TAX CREDIT 2022. Donations, contributions, home employment … Several million tax households will receive a tax credit advance on January 17.
[Mis à jour le 10 janvier 2022 à 10h58] Will you be one of the taxpayers who will benefit from a boost from the tax administration in mid-January? The Ministry of the Economy announced the payment of “an advance on certain tax reductions and credits (RICI) on the bank accounts of just over 8.7 million tax households having benefited from tax credits and reductions. ‘tax in 2021 “, in a communicated published this Monday. The average amount of this deposit is estimated at 605 euros per household. But who is affected? This advance corresponds to 60% of the total amount of tax benefits considered recurring in the eyes of the tax authorities. Its amount is calculated according to the eligible expenses that you declared in your last tax return, therefore that you carried out in 2020.
“Depending on the declaration, next spring, of income and expenses incurred in 2021, the final amount of reductions and tax credits to which the taxpayer is entitled will be calculated and will be subject to regularization in the summer of 2022 taking into account the amount of the advance paid in January 2022 “, it is recalled. Clearly, if your eligible expenses in 2021 have remained stable compared to 2020, you will receive the remaining 40% in the summer. If they have increased, the administration will refund more. On the other hand, if your expenses have fallen (example: you have stopped using home help), you risk having to reimburse the tax authorities next summer!
Home employment, childcare costs for children under 6, union dues, etc. Certain expenses incurred during the tax year give rise to a tax advantage, known as a tax credit. No longer having to wait to receive a first deposit in mid-January, then the rest in the summer? The tax credit for the employment of a home employee will become contemporary, in other words, taxpayers will measure the benefit every month. The Urssafs recently unveiled the implementation schedule. After an experiment carried out with certain tax centers in Paris and in the North, it is now the turn of all taxpayers from these two departments using the Cesu + service, to be eligible (with the exception of beneficiaries of the service. compensation for disability andpersonalized autonomy allowance). All you need to do is log into your Cesu account to activate the option. You must have subscribed to Cesu + upstream. From January 2022, the measure will be extended to the entire territory “for all direct employers”, we told Capital.fr. In April 2022, it will be the turn of households using a service provider.
Do you have your child looked following by a childminder or in a crèche, daycare center or daycare center? If your child is under 6 years of age 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 involved, up to a limit of 2,300 euros per child (1150 euros in alternating custody). The maximum amount of the tax benefit is therefore € 1,150. This tax credit is also considered recurring and gives rise to an advance at the start of the year. The declaration is made in box 7GA to 7GG of form n ° 2042 RICI.
There was indeed a tax credit intended to encourage the French to undertake energy renovation work. On January 1, 2021, the tax credit for the energy transition, which made it possible in particular to finance the installation of new windows or even a boiler or a pellet stove was officially abolished. Strictly speaking, there is therefore no longer a tax credit. Since January 1, 2020, it has been replaced by a new aid device, paid as soon as the work is finished, called Ma Prime Rénov ‘.
The latter concerns all households, regardless of their income. In total, four income categories have been created, giving rise to four different bonuses. The amount of aid thus depends both on the nature of the work and on the household’s level of resources. Would you like to know more regarding the new Ma Prime Rénov ‘system? Read our dedicated article:
Some work may give you a tax credit. This is the installation and replacement of certain equipment specially designed for the elderly or disabled. 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 No. 2042 RICI, in boxes 7WJ and 7WL.
The tax credit for the employment of an employee at home allows the payment of 50% of expenses incurred during the year, up to a limit of 12,000 euros per year. This ceiling is increased by 1,500 euros depending on the family situation. It is increased 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 raised to 20,000 euros. What expenses are eligible for this tax benefit? Here are a few examples: tutoring, childcare, domestic services, collection and delivery of ironed linen, assistance for the elderly and disabled and small gardening work and small DIY services.
Keep in mind that the reimbursement limit is reduced for certain expenses. This is the case for small DIY, computer assistance and small gardening jobs. The home employment tax credit, being considered recurrent by the administration, gives rise to the payment each year of a deposit in mid-January.
The executive wants to ensure that this tax advantage becomes contemporary, as if it were subject to the withholding tax. Clearly, his payment would take place in “real time” every month from 2022. What will actually change? You are currently declaring 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 estimate the amount of a 60% advance paid to you in January, the following year. The income tax return that you make that year then makes it possible to determine the down payment 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 be responsible for paying the other half directly to the employee or to the service provider.
In detail, the device, in experimentation in the North and in Paris since September, will come into force “at the very beginning of 2022” for tax households that directly employ an employee at home, said the Minister of Public Accounts last week. For those who use a personal services company, it will be necessary to wait three more months.
Whatever tax credit you claim, you must declare it. Clearly, you must indicate to the tax authorities the amount of expenses eligible for one or more tax advantages. This procedure takes place at the same time as the income tax return. You must indicate the amounts of expenditure incurred in declaration No. 2042 RICI in particular, if you are not declaring 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 income tax return. Keep in mind that you must keep all supporting documents for expenses paid. The tax authorities are likely to ask you for them.
In mid-January, the tax administration proceeded to the payment of a tax credit advance of 60% for certain taxpayers, under the name “AVANCE CREDIMPOT”. In total, 8.5 million tax households have benefited from it. The average amount of this tax credit advance was estimated at 640 euros on average per household. The rest of this deposit is paid in the summer. Are you surprised that you did not receive this famous transfer from the tax authorities? Several factors can explain a failure to pay a tax credit deposit. Start by checking that you have indeed transmitted your bank details to the tax authorities.
Second, ask yourself if you are indeed eligible for this tax credit advance. Not all tax credits give rise to an advance payment in mid-January. Only the tax advantages considered as recurring are concerned. The tax administration has established a very precise list, which you can consult on the tax website. Finally, remember that if your tax credit advance is less than 8 euros, the tax authorities do not make a payment or deduction lower than this amount. You have to wait for the summer, once the tax authorities have studied your income tax return – the one you will fill out in the spring -, to determine whether the tax authorities owe you the remainder of the tax credit. This time, the amount will therefore be calculated according to the sums committed in 2020 and actually eligible.
What payment date should be used for the tax credit?
Declaration, advance, reimbursement … Do you still find it difficult to see clearly despite the withholding tax? Here are the main deadlines to remember for the tax credit for the coming year:
- January 15: this is the date on which certain tax households received a tax credit advance by bank transfer. This deposit relates exclusively to expenses considered to be recurring. This advance was calculated on the basis of the amount of expenses that you mentioned in your last declaration.
- Spring : this is the time when you are going to have to complete your income tax return. You will mention your expenses eligible for one or more tax credits made last year.
- Summer : the tax authorities determine your actual expenses and determine whether you owe a payment of a tax credit, and where applicable make a reimbursement. If your expenses qualify for a tax credit, you run the risk of having to reimburse the tax authorities in the fall of the advance paid to you in mid-January.
- December : as in last December, you should have the opportunity to modulate, or even eliminate, a possible advance of tax credit, if you already know that your expenses eligible for a tax credit have decreased, for example compared to the previous year.
- Mid-January: date of payment of the recurring tax credit deposit, calculated on the basis of the last income tax return, if you have not made any changes.
