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The year is coming to an end, and for many French people, the countdown has already started. There is little time left to implement effective tax strategies. Fortunately, a few actions can help reduce your income tax for 2024. Take advantage of these levers before it's too late.
A fiscal year that ends
Income tax remains a sensitive subject in France. The progressive tax system increases the tax rate as income rises. Although this system is designed to be fair, it weighs heavily on household budgets. Especially with other deductions such as the CSG or the housing tax (for those who still owe it).
The highest taxed taxpayers often feel frustrated with a system considered complex and rigid. Thus, reducing your taxes becomes a priority to better manage your finances. But time is running out, because the fiscal year is coming to an end. You have a few days left to take concrete measures.
Donations to reduce your taxes
One of the simplest ways to reduce your tax, while making a positive contribution to society, is to make a donation to a charity. Indeed, in France, a donation to an organization of general interest allows you to benefit from a tax reduction of 66% of the amount paid. And this, within the limit of 20% of taxable income.
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However, the tax reduction is even more advantageous when it comes to donations to associations helping people in difficulty. In this case, the deduction reaches 75%, up to 1,000 euros per year. Concretely, a donation of 1,000 euros allows you to save 750 euros on your tax.
Thus, by supporting organizations like the Restos du Coeurthe Red Cross or Doctors Without Bordersyou reduce your contribution while supporting a cause that is close to your heart. But don't forget, you have to make these donations before December 31 to benefit from it in 2024.
Another way to optimize your tax
The Retirement Savings Plan (PER) also represents a very effective lever for reducing income tax. It remains particularly interesting for households subject to a high tax bracket. By paying into a PER, you can immediately deduct your contributions from taxable income. This will allow you to reduce the tax payable the following year.
Therefore, if you make a payment before December 31, 2024, it will be taken into account for reduce the bill to pay for 2025. For example, a payment of 5,000 euros would allow a taxpayer in the 30% bracket to reduce their tax by 1,500 euros.
Have you not used your entire deduction limit from previous years? Please note that you can increase your tax reduction by making an additional payment. This is therefore the ideal opportunity to optimize your finances before the end of the year.
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This tax and legal method allows you to increase your income while reducing taxes and charges.
Finally, if your company offers a Collective savings plan with employer matchingconsider making a payment. This gesture will allow you to benefit from the tax reduction while benefiting from an additional advantage thanks to the contribution from your employer.
