2022 tax credit: what expenses should I report on my tax return?


2022 tax credit: what expenses should I report on my tax return?

TAX CREDIT 2022. Work tax credit, tutoring, gardening... What expenses can I enter on my tax return to benefit from the tax credit? How do I complete my tax return? All the information in our dedicated article.

[Updated April 8, 2022 at 7:27 a.m.] The 2022 reporting campaign is now open and you have the possibility of obtaining a tax credit for certain expenses such as the employment of an employee at your home, the care of child away from home or some work. The tax credit corresponds to an amount deducted from your income tax (IR) If the tax credit is greater than the amount of the tax, the excess (or all of it if you are not taxable) gives rise reimbursed by the General Directorate of Public Finances. Expenses such as DIY, gardening or private lessons can give rise to a tax credit. A tax advantage that benefits 235,000 tax households in France. The amount in question is deducted from your income tax. By way of example, here are the expenses relating to the employment of an employee at home which can give rise to a tax credit:

Since Friday January 28, 2022, the instant tax credit has emerged for the employment of an employee at home, in other words, the tax credit becomes contemporary. After being tested in Paris and in the Nord department, the immediate tax credit should be generalized to the whole country from next April. Also, social aid such as APA, PCH and childcare would be affected. Do you want to take advantage of a tax credit by filing your 2022 tax return on your 2021 income? All the information is available just below in our dedicated article.

Home employment, childcare costs for children under 6, union dues... Certain expenses incurred during the tax year give rise to this famous tax credit. A sum that you receive through a bank transfer, or a check letter when the General Directorate of Public Finance (DGFiP) does not have your bank details. This is the case for 235,000 tax households. The tax credit applies to both taxable and non-taxable persons.

Recently, new tax credits have emerged to allow taxpayers to invest in green energies such as the installation of heat pumps, thermal insulation materials or the installation of a VMC at double flow. What expenses are eligible for the tax credit? Check out the full list at info-gouv.fr.

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 at your local public finance center, or on the official tax website, here, and should 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.

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 small gardening jobs and small do-it-yourself services.

For the employment of an employee at home, coverage represents 50% of the expenses incurred over 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 increased to 20,000 euros.

Here is the list of activities eligible for the tax credit for the employment of a home-based employee:

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 can be reimbursed, up to 25%, up to a limit of 5,000 euros for a single person, 10,000 euros for a couple subject to joint taxation, then EUR 400 additional per dependent. For this device too, refer to form n°2042 RICI, in boxes 7WJ and 7WL.

Do you have your child looked after by an approved childminder or in a crèche, daycare center or daycare centre? If your child is under 6 on January 1 of the tax year and is effectively your dependent, you are eligible for a tax benefit. The tax credit corresponds to 50% of the sums incurred, up to a limit of 2,300 euros per child (1,150 euros in shared custody). The maximum amount of the tax benefit is therefore EUR 1,150. This tax credit is also considered as recurring and gives rise to an advance at the start of the year. The declaration takes place 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 energy transition tax credit, which made it possible in particular to finance the installation of new windows or even a boiler or a pellet stove, was officially abolished. There is therefore no longer a tax credit strictly speaking. Since January 1, 2020, it has been replaced by a new aid system, paid at the end of the work, called Ma Prime Rénov'

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 2022 saw tax credit recipients take advantage of an advance. Paid to more than 9 million tax households, this deposit amounts to an average of 605 euros per household. What does it correspond to? The deposit paid corresponds to 60% of the tax benefits estimated as regular by the tax authorities. To claim it, it is essential to have benefited from tax reductions or credits in 2021.

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 transmitted your bank details to the tax authorities and then check your eligibility for the scheme. Only a few reasons are eligible, those considered recurring.

The immediate tax credit for personal services for individual employers will become widespread. After an experiment in Paris and in the Nord department, the system will extend to the entire national territory from January 2022, announced Olivier Dussopt, Minister Delegate to the Minister of the Economy, Tuesday January 18: "This reform is not only a reform of simplification, since the users of personal services will no longer pay only the remainder payable by the service to which they have recourse" before continuing: "It is also a reform of purchasing power since in the long term, no one will have to advance the amount of social and tax aid to which he is entitled for personal services.

You can check your eligibility on your personal space on the impots.gouv.fr website by logging in with 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 a home helper, you can check the information mentioned in the withholding tax section and then click on "Manage your advance of reductions and tax credits". 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 has been 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 recurring are affected, here they are:

All the specifics are available on the tax website.

For the 235,000 tax households for which the Directorate General of Public Finance (DGFiP) does not have bank details, the precious sesame was to be sent in the form of a letter check by post, by the end of January.

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 advantage 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 and then to connect to your Cesu account to activate the option. immediately before declaring the hours worked each month.

Clearly, its 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 office assesses 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 a home-based employee. Concretely, you will therefore only pay 50% of the actual cost of the service, every month. Indeed, the State will pay the other half directly to the employee or to the service provider.

On average, an advance of 605 euros will be distributed to each of them, i.e. 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 regularization in the summer of 2022 taking into account the amount of the advance paid in January 2022 " press release from the ministry. The whole system represents a total amount of 5.3 billion euros for the State.

If your eligible expenses in 2021 are stable compared to 2021, no problem, you will collect the remaining 40% 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 payment or levy. 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.

Attention, the payment of this tax credit advance to nearly 9 million tax households gives rise to a good number of reimbursement scams. Sending 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.


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