Nearly nine million households are expected to receive a payment on Monday January 17 to justify the tax credits due to them for 2021.
If you are one of the 8.7 million tax households concerned by the measure, you should find the money in your bank account, labeled ‘ADVANCE CREDIMPOT’.
Total payments are estimated at 5.3 billion euros, ie an average amount per household of around 600 euros.
If the tax office does not have your up-to-date bank details, you will receive the money as a check in the mail later this month.
The money relates to income tax credits or cost reductions such as: Employment of people at home (nannies, cleaning ladies…); childcare by a crib, childminder, childminder etc. give to charity; union dues or retirement home dues.
Monday’s payment will be equal to 60% of the qualifying expense tax credit/reduction money you earned for 2020 income reported in spring 2021.
You can find the total amount of these previous tax credits and reductions on your last income tax notice.
Once your 2021 income has been declared this spring, there will be a payment of the amount remaining due in the summer, or an invoice for reimbursement of all or part of the advance if you did not in fact have comparable expenses in 2021.
It was possible to avoid the latter by logging into your personal space on impots.gouv.fr and selecting Withholding tax and Manage your advance reductions and tax credits in order to cancel your advance payment or reduce it by giving an estimate of your actual expenses in 2021. However, this had to be done before December 9, 2021.
Note that from January 2022, if you employ a homemaker using the Cesu device, it is now possible to deduct your tax credit directly from the money you pay them, and the State will pay them the rest.
This “real time” immediate advance system is optional and must be requested (see cesu.urssaf.fr).
The option will be available from April for people who pay licensed home service organizations to help them at home, instead of employing someone directly.
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