit installment. Start by checking that you have indeed transmitted your bank details to the tax authorities then check your device eligibility. Only a few reasons are eligible, those considered recurring.
You can check your eligibility on your personal space on the site impots.gouv.fr by logging in using your tax ID on your last tax notice. The taxpayers concerned have already received an email to benefit from this tax credit advance. If you no longer employ home help, you can check the information mentioned in the section withholding tax then click on “Manage your tax reductions and credits advance”. You can then reduce or remove the planned advance. This is the best way in the future to avoid having to reimburse the tax authorities later, in this case in the summer once your tax return completed and taken into account by the tax authorities.
Are you wondering because you have not received this famous advance from the tax authorities and have not received an email? First of all, make sure you have transmitted all of your bank details to the tax authorities. Next, check your eligibility. Not all tax credits entitle you to an advance. Only tax benefits considered as recurring are concerned, here they are :
- Home employment
- Child care costs
- Union dues
- Overseas investment in housing
- Dependency-related expenses
- Rental investments in furnished rentals
- Rental investments Scellier
- Rental investments Duflot and Pinel
- Donations to charities and political parties
All specifications are available at tax website.
On average, a lead of 605 euros will be distributed to each of them, either 60% of the total amount of tax benefits estimated as regular by the French administration, declared in the spring of 2021, for expenses incurred in 2020. “The final amount of the tax reductions and credits to which the taxpayer is entitled will be recalculated and will be subject to a regularization in the summer of 2022 taking into account the amount of the advance paid in January 2022″ is mentioned in the press release from the ministry. The whole system represents a total amount of €5.3 billion for the state.
If your eligible expenses in 2021 are stable compared to 2021, no problem, you will receive the 40% remaining in the summer. If these have fallen, the tax authorities will be entitled to make you pay the difference. You will have to repay. Finally, if your tax credit advance is less than 8 euros, the tax authorities do not make any payments or levies. You will have to wait until the summer, after studying your file, to determine if the tax authorities are liable for the rest of the tax credit.
To benefit from future tax credits, you must indicate to the tax authorities the amount of the expenses eligible for your tax benefit(s). This procedure occurs at the same time as the declaration of income in the spring. It is necessary to communicate the amount of the expenses incurred, in particular via declaration n°2042 RICI if you do not declare online. This document is available in your public finance center, or on the official tax website, here, and must be attached to form 2042 of your tax return. Remember that you must keep all receipts for expenses paid. The tax authorities are likely to ask you for them.
Attention, the payment of this tax credit advance to nearly 9 million tax households gives rise to a good number of reimbursement scams. The sending of fraudulent emails impersonating the Directorate General of Public Finances (DGFiP) is commonplace. How to guard against it? Check the sender’s email address. Official DGFiP emails use addresses whose domain is / @dgfip.finances.gouv.fr. Also, you don’t have to do anything. The amount of the advance is allocated to you by bank transfer denominated “ADVANCE CREDIMPOT”. Simply. Finally, beware of the spelling used in these fraudulent emails. Generally, the syntax is dubious and the emails are written in approximate French.
What is the tax credit for personal services? Works tax credit
Work to install and replace certain equipment specially designed for the elderly or disabled is eligible for the tax credit. Expenses incurred for sanitary, safety or accessibility equipment may be reimbursed to you, up to 25%, within the limit of 5,000 euros for a single person, 10,000 euros for a couple subject to joint taxation, then an additional 400 euros per dependent. For this device too, refer to form n°2042 RICI, in boxes 7WJ and 7WL.
What about the tax credit for childcare outside the home? And in nursery?
Do you have your child cared for by an approved childminder or in a crèche, daycare center or daycare centre? If your child is less than 6 years old on January 1 of the tax year and is actually dependent on you, you are eligible for a tax benefit. The tax credit corresponds to 50% of the sums committed, within the limit of 2,300 euros per child (1,150 euros in shared custody). The maximum amount of the tax benefit is therefore 1,150 euros. This tax credit is also considered as recurring and gives rise to an advance at the start of the year. The declaration, it, intervenes in box 7GA to 7GG of the form n ° 2042 RICI.
What is the work-at-home tax credit?
Here, several expenses are eligible for the tax credit because they are considered recurrent, such as tutoring, childcare, domestic services, collection and delivery of ironed linen, assistance for the elderly and disabled or minor gardening work and small DIY services.
For the employment of an employee at home, the payment represents 50% of expenses incurred over the year, within the limit of 12,000 euros per year. This ceiling is increased by €1,500 depending on the family situation. It is brought to 15,000 euros for the first year in which you directly employ an employee at home (18,000 euros depending on the family situation). If one of the members of the tax household is disabled, the ceiling is increased to €20,000.
Note that this tax credit is set to change in 2022. Regarding the calendar, all tax households in the Paris and Nord departments were eligible for the contemporaneity of the system. In January 2022, the measure was to be extended to the whole territory for all “direct employers” according to Capital.fr. Then, from April 2022, all households requesting a service provider will be eligible. The executive wishes to ensure that this tax benefit becomes contemporary, as if it were subject to withholding tax. Note: if the tax credit advance concerns the employment of an employee at home, it is necessary to have subscribed to the Cesu + service of Urssaf then to connect to your Cesu account to activate the service option of immediate advance before declaring the hours worked each month.
In other words, his payment would take place in “real time” every month from 2022. In reality, what will change? At present, you declare your expenses eligible for the home employment tax credit in the spring, at the same time as your income tax return. From this information, the tax authorities assess the amount of a 60% advance paid to you in January, the following year. The tax return that you make for that year then makes it possible to determine the deposit remaining to be paid, and the amount of the 60% advance for the following year. With the “instantaneous” tax credit, this mechanism ends for the tax credit for the employment of an employee at home. Concretely, you will therefore only pay 50% of the actual cost of the service, every month. Indeed, the State will take care of paying the other half directly to the employee or to the provider company.
Declaration, advance, reimbursement… Are you still struggling to see clearly despite the withholding tax? Here are the main deadlines to remember about the tax credit for the coming year:
- January 17: this is the date on which certain tax households received a tax credit advance by bank transfer. This deposit relates exclusively to expenses considered as recurring. This advance was calculated based on the amount of expenses you mentioned in your last statement.
- Spring : this is the time when you will have to complete your tax return. You will mention your expenses eligible for one or more tax credits made last year.
- Summer : the tax office determines your actual expenses and determines whether you are liable for a tax credit payment, and if necessary proceeds to a refund. If your expenses eligible for a tax credit are lower than expected, you risk having to repay the tax authorities in the fall of the advance that was paid to you in mid-January.
- December : as last December, you should have the opportunity to modulate, or even eliminate, a possible tax credit advance, if you already know that your expenses eligible for a tax credit have decreased, for compared to the previous year.