The starting signal is given. From this Thursday, April 13, the 39 million tax households can start declaring their income for 2022 on the tax site. For many of them, the information will already be indicated in the boxes of the official document (the automatic declaration), as has been the case since 2020.
Pre-filled paper declarations will be sent by mail from April 6 to 25. Be careful, however, of changes in the situation, possible errors and new developments that may concern you. Here are the main changes made this year during the finance law for 2023 which may have consequences on the form that you will have to validate.
First of all, be aware that the brackets of the income tax scale have been increased by 5.4% to contain the effects of inflation on the level of taxation of the French. Some households should emerge winners from this novelty, while consumer prices still increased by 5.6% over one year in March, according to INSEE. Thus, for example, the first scale is raised to 10,777 euros, against 10,225 euros previously. Below this amount of net income, individuals pay no tax.
Purchasing power exemptions
Other tax benefits have been recorded in the finance law to support working taxpayers in this period of turbulence. The annual ceiling for exempt overtime or additional hours is thus increased from 5,000 euros to 7,500 euros. Similarly, the monetization of rest days or RTT between January 1, 2022 and December 31, 2025 is exempt within the common limit of 7,500 euros with overtime and additional hours exempt.
But that’s not all. Tips received in 2022 and 2023 are exempt from income tax as well as social security contributions. Only employees who receive less than 1.6 minimum wage can benefit from this new measure, which is supposed to make the professions – always in tension – of the hotel and catering industry more attractive. Did they really declare, until now, these tips? Not necessarily, at least individually. But the bonuses paid by the employer to its employees in contact with customers are also taken into account.
New boosts for working motorists
With the rise in fuel prices, the purchasing power of workers who take their vehicle to work is greatly reduced. Two tax measures therefore come into force this year to balance (a little) the accounts of households while the overall aid at the pump has been replaced by a fuel allowance of 100 euros for the most modest.
Only taxpayers who opt for actual costs in their tax return are affected by these two new features. The first: those who carpool to get to their place of work can now deduct these professional expenses from their actual costs. The second boost was published on April 7 in the Official Journal: for employees who use the mileage scale to assess their business trips, the allowance is increased by 5.4% this year.
Tax reductions and credits extended or revalued
Several tax reductions (such as the “Malraux”, for the restoration of buildings located in old degraded districts, or the device for overseas investments) are extended for a minimum of one year.
The tax credit for taxpayers who decide to install an electric vehicle charging station is also extended until the end of 2025. Good news for parents who have their child under 6 looked after and already benefit from a tax credit: the ceiling for this tax benefit has been raised from 2,300 euros to 3,500 euros per toddler.
Finally, be careful: if you use a tax credit for the employment of an employee at home (childminder, cleaning lady, gardener, etc.), an approved association or an authorized or contracted body, you must the first time this year specify in your tax return the nature of the services for which your expenses were incurred.
In total, 26 services qualify for this tax rebate which covers 50% of expenses, with a ceiling of up to 12,000 euros for most of them. The stated objective of this new reporting obligation is to see more clearly in this maquis. And, why not in the future, to cut in certain tax credits, considered too expensive in view of their interest.