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Tax reduction, tax deduction what are the advantages you can benefit from in order to pay less income tax this year?
Expenditure Which Gives The Right To Reduction
Children attending school: children under age or over 18 for whom you are responsible are eligible for a reduction of € 61 per secondary school student, € 153 for a high school student and € 183 for a higher education student. You must be domiciled in France and children must be enrolled in a public or private establishment during the current school year on December 31, 2020.
Donations to works and associations:
Sums paid to associations or works which provide in France or abroad the free supply of meals or medical care, or to those which promote housing for people in difficulty are eligible for a tax reduction. It is equal to 75% of the sums paid up to a limit of € 521. Beyond that, the reduction is 66% within the limit of 20% of income.
In addition, the other associations declared of general interest or of public utility open the right to a reduction of 66% of the sums paid within the limit of 20% of the taxable income. Using the tax return calculator is important there.
Volunteers in an association:
If you have incurred costs as a volunteer in an association carrying out activities of general interest and presenting a philanthropic, educational, social, humanitarian, etc. character, you can deduct them from your tax. The expenses must be related to the object of the association and you must explicitly waive the reimbursement of these expenses. The reduction is 66% of the sums within the limit of 20% of the taxable income.
Dependent elderly people placed in an establishment:
The costs incurred in care establishments linked to dependency give rise to a tax reduction equal to 25% of the sums paid up to the limit of € 10,000 for a single person and € 5,000 for a couple hosted. Please note, if you receive a personalized allowance for autonomy (APA), these sums must be deducted from those you declare.
Donations to political parties: Donations to political parties give rise to a tax reduction equal to 66% of the sums paid up to a limit of € 7,500 per party. From the 2020 income statement, the overall limit for the year is no longer 20% of income but € 15,000 per year and per tax household.
Expenses Which Allow To Obtain A Tax Credit
Child under 6 years old kept away from home:
Childcare costs (nursery, approved nursery assistant, day nursery, leisure center without accommodation, school daycare) incurred for a child under 6 years old on January 1, 2020 give entitlement a tax credit equal to 50% of the sums paid up to a limit of € 2,300 per child (€ 1,150 in the case of joint custody). Please note, these are the sums you paid, minus any aid from CAF or your employer that you may have received.
Infographic Provided By individual tax services company, Mowery & Schoenfeld
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