Taxes: More than 10 million households owe money to the tax office
The General Directorate of Public Finances (DGFiP) published this Monday, August 1st, a report on the tax return campaign in 2022, based on 2021 revenues. Due to an insufficient withholding tax in 2021, 10.7 million French taxpayers are in debt of 22.5 billion euros accumulated to the state or an average of 2,103 euros per household.
The affected households will be sampled in September. In order to correct the discrepancies between the 2021 withholding tax and the amount each French person owes to the state in taxes, the DGFiP has presented a report on the 2022 tax return campaign.
#IR2022 | Here you will find the press release “Evaluation of income declaration campaign 2022 2021”.
More information https://t.co/WkRvJvjmkR@dgfip_officiel pic.twitter.com/C981ODQr3a
– Ministry of Economy and Finance (@Economie_Gouv) August 1, 2022
According to the data provided, 10.7 million French people have accumulated 22.5 billion euros in debt, which is an average of 2,103 euros per household. “This can be explained, for example, by the fact that your income has increased over the past year or that in January 2022 you benefited from an excessive advance of tax reductions or credits,” specifies the DGFiP in its press release.
The affected households will be charged at once on September 26 if the amount due does not exceed 300 euros. Otherwise, the payment will be calibrated in four installments at the end of September, October, November and December.
13.7 million households are reimbursed 11.5 billion euros
Conversely, 13.7 million tax households will get back €11.5 billion this Tuesday, or an average of €840 per household, due to an overstated tax return.
Two scenarios are then available to you: the first concerns the French, who made expenses in 2021 that entitle them to tax credits and reductions, such as employing a worker at home or taking care of children. If the expenses advanced in the previous year recur from one year to the next, the DGFiP will pay the remainder of these benefits after the 60% advance paid in January. On the other hand, if they are the first expenses of the last year, the reductions and tax credits will be paid to you this summer.
The other scenario for a government refund relates to year-round excess withholding relative to the final tax amount.
Finally, the DGFiP highlighted a 2.7% increase in online tax returns over the past year, representing a total of 34.5 million tax households, or 88.6% of all French households that have opted for this method.