box 1AJ to be completed absolutely by 700,000 retired people (it protects your income)

Taxes are compulsory deductions made by the State on income and the property of taxpayers in order to to finance public spending and services to the population. Taxes can be levied on salary income, profits from commercial activity, real estate, inheritances, donations, etc. The different forms of taxes include income tax, VAT, property tax, council tax, corporation tax, etc.

The amount of taxes to be paid depends on personal and professional situation of each taxpayer and is determined according to rules and rates set by the tax legislation in force. It is important to respect tax reporting and payment obligations to avoid any dispute with the tax authorities.

A box is important to fill in for retirees

In general, to pay your taxes, you must complete a tax return and pay the amount due within the deadline. Box 1AJ (“Replacement income”) on the income tax declaration concerns income received by retired people, such as retirement pensions, life annuities, provident annuities, etc. It is important to fill out this box precisely and exhaustively because this income is subject to income tax and must be declared to the tax authorities.

Failing to declare this income could result in a tax adjustment, penalties or sanctions from the tax authorities. In addition, failure to comply with reporting obligations can result in financial consequences and administrative complications for the taxpayer. It is therefore essential to fill in all the boxes correctly of your tax return to avoid any problems with the tax authorities.

Take this step to reduce your taxes

Carrying out this approach firstly allows you to reduce the tax levied on the premium. In addition, by notifying this retirement bonus as exceptional income rather than as usual income, this also helps to reduce the withholding tax, or at least not to increase it. To fill in this box, it’s very simple. You have to go to box 1AJ entitled “Salaries” of the income declaration. Then, you should deduct the amount of the premium from the total entered in this box. For the amount of the premium, it must be entered in box 0XX, “Exceptional or deferred income to be taxed according to the quotient system”.

700,000 French people who have decided to retire in 2023 are entitled to this adjustment on their income tax return. IIt is possible to pay your taxes in different ways, whether in paper or digital version. You can perform paying your taxes online via the tax website. This payment method is fast, secure and convenient. You can use your bank card to pay online.

A graduate of CELSA, I have always been passionate about journalism since my early childhood. Originally from the South of France, I left Nice, my hometown, to come live in…