France to Distribute €5.8 Billion in Tax Advances to 9 Million Taxpayers on January 15, 2025
January 15, 2025
Various expenses qualify for tax breaks in France, including charitable donations, renting below market rates, and childcare costs, each with specific eligibility rules.
On January 15, 2025, the French Ministry of Finance will distribute advances on tax reductions and credits to approximately nine million taxpayers, totaling €5.8 billion.
Each eligible taxpayer is expected to receive an average advance of €639, based on expenses incurred in 2024 for home aid, childcare, and union dues.
To receive the advance, taxpayers must have declared expenses eligible for tax breaks in their most recent tax declaration for 2024, covering expenses incurred in 2023.
The transfer will be labeled 'avance crédit impôt', representing an advance payment based on tax breaks declared in the 2024 tax declaration.
The process for activating the immediate advance is straightforward, particularly for clients of accredited service providers, who can easily set up their accounts online.
Taxpayers can check their tax accounts on the official French government tax website to find details about their expected advance payment.
If tax authorities do not have a taxpayer's banking details, a cheque will be mailed by the end of January as an alternative payment method.
The immediate tax credit allows taxpayers to claim 50% of eligible expenses up to €12,000 annually, equating to a maximum credit of €6,000, which can increase for those with disabilities.
This advance system was introduced alongside the implementation of withholding tax, allowing taxpayers to access their tax benefits sooner than before.
Concerns remain regarding the pace of progress on these issues, with stakeholders expressing frustration over the delays in providing broader access to these financial supports.
Despite the success of the immediate advance system, there are notable exclusions: individuals receiving certain disability benefits will not have access until 2027, and parents of children under 6 cannot use it for childcare expenses until 2026.
Summary based on 2 sources
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Sources

The Local France • Jan 13, 2025
Why you could receive extra money in your French bank account this week