Tax deduction or tax credit? What you deserve here

From April 7, 2022, it is possible to file your tax return. It’s time to dump her and move on. But then taxpayers can demand a reduction?

What discounts and deductions?

If you live in France for tax purposes, you can benefit from certain conditionsA tax credit For the expenses of you or a member of your tax family. There are four types of discounts: cuts related to family, housing, home help and personal assistance.

Family-related discounts

In some special cases tax deductions are proposed within the family structure, such as the cost of childcare.

If you care for a child outside of your home, a tax credit equal to 50% of the cost paid for childcare is applied to your expenses for children under 6 on January 1 of the year revenue. Expenses taken into account include salary and social security contributions for the child. For those who keep the child at home: You can take advantage of the tax credit.

You can also take advantage of deducting school fees for children. When your dependent child receives a secondary or higher education in a public or private institution, you may benefit from a reduction in income tax.

The amount of tax deduction is set at: 61 euros per child pursuing lower secondary education (secondary school); 153 euros per child for higher secondary education (high school); 183 euros per child pursuing a higher education course.

Cutting for grants

If you donate to the association, you benefit from a reduction in income tax. This reduction specifically depends on the amount given.

Your donation must be made to an organization that meets 3 criteria: nonprofit, a social purpose and disinterested management, not for the benefit of a limited circle of people.

Housing deduction

Housing completed more than 2 years ago has a tax credit for energy conversion costs. The tax credit paid on interest on the loan taken for the acquisition of the original residence has been abolished for loan offers issued from January 1, 2011. Tax Credit New or Old Accommodation for helping individuals to install dedicated equipment for the elderly or disabled.

Tax credit associated with rental investment: If you live in France for tax purposes, you may benefit from tax deductions for certain rental property investments. Tax deductions are granted for the first time in the year of residence or after its acquisition if it occurs.

Home Employment Tax Credit

You can take advantage of a tax credit if you “pay for the personal services provided to you at your primary or secondary residence in France, whether you own it or not”.

You can claim this if you have spent at the residence of one of your occupants, fulfilling the conditions of benefiting from the Personalized Autonomous Allowance (APA). The tax credit, equivalent to 50% of the cost, held within the annual limit of 12,000 euros, has probably been increased.

Tax credit for personal assistance

You may benefit from a tax credit for spending on equipment designed to make housing accessible to the elderly or disabled, or to spend on equipment that allows you to adapt housing for autonomy or disability loss.

This applies to costs paid between January 1, 2005 and December 31, 2020 and to your main residence in France. However, for the cost of allowing housing to adapt to loss of autonomy or disability, a tax credit is granted only if you or a member of your tax family meets certain conditions.

The tax credit rate is set at 40% for the cost of work to prevent technical risks or for expenses related to performing diagnostics prior to this work. And 25% for the cost of equipment designed to make housing accessible to the elderly or disabled, and 25% for equipment that allows them to adapt to the loss of autonomy or disability.


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