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Tax credit: Bercy pays this week an advance to 8.5 million households

2021-01-11T18:04:52.434Z


Households having benefited from this tax advantage in 2020 will receive 5.5 billion euros. This is rather good news in this time of health and economic crisis. On January 15, 8.5 million tax households that have already benefited from tax credits in 2020 will receive an advance for this year. The total amount of the check amounts to 5.5 billion euros. Households would otherwise have waited until next summer to take advantage of this tax advantage. " This advance will help preserve the p


This is rather good news in this time of health and economic crisis.

On January 15, 8.5 million tax households that have already benefited from tax credits in 2020 will receive an advance for this year.

The total amount of the check amounts to 5.5 billion euros.

Households would otherwise have waited until next summer to take advantage of this tax advantage.

"

This advance will help preserve the purchasing power of the French, especially during the health crisis, with an average amount of 640 euros per household concerned,

" said Bercy in a press release published on Monday.

Read also:

Purchasing power: are the French right to fear the return of high inflation?

In fact, this measure has been applied since the switch to withholding tax (PAS) in 2019, which allows the level of income tax to be adjusted in real time, each month.

The government has in fact decided to pay earlier - at the start of the year - part of certain tax credits and reductions that target expenditures made the previous year and considered recurring.

This is the case for costs related to the employment of an employee at home, the care of young children, accommodation in nursing homes or even donations.

The objective is to "

facilitate employment at home by repaying the associated tax charges more quickly

," recalls the ministry responsible for public accounts.

All the more so in a period of recession, when households are more likely to separate from their home helpers, or even to resort to undeclared work.

Only here, it is still necessary to define the amount of this advance without knowing the expenses incurred by the taxpayers last year.

For this, the tax authorities are therefore based on the tax credits paid last year for the expenses of 2019 and thus plans to grant 60% of the sums disbursed.

A regularization will then be made next summer, once the tax authorities will see more clearly when households have made their 2021 declaration on income and expenses incurred in 2020.

A first step

Concretely, for example, if a household hired a home help in 2019 who is still in office in 2020 without any change, he will then receive 60% of the tax credit from which he already benefited last year from this month of January and the rest next summer.

Conversely, if the same household terminated the contract in 2020 and did not inform the tax authorities, they will certainly receive the advance, but will have to repay it during the regularization.

This advance of certain tax credits is only a first step.

The government wants to go further.

Since last September, Bercy has been experimenting with the payment in real time, each month, of the tax credit for personal services to individual employers.

The latter therefore no longer have to advance the money received under this tax advantage.

A few dozen households in two departments are concerned and the experiment should gain momentum by the end of the year.

Read also:

Reductions and tax credits: what are the new rules of the game?

If the exercise is successful, the government intends to generalize the device - which targets personal services - throughout the country with, ultimately, the idea of ​​including other tax credits and reductions.

Source: lefigaro

All news articles on 2021-01-11

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