These are oversights that can cost you dearly. While many families are faced with the dependence of their years, there are tax measures to limit this financial burden. Here are 3 benefits to claim on the tax return.
1 – Income tax credit for home employment
Let’s not begin by recalling that, like all individuals, dependent elderly people are entitled to the 50% tax credit when they employ home-based employees. Staying at home for as long as possible is often sought and may involve the intervention of many professionals: maintenance of the accommodation, meal delivery, gardener… All these expenses are indicated in box 7DB of the additional declaration of income 2042 RICI (with the exception of medical expenses). Please note that there is a general ceiling set at 12,000 euros, ie a maximum annual tax credit of 6,000 euros or 10,000 euros if a member of the tax household has a disability card.
2 – Tax reduction for accommodation in a retirement home
People with a loss of autonomy are sometimes forced to leave their homes to live in a specialized establishment (Ehpad, retirement home, etc.). This type of accommodation is expensive and it is not uncommon for the dependent person to devote their entire pension to it. A major problem when you are taxable on income…
This is why there is a tax reduction. The persons concerned must indicate the amount spent for their accommodation in box 7CD (declarant 1) and/or 7CE (declarant 2) of the annex declaration 2042 RICI. The expenditure ceiling is 10,000 euros per person for a reduction at the rate of 25%, ie 2,500 euros maximum. A device that allows many taxpayers to no longer be taxable.
However, among the 730,000 elderly people cared for in these specialized establishments, only 450,000 households declare this expense to the tax authorities.
Taxes: what is wrong with the current Ehpad tax advantage, of 2500 euros maximum
Credit or tax reduction, what’s the difference?
A tax credit is a tax benefit that you receive in all cases, whether you are taxable or not. If it is greater than the amount of the tax, the surplus (or even the whole if you are not taxable) gives rise to a refund from the tax authorities. Conversely, a tax reduction will only reduce the income tax payable. If you are not taxable, you will not be entitled to anything. Common point between the 2 devices: Bercy makes each year, in mid-January, an advance of 60% on the reductions and or tax credits which you usually benefit from. The balance is paid during the summer.
3 – The payment of alimony
When the income of their years is not sufficient, it happens that families have to finance part of the costs linked to dependency. The tax authorities consider this to be alimony. Each person who contributes to it can indicate in box 6GU of his declaration the amount he pays his year. This will be deducted from its income by the tax authorities before calculating the tax. Conversely, the dependent person will have to declare the corresponding sum in his declaration of income. However, in the case of dependency, there is an exception: if the aid is paid directly to the establishment and not to your year’s account, then you can deduct it without him having to declare on his side!
What you can deduct from your income tax by paying child support
