INCOME TAX. The 2023 tax return campaign requires owners of residential property to complete a new tax return. We will explain everything to you.
[Updated April 13, 2023 at 9:48 a.m.] The 2023 declarative campaign has been open since Thursday, April 13. And this year, a major novelty comes into play. Each owner (natural or legal person) is now subject to a new reporting obligation. Each property for residential use must be declared for tax purposes in the “Manage my property” space on the site impots.gouv.fr. This new declaration comes after the abolition of the housing tax for main residences. The objective: to determine the owners still liable for the housing tax (secondary residence, rental accommodation) or the tax on vacant accommodation. In total, 34 million owners are affected by this new declaration to the tax authorities, for 73 million residential premises in France. In the event of failure to comply with this new tax declaration obligation, or of incomplete declaration, a fine of a fixed amount of 150 euros per premises may be applied.
Want to calculate your income tax amount so you can predict what’s in store for you at the end of the summer? The easiest way is to use the income tax simulator provided by the tax authorities. Before starting the simulation, get your hands on the following: net taxable income, expenses, tax benefits and withholding taxes. The more precise elements you provide, the more accurate your income tax simulation will be. You will then obtain an estimate of your tax, with the application of a discount or not, and you will know if you are liable for a balance in the summer with regard to what you have already paid.
Prefer to calculate it yourself? Calculating income tax will take you a little longer. You will have to get your hands on your net taxable income, then determine the number of shares in your tax household, deduct your expenses and then apply the income tax scale (read below), without forgetting your tax advantages (credits and tax cuts).
Withholding tax consists of deducting income tax each month from salary or retirement pension. Thus, the payment is spread over twelve months and the one-year lag removed. In addition, the tax automatically adapts to the amount of income received. The taxpayer continues to declare the income of the previous year to the tax authorities each spring. The calculation of the withholding rate is based on the data provided in the declaration: income, dependents, deductible expenses, expenses eligible for tax credit, etc.
To limit the impact of inflation, the income tax scale was reassessed in September 2022 by 5.4%. A measure included in the 2023 finance bill. To put it simply, if your salary has not increased this year, your tax should go down. This revaluation concerns all tranches. From 2023, if your household has an income of less than 10,777 euros, it will not be taxable on the income of 2022. Until then, the ceiling was set at 10,225 euros. Thanks to the indexation of the income tax scale to inflation, a single person with a monthly income of 1,322 euros would have had to pay 129 euros in taxes in 2022. Next year, she will not pay nothing. Here is the new complete scale for the 2023 tax return:
All of the income (salaries, pensions, pensions, property income) that you receive over the tax year is studied by the tax authorities. First, it is necessary to determine the net taxable income – information that you can find on your payslip if you are an employee. As a reminder, a flat-rate deduction of 10% is applied for professional expenses. If this allowance is less than your total business expenses, then you can deduct the amount of your actual expenses. Have you determined your net taxable income? You must divide it by the number of shares in your tax household. This gives you your family quotient. The family quotient is used to determine taxable income for the tax household. Apply the amount obtained to the tax scale.
Remember that the family quotient is set according to the situation of the taxpayer’s family and the number of dependents. It is used to establish the reference income used to calculate income tax and to calculate the amount of certain social benefits. It can be determined by the CAF or by the tax authorities. But then, how do you calculate it? Two parameters come into play. The taxable income of the year N-1 for taxes, and N-2 for the Caf. Then, the number of tax shares in your household, determined through a grid (available below).
To calculate this family quotient, the tax authorities divide the amount of your taxable income by your number of family quotient shares. Here is the calculation formula: net taxable income / number of tax shares. The result is subject to the progressive scale of income tax (also in this article) and finally multiplied by the number of shares in your tax household to obtain the amount of income tax due. The progressive scale includes 5 brackets from 0% to 45% depending on your salary level.
Do you think you are liable to the tax authorities? Have you done your little math and think you’re eligible for a refund for this 2023 declarative campaign? It’s entirely possible ! Some taxpayers were pleasantly surprised to receive a refund, directly to their bank account, from the tax authorities during the summer. In detail, only two scenarios allow us to find ourselves in this situation. First, upon consulting your tax return, the tax authorities assessed that your source deductions were greater than the total amount of income tax for which you are liable for the tax year. The administration therefore reimburses the difference. Second option, you receive the remaining installment of the regular tax credit collected in mid-January (example: home employment, childcare costs for a child under 6 years old outside the home…). There is nothing to do beforehand other than checking your bank details.
Are you eligible for a refund? This is the case if the amount deducted as part of the withholding tax in 2022 is greater than the final amount of your tax or if you are entitled to a refund of tax reductions or credits. The details of the calculation of your tax are indicated on your tax notice. This refund will be made by transfer to your bank account. It will, in most cases, be paid on either July 21 or August 2, 2023. It may also be paid out in late summer depending on your circumstances.
After filing the tax return in the spring, the filing campaign is not over yet! Indeed, from the month of July, the first tax notices are sent by the tax authorities. Here are a few potential key dates to keep in mind in 2023. Official dates should be released in the coming weeks:
Except in special cases, your income tax notice will be available in your personal space, depending on your situation, between July 25 and August 5, 2023! Here is the full schedule:
