Most taxpayers always say the same thing in the form of a good resolution: “next year, I will try to pay less taxes”. Problem: these good resolutions are generally made in the spring, during the income tax return and the first tax notices. By the time it's too late…
In fact, taxpayers' room for maneuver is practically zero when filing income tax returns. We can, for example, check our family quotient or decide between real costs or a standard deduction for employees… We can therefore never repeat it enough: if we want to pay less tax next year, we must act before December 31, 2024, and even well before if we take into account the deadline for implementing the few tax exemption operations that are still possible.
Conclusion: there are only a few short weeks left to try to reduce the tax bill to pay in 2025. Here are some avenues to explore among the different systems giving entitlement to a tax credit or reduction.
The tax credit for employing an employee at home is the most common and concerns approximately 4.6 million households. It is equal to 50% of total expenses, including social charges, up to €12,000 per year + €1,500 per dependent child. As it is a tax credit, even non-taxable people can benefit from it.
The second most widely used system concerns donations to organizations of general interest which give right to a tax reduction equal to 66% of the sums paid within the limit of 20% of net taxable income. According to a study by the Dgfip (General Directorate of Public Finances) covering the year 2022, this tax loophole represented approximately 1.3 billion euros, which makes the State the largest donor to associations in France… You therefore only have a few weeks left to join the 3.3 million beneficiaries who have benefited from this tax reduction by combining generosity and financial interest.
Other measures can also be used: the reduction for investment in the capital of SMEs (25% of payments within the limit of €50,000 for a single person or double for a couple), the Pinel rental investment, which ends this year or even investment in forests.
In total, according to the tax administration, around 30% of tax households benefited from a tax reduction of an average amount of €1,388. A significant sum – close to the amount of a net monthly minimum wage – which encourages us to carefully review all the opportunities…
Last important clarification: most reductions and tax credits are not included in the calculation of taxpayers' withholding tax rate. Those concerned thus benefit from tax transfers to their bank account. A first payment from the Dgfip takes place in mid-January, it corresponds to 60% of the reductions and credits to which the taxpayer was entitled in 2024. The balance is then paid in the summer of 2025 from the expenses indicated in the declaration of income sent next spring.
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