The traditional tax declaration campaign has just opened, causing, in the process, concerns for taxpayers. It is difficult, in fact, at the time of this process, not to give in to a certain panic fearing to forget to declare specific amounts or not to fill in the requested information correctly. While paying high tax is also a source of anxiety, it is possible, thanks to several mechanisms, to reduce the amount of your income tax. So, can you get a tax reduction if you accommodate your children?
In certain cases, the tax authorities may grant you the right to a deduction. This is an amount that is removed from your taxable income. It can, therefore, be carried out on your overall gross income, as a deduction from the alimony paid to your children, or on one of your category incomes, for example the deduction of professional expenses from your salaries and wages. The tax credit is, for its part, an amount subtracted from the amount of your tax.
In the case of the tax credit, it is refunded to you in whole or in part when its amount exceeds that of your tax or when you are not taxable. It should not be confused with the tax reduction. This is an amount deducted from the amount of your tax. It can be applied for donations to organizations of general interest and remains used if you have tax to pay. If you do not pay income tax, you will not be able to benefit from the tax reduction.
The reduction can also be applied to support people losing their autonomy. It is put in place in order to reduce their income tax on part of the expenses caused by dependency. The tax reduction is thus 25% of the expenses incurred, within the annual limit of 10,000 euros per person accommodated.
If you permanently accommodate one or more people over 75, you have the ability to deduct from your income, subject to means conditions, a sum representative of the expenses incurred. In this context, the deduction was limited to 3,786 euros per person welcomed in 2022.
While hosting a person over 75 gives you a reduction, what about if it is one of your children? In this context, you have the possibility of deducting lump sum alimony from your income. However, it is essential that your adult child is not attached to your tax household.
As our colleagues from Notre Temps explain, “the maintenance obligation being paid in kind (accommodation and food), you can deduct the lump sum of 3,786 euros (x2 if your child is married or in a civil partnership) if your child has been hosted throughout 2022”.