Tax credit money paid out from today

Tax credit money totalling €2.5billion will be hitting people's bank accounts from today and over the next two weeks.

This coincides also with avis d'imposition income tax statements arriving in people's personal spaces on the impots.gouv.fr website from Monday to August 7 for those who declared income to France received in 2018.

The tax credit reimbursements are linked to the new prélèvement à la source (PAS), at-source tax system that began on January 1.

People have been paying income tax throughout the year under the new system however rights to tax credits and reductions can only be worked out definitively once the real income of the previous year is known.

As a result in January the government paid instalments worth 60% of the value of the tax credits that taxpayers benefitted from in 2018. Now that people’s incomes for 2018 have been fully calculated after declarations this May/June the government is starting to pay ‘regularisation’ amounts.

The credits are due to eligible expenses that people occurred last year such as donations to charities or employing home help such as a gardener or cleaner or nanny.

The amounts owning to you will either be deducted from any remaining tax you may have payable for incomes in 2018 or paid out to you.

However note that if you in fact did not have similar expenses in 2018 as in the previous year (2017) then you may have had an overpayment in January, meaning some money may need to be paid back.

In the latter case if you have income tax still to pay for 2018 it will be added onto the bill otherwise it will be payable separately by September 15.

To check your own situation you should connect to your personal online space at impots.gouv.fr over the next two weeks to find your avis d’imposition.

If you declared by paper then your avis will come in the post from August 5 to September 2.

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