Who are these taxpayers who risk ending up with an overpayment in January 2025?

In order to allow taxpayers to reduce their taxes, the tax administration offers them the possibility of benefiting from the tax credit. However, the amount of this tax advantage may vary in the event of a change in income or a change in situation. This type of modification can sometimes result in an overpayment that the taxpayer will have to reimburse to the tax authorities.

This type of situation is likely to occur soon, during the payment of the tax advance scheduled for January 15, 2025. This is an advance of 60% of the tax credits which will concern people who meet the conditions for take advantage of this tax relief. As a reminder, the tax credit is put in place to cover certain costs, such as childcare, the employment of household help, gardening or even in the case of donations to humanitarian associations.

In the event of a change in situation, the tax credit could be reduced or even eliminated. “If your childcare expenses have decreased in 2024 compared to 2023, the amount of your tax benefit is likely to exceed your tax reductions and credits for 2025,” explains the UFC que Choisir. In these cases, the advance paid in January will cause an overpayment for taxpayers. They will then have to repay the surplus received in September 2025. However, there is a solution to avoid finding themselves in such a situation.

How can taxpayers avoid an overpayment by the tax administration in January 2025?

For taxpayers who opt for automatic debit and take advantage of tax credits, it is not uncommon to find themselves with overpayments that they must repay to the tax authorities. To avoid this, it is necessary to frequently update your situation in your personal space on the tax administration website, taking care to indicate all the changes that have occurred during the last year. As for people who are worried about receiving an advance with an overpayment in January, there are two solutions.

The first consists of waiving this advance, by accessing your particular space, then the “Withholding tax” section. The taxpayer must then click on “Manage your advance of tax reductions and credits”, then on “I wish to renounce my advance”. This option is recommended for people who have not used services that allow them to benefit from a tax credit. For those whose expenses for this type of service have decreased, it is recommended to click on “I wish to modify my advance”, then to indicate the new amount of these costs.