Many parents make mistakes in their tax return and often miss out on several tax reductions and credits.
Every year the General Directorate of Public Finances (DGFIP) pre-fills taxpayers’ income tax returns, but never entirely. Completing the boxes that remain empty requires a certain vigilance, particularly for parents. They must indicate their information, that of their spouse and register their dependent children in the same form. “Parents rarely forget to declare a marriage, a divorce, joint custody, or even childcare costs with a nanny or daycare,” an employee of a public finance center in Île-de-France told us.
“On the other hand, there are 5 boxes in particular in the income tax return which are regularly forgotten by parents. Because of this, the households concerned often miss out on several reductions or tax credits to which they are entitled,” laments the DGFIP employee. “Others make mistakes that can cost them dearly,” she adds.
The first common mistake concerns alimony. These pensions must be declared twice: in the “resources” category for the person who receives them, and in the “expenses” category for the person who pays them. When a parent gives a pension to an adult child not attached to the tax household, he or she must mention the amounts in boxes 6EL or 6EM, while box 6GU is used to enter pensions intended for minor children. Conversely, children or parents who receive alimony (1.1 million taxpayers according to the DGFIP) must indicate the amount on line 1AO of their income tax return.
The second pitfall concerns the income of dependent children. When parents choose to include their adult children, students or not, in the tax household, they must not forget to include their income in the declaration. Concretely, this is the income received by a child who has a student job, does an internship, follows a work-study program or receives unemployment benefits. This income must be declared in boxes 1CJ, 1DJ, 1CP or 1DP, in the “salaries and wages” section. As a reminder, if the child is a student, he or she benefits from an exemption of up to 5,405 euros. Parents must then only declare income that exceeds this threshold.
The third common omission concerns tuition fees. Many families forget to declare these expenses, which nevertheless entitle them to a tax reduction of 61 euros for a middle school student, 153 euros for a high school student and 183 euros for a higher education student. These costs must be indicated in box 7EA or 7EB for shared custody situations.
The fourth point of attention concerns after-school care costs. When parents have their children under 6 looked after outside the home, with a childminder, in a crèche, or even in a leisure center, the amounts paid must be mentioned in box 7GA of the declaration. If the child is looked after in after-school care or in a leisure center, tax receipts must be collected from the organizations providing care. These childcare costs entitle you to a tax credit equivalent to 50% of expenses and which can increase up to 1,750 euros per child.
The fifth box that is often overlooked concerns the status of a single parent. Parents living alone with their children must check box T on the form. While the tax authorities normally grant a half tax share to parents with a dependent child, single parents can claim another additional half tax share. Enough to increase the family quotient of the tax household. An important detail when we know the logic of the French tax system: the higher the family quotient, the less the amount of income tax to pay will be significant.
