Millions to receive tax office payment in France: are you eligible?

Nine million taxpayers in France are set to receive tax office money on January 15 in relation to expenses they incurred that give rise to tax credits. We look at who is eligible and how it will work.

Who will benefit?

Those concerned will previously have benefited from tax credits or reductions with regard to 2022 income declared in spring 2023.

This refers to money off your tax bill due to certain expenses such as employing a person in the home or donating to charity. If you do not pay enough tax to benefit fully, the money, or the balance, is paid to you by the tax office in the case of a credit, but you can only benefit from a ‘reduction’ within the amounts of tax you actually owe.

People will only declare the eligible expenses for the year 2023 when they fill out their tax return in spring 2024, so instalments of money are being sent out on the assumption that they were similar to last time.

Those set to benefit should already have had a tax office letter confirming this.

The letters state: “In 2023, you benefited from tax reductions or credits for expenditure incurred in 2022. This is why, without waiting for the final calculation of your tax on your 2023 income, you will receive an advance of 60% of these amounts.”

The second part will be paid in the summer of this year (2024), ie. the other 40% if the eligible tax credit/reduction expenses were the same as before, or more if they have increased.

However, if you in fact had fewer eligible expenses in 2023 than 2022, you may be asked to pay some money back in the latter part of this year. This is why it is possible each year to cancel or modify the January advance in your personal space at impots.gouv.fr up to mid-December of the previous year.

Having fewer eligible expenses could happen, for example, if you no longer employ someone at your home.

What are the reductions and credits that are included?

Tax credits

• Employing an employee at home
• Childcare costs
• Union subscriptions

Tax reductions

• Overseas investment in housing
• Dependency-related expenses
• Furnished rental investments in certain schemes (eg. loi Censi-Bouvard)
• Scellier rental investments (those made under the loi Scellier)
• Duflot and Pinel rental investments
• Donations to charities and political parties
• The Loc'Avantages rental scheme

How will I receive the money if I am eligible?

If you are entitled to money it will be transferred automatically into the bank account registered on your tax account.

It will be marked ‘AVANCE CREDIMPOT’.

It is important to be aware that you do not need to do anything for the payment, nor to confirm anything via text or letter. You should therefore be alert to scams (via text, letter, or email) that may suggest otherwise.

Read more: Beware: crooks are back with scam over French tax payments

However, you must ensure your bank details are up to date on your tax account. You can check this - and if necessary, make changes - in your personal account space on the impots.gouv.fr website (some of the website is also available in English).

• Go to the ‘Prélèvement à la source’ tab
• Click on on ‘Mettre à jour vos coordonnées bancaires' (Update your bank details)’, then ‘modifier (edit)’.

Read more: If you are expecting a French tax refund, do not forget this check

Do not click on any links in emails or texts that purport to ask you to confirm your bank details. You should only log into your tax account directly (not via a link) on a trusted computer or phone, and do so by typing in impots.gouv.fr, rather than clicking on a link from an email or text.

If the tax authorities do not have your bank details, they will send a cheque through the post to your registered property address.

If you have any questions about tax you can call from Monday to Friday, 8:30 to 19:00 on 08 09 40 14 01 (from within France).

You can also visit your local tax centre (centre des impôts) in person. The address will be on your latest tax statement.

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