Income tax declarations opened last Thursday in France, with households having between six and eight weeks to complete their declaration.
These declarations are generally made online, and while millions will be able to complete the declaration automatically, many others will have to manually complete it via their personal space on the French tax site.
If this is the case for you, it is a good idea to make a note of some key points you should not forget.
It is better to take your time over it than to make mistakes and have to later correct it – or worse, be penalised for a false declaration.
Note that you can complete it in stages, and that completed sections are saved in your account for another time or day. Once it is signed off you can, if necessary, go back again to correct it and resubmit it at any stage up to the deadline for your area.
Making sure you correctly tick all boxes can also reduce the amount of tax you pay, either by granting further tax reductions or adding additional ‘parts’ to your household.
Below, we cover some key points you should remember to review:
A change in living situation
One of the most important things to notify the authorities of – and the first thing you are prompted to amend if prefilled information is incorrect – is a change in your living situation.
This may concern a marriage or civil partnership, the birth of children or a new address.
Information on the make-up of your household (children or spouse) is particularly important as it can change the number of ‘parts’ included which affects the income level at which you begin paying tax.
Read more: Why more than half of French households do not pay income tax
Check pre-filled information is correct
If you have declared in the past then at least some of the information on the form is likely to be prefilled, including income known to the French authorities.
Despite the fact this is entered by the tax authorities it is important to double-check it is correct.
In particular, information on income may be wrong, not accounting for a change of jobs, unexpected bonuses, sick-pay, promotions, etc – in short, anything that can affect the overall amount earned.
If you spot an issue you need to correct it.
If the issue results in the declaration of a higher level of income the tax authorities are likely to accept it without further questioning, but if you note a reduction you should be ready to answer any questions as to why this is the case should it result in a lower tax liability.
Remember to declare foreign accounts
If you hold bank accounts, or cryptocurrency accounts or life assurance investment schemes or similar structures abroad, then you must declare these accounts in section 3016 - 3916bis.
Select the box for this when choosing the online ‘rubriques’ you will need.
Note also that if you have income that arises from foreign sources this needs to be declared in a specific annex, 2047, and not just in the main part of the declaration, even though the income declared here should in most cases also be carried over to the main boxes for that type of income as well.
Declaring the income of your children
Errors are also frequently made when declaring the income of young adults attached to the household.
Money that teenagers or young adults earn from part-time jobs only needs to be declared if it reaches three times the gross monthly minimum wage (Smic) in 2024, equivalent to €5,318. Below this, it does not need to be declared.
Income for apprentices and trainees is tax-free as long as it is equal or below the annual minimum wage in 2024 – €21,273 – and does not need to be declared if below this.
For those working part-time at a restaurant or bar, remember that tips also do not generally need to be declared.
Usually when children earn income from a full-time job etc, they should start submitting their own tax declarations.
Information on raising children
Single parents who have children still living at home – or who raised children alone for several years – should declare this as it allows them to benefit from further tax reductions.
A single parent who declares a child is still living with them and being raised alone can see the ‘part’ this child contributes to the household increase, providing up to €4,224 in reduced tax on this year’s return. This is done by ticking box ‘T’ on the return.
Parents who spent at least five years raising a child alone (whether consecutive or not) should tick box ‘L’, which will grant them an additional half-part for life, equalling up to €1,069 in additional tax reductions in 2024.
Check which taxation is better for your investment income
If you have income from investments, shares, bonds, etc, or from certain interest-yielding accounts this of course needs to be declared.
When it comes to taxing this income however you have the choice of whether it is taxed at a flat tax 30% rate (including social charges), or using the progressive scale used for other income such as your salary.
To choose the latter, tick the ‘2OP’ box. This will often be beneficial unless your income from such sources is above (around) €30,000.
If above that the default 30% flat tax levied on investment income is likely to be more advantageous and result in a lower tax liability.
Read also: How are cryptocurrencies taxed in France?
