It is a boost to the budget that most taxpayers have surely forgotten. Like last year at this time, as part of the withholding tax, the tax authorities will pay this Friday into the bank accounts of just over 8.5 million households an advance on certain tax reductions and credits. On average, the beneficiaries of this transfer – simply worded “AVANCE CREDIMPOT” – will receive 640 euros, estimated by the Directorate General of Public Finances (DGFiP).
But who is affected by this gain in purchasing power, the envelope of which amounts to 5.5 billion euros? Those who have already benefited from very specific tax credits or reductions in 2020, which concerns the employment of an employee at home, the costs of childcare or accommodation in nursing homes, donations, expenses of rental investment (Duflot, Pinel, Scellier, DOM, Censi-Bouvard), but also union dues.
“This advance, paid in one go, corresponds to 60% of the total amount of the reductions and tax credits concerned, declared in spring 2020 for expenses incurred in 2019 (Editor’s note: this total amount appears on the last income tax notice, received in the summer of 2020) », We specify at the DGFiP. But beware, if the taxpayer intervened directly in his particular area of the impots.gouv.fr site to reduce this amount between September and last December, the boost will be proportionally reduced, or even eliminated according to what has been declared.
The remaining 40% will be paid this summer
Already, if you want to know what amount you will receive, a document specifying the amount and the terms of payment is available online in your personal space on the tax website. You will then be informed by email of the availability of this document.
Next spring, after you have completed your 2020 income tax return, the tax department will do the accounts for you. The final amount of your tax credits and reductions will then be recalculated – upward or downward – and will be adjusted in summer 2021, taking into account the amount of the advance paid in January 2021. If nothing has changed the remaining 40% will be paid to you at that time.
If the tax authorities do not have your bank details – this is the case for 260,000 tax households – you will receive your advance on tax credits and reductions in the form of a letter-check that you will receive by La Poste d ‘by the end of January.