After an initial salvo on Thursday, July 21, some taxpayers will again receive a refund by wire transfer or check this Tuesday, August 2 from tax authorities after overpaying income taxes throughout 2021.
This summer refund affected 12.7 million taxpayers last year, e.g a total of 10.4 billion euros, ie an average sum of 819 euros. So how do you know if you’re one of those affected?
1/Who are those who will receive money from the treasury?
DBoth situations can lead to a refund as determined by the Ministry of Economy:
- You are entitled to a refund of tax credits or credits for certain expenses incurred in 2021 such as donations to charities, spending on homework, childcare, or rental investments. In this case, the amount refunded will be the balance of the tax credits and tax credits to which you are entitled, taking into account the 60% advance that you may have already been paid in January 2022;
- Your withholding tax deductions made in the last year were higher than the final tax amount. This can e.g. This may be the case, for example, if your income has fallen and you have not reported this to the tax office or if you have reported the birth of a child late, which entitles you to half a share surcharge. In this case, the refunded amount corresponds to the overpaid withholding tax in 2021.
To ensure there is no fraud, the Treasury requires online transfers to be marked “REMB TAX REVENUS” on bank statements and identified as issued by “DGFIP FINANCES PUBLIQUES”. Please note that transfers are only possible if the tax office knows your bank details. If this is not the case, those affected will receive a check sent home in the coming weeks.
The details of how your tax is calculated will be given on your tax assessment notice, which will be made available to you on your online space or by post between the end of July and the beginning of September 2022.
3/Who are those who owe money to the tax authorities?
On the other hand, other less-favored taxpayers will owe the tax authorities money if the amount deducted at source was insufficient in 2021. In this case, the credit will be debited in one go from September 26, 2022 if the amount is less than or equal to 300 euros, or in four direct debits from September 27 (September, October, November and December) if it is greater than 300 euros.
This is the case, for example, if the withholding tax amounts paid in 2021 are insufficient because you have not updated your withholding tax rate, or if you benefited from a reduction advance or an excess tax credit in January 2022. Around 10.8 million tax households had to pay a total of 16.3 billion euros or an average of 1,509 euros last year.
3/Who are the ones taking on the tax authorities?
No change in family situation or professional life in 2021? You don’t have to pay any withholdings throughout the year, but you don’t get a refund either. This affects the majority of taxpayers, ie 14.4 million tax households last year.