2020 tax return: how to optimize it with children?

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Should we fear an increase in taxes to compensate for the economic crisis? Until when can we make a declaration on the Internet? Tax credit for childcare, school fees, family quota and deduction of alimony … We guide you.

[Mise à jour du 20 avril à 19h30]. This is the question that many French people are asking themselves during this coronavirus period. Because to compensate for this economic crisis, should we fear a higher taxes by the state ? Gérald Darmanin, Minister of Action and Public Accounts, is reassuring. He recalled on April 15 on TF1 that the President’s objective was to lower taxes for the past three years. “When we put more taxes on the backs of companies, more taxes on the backs of employees, we discourage economic activity. To get revenue, either you have more taxes, you increase them (it’s not the choice we make), or you continue to restore economic growth.“The government preferred to choose” to invest in this debt which allows us to keep one in three workers on short-time work, “said the minister.

When and how to file your tax return this year, in the midst of the Covid-19 epidemic? During containment, the tax filing dates have been adapted. The opening of the site has been postponed by 15 days for online remote declarations and the Tax Administration sets a new calendar for taxpayers. Therefore, the 2020 tax campaign started this Monday April 20, 2020. The deadline is June 12 on paper, and depending on the department, until June 4, 8 or 11 for online reporting.

Date of tax declaration on paper

People who do not have an internet connection or who are unable to declare their taxes online can carry out their paper statement. These are only those who did not report online last year. In this case, you have until June 12, 2020 , authentic postmark, to send it.

Online tax declaration date

If you opt for tele-declaration, the online service is open from Monday April 20 but the deadline varies according to the departments:

  • until June 4, 2020, 11.59 p.m .: Departments from 01 to 19
  • until June 8, 2020 : departments from 20 to 54
  • until June 11, 2020 : departments 55 to 976.

Be aware that taxes should not increase due to government assistance to individuals and businesses in the midst of a health crisis. “We must organize ourselves so that the country holds up, so that businesses survive and so that a national, European global recovery plan, I hope, can allow the whole economy to start up again. But it will not pass, I think, by raising taxes “, said Edouard Philippe on April 2, 2020 on TF1.

Automatic declaration

If you have not declared any change of address, birth, marriage or creation of a deposit withholding tax compared to last year, automatic declaration You will then be offered, with income prefilled by the administration, which you will need to check in your particular space. If the information seems correct to you, you will not have to take any steps. Conversely, depending on your situation, you will have to complete and sign your tax return.

If you have your child cared for at home or at a licensed childminder, in a crèche, a daycare center or a leisure center … a tax credit may be granted to you, under certain conditions. As of January 1, 2020, your child must be under the age of 6 and for the 2019 income tax 2019, he must be born in 2013 or later. The tax credit amounts to 50% of spending on child care (excluding food costs and after deduction of caregivers). Thus, the expenses taken into account include the wages and social contributions paid to the childminder. They are limited to 2,300 euros per child in care (1,150 euros in the case of alternate custody). Therefore, the amount of the tax credit cannot exceed 1,150 euros per child, and 575 euros in case of alternate residence. Also remember to deduct the aid received by the Caf, in particular for the additional free choice of childcare. Also worth knowing: the costs related to leisure centers give entitlement to the same tax credit.

For example : if your childminder costs 6,000 euros per year, and you receive 4,000 euros from the Caf a year, your expenses to be declared are therefore 2,000 euros, which is less than the ceiling of 2,300 euros. The tax credit being halved, this ultimately amounts to 1,000 euros.

Monthly creditit tax 2020?

Perspective changes: an experiment announced by Gérald Darmanin last September consists of no longer paying the tax credit in two stages during the year, but of calculating it every month. The experiment will start in July 2020 for parents benefiting from personalized autonomy assistance (APA) and the Disability Compensation Benefit (PCH) located in the North and in Paris, with the aim of then being extended. to all French private employers. An essential measure to further limit cash advances and thus make home services accessible to the greatest number.

Deduction of tuition fees

For older children, tax reduction is planned to cover children’s school fees, if they continue their secondary or higher studies in a public or private establishment, on December 31, 2019 (for the 2020 income tax of 2019). Thus, the income tax reduction amounts to:

  • 61 euros per child studying at college
  • 153 euros per child continuing his studies in high school,
  • 183 euros per child undergoing higher education.

To benefit from this aid, students must not have a parallel employment contract, nor be paid. They must be free from any commitment during and at the end of their studies.

If you have chosen not to attach your child, you can pay him a alimony without hosting it. Indeed, if his income is insufficient and even if he is over 25 years old or if he is not continuing his studies, you can opt for this solution. You will just need to provide the proof of payment of support and your child’s lack of sufficient income. In all cases, an income simulation is possible to find out whether it is preferable to attach your child or, if he is of age, to pay him a pension so that he can file his own income tax return. Otherwise, the sums are deductible from your income and limited to 5,947 euros per child. Unlike attachment, this deduction is possible, even if your child is over 25 years old and is no longer a student. The deducted support payments are then taxable in the name of the beneficiary. Please note, you will still need choose between deduction of alimony or attachment, because it is not possible to benefit from both at the same time.

It corresponds to number of parts which you can benefit from depending on your situation (married, civil union, single or cohabiting) and dependent children. Thus, some cases give right to additional shares which will reduce your taxes. For example, if you live alone or with a partner or have divorced in 2019, you are entitled to share of family quotient. An increase in shares is then granted to you if you have dependent children:

  • 2 parts from a child for people living alone, against 1.5% for people living with a partner. And for each other child, you are entitled to an additional half share.
  • For married or PACS couples, subject to common taxation, two shares of family quotient are allocated to them, then half a share per number of additional dependent children. However, the tax reduction linked to the family quotient is limited to 1,567 euros for each additional half-share and at 784 euros for each additional quarter share.

Think well note your child’s marital status in your statement since any birth during the year 2019 entitles you to a half share or an additional share depending on your family situation, regardless of his date of birth (even as of December 31, 2019). If your baby was born at the start of 2020, you can report his birth online in the “Manage my direct debit” section, so that you can update the tax return drawn up in spring 2021.

In this case, the child remains in the care of the parent with whom he usually resides and who takes care of him on a daily basis. In the case of alternate residence, however, each of the two parents can benefit from a increase in shares, equal to half of that allocated in the case of exclusive residence. Thus, if the child is entitled to a share, the parents will benefit from half a share each.

You can request the attachment of your child if he is under 21 years of age on January 1, 2019. For those under 25, they can also be attached to their parents provided they continue their studies on the same date. Please note: you will still need to add to your income those received by your child. This solution does not add a family quotient share, but it allows you to exempt your child from taxes. On the other hand, if your child is over the age of 18 and unmarried, therefore with no family dependents, you can request a connection which will allow you to benefit from a increase in the number of shares for calculating the family quotient. If he is married, PACS or with children, you can then benefit from an allowance of 5,947 euros per person connected (your child, his spouse and their children) on your income.

A purchasing power simulator. The government is offering a tool for taxpayers to assess their purchasing power. Based on your last reference tax income, the number of parts of your household and your professional situation, calculate your estimate. See the purchasing power simulator

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