Classic. The 2019 income tax return hardly offers any new devices for taxpayers to cut their taxes. It must be said, on the contrary, that the trend has been rather to hunt for tax loopholes in recent years. Here, however, in terms of reductions and tax credits (Rici), the avenues available to you in 2020.
Record donations for Notre-Dame de Paris. A year after the fire that ravaged the cathedral, popular mobilization has proved to be exceptional. According to the public establishment in charge of reconstruction, the donations reached 901.5 million euros, of which 188.3 million euros (21%) have already been collected. Those made from April 15, 2019 to December 31, 2019 are entitled to a tax reduction equal to 75% of the payments retained within the limit of 1000 euros. The tax advantage continues beyond, but under less advantageous conditions. The fraction of donations exceeding 1000 euros opens a tax reduction to 66%.
"Green" works and equipment for your home. The energy transition tax credit (CITE) had been extended until December 31, 2019 for an extended scope (replacement of simple glazing, acquisition of very energy efficient boilers, heat pumps for water production hot water, etc.) Be careful! Only for boilers, out of 250,000 models eligible for ISCED, only 206,000 had been registered in 2018 on tax returns. The negligent lost an average of 1068 euros.
Tax-free overtime and “Macron” bonus. The remuneration for overtime worked from January 1, 2019 is exempt from income tax within the annual limit of 5,000 euros per employee. Ditto for the so-called “Macron” purchasing power bonus paid between December 11, 2018 and March 31, 2019, up to a limit of 1,000 euros.
Land income: the pitfalls of the 2020 declaration. For the second consecutive year, the declaration of land income is special. Measures have been taken to prevent the optimization of the white year with the transition to withholding tax. The main one: the repair and maintenance expenses and the deductible improvement expenses for the determination of the net taxable property income for the year 2019, are retained up to the average of the expenses incurred in 2018 and 2019.
Don't forget the children's school fees. Some 5.6 million children are enrolled in middle and high school. But barely 3 million appear in their parents' tax returns. However, in addition to the half tax share of each child (up to the second, one share thereafter), parents can also claim - without income condition - a flat tax reduction of 61 euros for a college student (box 7EA) and 153 euros (box 7EC) for a high school student. To be sure that no one forgets, the tax administration promises, when declaring, "warning messages to prevent errors".
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Donations to caregivers will require patience. In the midst of a coronavirus epidemic, the French were generous to medical staff and researchers. Have you paid to the Public Assistance of Paris Hospitals (AP-HP) or the Institut Pasteur? If these donations were made after January 1, they will be carried over to next year, in the 2021 declaration. Be careful when you donate via an online prize pool. If it was created by an eligible organization, the donations will allow you to benefit from the tax reduction (do not forget to provide your contact details to obtain the tax receipt). If it is the result of an individual initiative or intended to support an association which is not approved for tax purposes, your donation will not give you any tax boost.
