The Ehpad tax reduction will not be transformed into a tax credit in 2023, unless there is an unlikely reversal of the situation. The 2023 budget groomed by the government for the needs of 49.3 has discarded this measure. However, this Ehpad reduction is far from benefiting all the elderly people housed in “retirement homes”. Figured illustration.
1,174 euros, the average annual reduction
“You live in an Ehpad (accommodation establishment for dependent elderly people) or in an independent residence (ex-housing-home). Do you pay taxes. You can benefit froma tax reduction. Extract from the government site pour-les-personnes-agees.gouv.fr, section “financial aid in Ehpad”, alongside the APA (personal autonomy allowance) or housing aid. But as this site points out, by definition, this tax cut simply reduces taxes. Non-taxable households do not benefit.
Very precisely, this tax reduction is equivalent to 25% of expenses in accommodation for the elderly, within the limit of 10,000 euros of expenses per person accommodated, after deduction of the APA of expenses subject to reduction. Result: on average, the reduction reaches 1,174 euros per year according to the General Directorate of Public Finances (DGFiP), for a maximum reduction of 2,500 euros.
230,000 beneficiary households
This average reduction of €1,174 has benefited 230,000 beneficiary households in 2021, according to DGFiP statistics published last May. A relatively constant number of beneficiaries, year after year.
420,000 households declare accommodation costs linked to dependency
However, a little more than 420,000 households declare accommodation costs in nursing homes or independent residences, according to DGFiP statistics dating back to 2020. The detailed data of the annual declaration even make it possible to identify 450,000 taxpayers declaring such expenses, counting the two members of the same household who are both housed in a residence for the elderly.
How to explain that 190,000 households declaring accommodation costs in this type of establishment do not benefit from the reduction? The DGFiP confirms these figures and provides two explanations. First reason for this absence of reduction for these almost 200,000 households: “those who are not taxable after application of the tax scale”, and for whom the reduction has no effect, for lack of income tax to be paid .
Second reason, quite close: “Those who may be subject to other tax reductions which are accounted for upstream of this one. For example, if the household also benefits from a tax reduction for donations made to organizations helping people in difficulty, and that this tax reduction is sufficient to cancel its tax (…) then it does not is not counted as a beneficiary of the “Ehpad” tax reduction. »
In fact, mathematically, if the transformation of the reduction into a tax credit had been voted, these 190,000 households would automatically benefit from it.
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730,000 elderly people cared for in nursing homes and independent residences
730,000 people elderly cared for in the various accommodation establishments mentioned above, according to DREES, the equivalent of INSEE for health and employment statistics. Why do residents, their relatives who declare for them, or members of the same tax household “forget” to claim this tax benefit? Lack of information ?
MoneyVox has surveyed the CNSA (National Solidarity Fund for Autonomy) and several associations representing residents in nursing homes, for a conclusion: no one has any element of explanation… or at least dares to provide one.
Up to 1,174 euros lost! These 5 tax credits and reductions that you forget to claim
1,363 euros of remainder to be paid with 916 euros of resources per month
€2,004 : here is the median price of accommodation establishments for dependent elderly people (Ehpad), each month, according to the CNSA. But modest residents can benefit from various aids. Here is the written response from Bercy, in 2018, following a question from Senator Yannick Vaugrenard in 2018 on the Ehpad reduction and the cost of this accommodation: “The question of covering the expenses mentioned must also be assessed in taking into account all the aid and allowances of a social nature paid by the State and local authorities which already make it possible to reduce the cost of dependency. This is the case, for example, with the personalized autonomy allowance (APA) for dependent elderly people, which is exempt from income tax (…)”.
MP Christine Pirès Beaune is at the origin of the amendment transforming the Ehpad reduction into a tax credit within the framework of the 2023 budget, initially voted by the deputies but ultimately not retained by the government in the text on which it plays its part. responsibility.
In the explanatory memorandum to its amendment, it provided the following figures, taken from a DREES report dating from 2016: “Each month, on average, residents who do not benefit from a tax reduction receive 297 euros of APA, 127 euros housing assistance and 301 euros ASH (social housing allowance). Their remaining charge then amounts to €1,363 for resources reaching an average of 916 euros per month. “A significant gap … and the PS deputy even believes that” this remaining charge has worsened since “.
4.3 million beneficiaries of the work-at-home tax credit
Work-from-home expenses were eligible for a tax reduction until the end of the 2010s. Before this benefit was transformed into a tax credit, a tax credit available to anyone who declares such expenses since 2018. Today, this tax credit benefits 4.3 million tax households, for €1,111 average advantage.
Tax statistics also show that this tax credit primarily benefits the wealthiest households, but that a third of the beneficiaries are still part of the poorest 50% of the population. However, the nursing home tax reduction in fact excludes this same half of the population.
All the more reason to transform the tax reduction into a credit? Other avenues exist: the Libault report on “old age” and autonomy, submitted to the government in March 2019, proposes, for example, remove Ehpad discount to create a more comprehensive allocation targeting a wider range of residents.
Budget 2023: APL, property tax, taxes… These new advantages withdrawn by the government
Forgot to claim this tax reduction? Good news: you can still correct your 2022 return on 2021 income. You have until December 14 to correct your declaration on impots.gouv.fr and thus claim the forgotten tax advantages.
Our file on forgotten tax credits and reductions: