The reform of the payment of income tax changes the allocation of tax credits. Eligible households will receive the first deposit on January 15, 2019.
Payment in two steps
The great beginnings of the withholding tax have so far unfolded without a hitch according to the government. But a gray area remains and worries households about the mechanism of the tax credit. But since September, the state tries to reassure the population by saying that beneficiaries will receive their refund. According to the ministry, 8.8 million households will receive a tax credit. However, this will take the form of two installments.
The first, for a time envisaged at 30%, will finally be set at 60% of the total amount to be pocketed. A gesture in favor of purchasing power, a great cause that currently preoccupies the French. The payment must also begin tomorrow, January 15, 2019, to anyone who has declared expenses eligible for a tax credit. In fact, planned expenditures make it possible to benefit from compensation by the State. The second and final installment is expected to arrive at the beneficiary’s account in July. It will complete the rest due to the state, the remaining 40%.
Payment payments can take two different forms. Households that have provided their bank account details to the tax authorities will receive two bank transfers. Conversely, those who have not provided bank references should receive a letter by the end of January. It will be accompanied by a check to be cashed by the recipient. It will be the same in July for the second installment.
Specific conditions to cash installments
Now, these down payments only support certain expenses that incorporate tax credit. He announces that “the donations, the employment of an employee at home, the expenses of childcare, the expenses of rental investment, the expenses of lodging in a pad and the union dues” are the only ones to integrate the two installments. Tax credits related to the remaining expenses that do not fall into the categories mentioned will be paid in the summer. Bercy, however, did not give more precision as to a fixed date.
Finally, the deposit is calculated on the income statement made in the spring of 2018 for the 2017 expenses eligible for the tax credit. However, if the household no longer enjoyed in 2018 the financial advantage it enjoyed in 2017, it will be obliged to return the money in September. Be careful not to take for granted the down payments. On the contrary, if in 2017 the household has not benefited from any tax credit, then it will not be able to receive installments.