The 2023 income declaration campaign will soon be open. And this year, there are new things. Including the special reduction for those over 65. Explanations.
Like every year, it will be necessary complete your tax return. A moment that is often a source of stress for many taxpayers who do not always understand exactly what the tax administration expects of them in order to be fully compliant. And the first element of stress is the deadline for completing your tax return. This year 2024, the dates are as follows: May 23 for residents of departments 1 to 19, May 30 for residents of departments 20 to 54. And finally June 6 for departments 55 to 976.
However, the declaration campaign is not yet open. You will have to wait around April 11 next time to be able to start declaring your income. And as a reminder, this year, the finance law for 2024 revalued the sections of the salary scale. 4.8% since January 1, depending on inflation. As a result, if your income increased by less than 4.8% in 2023, you will pay less tax.
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Amount of tax relief for those over 65
And the tax allowance has also been revalued according to inflation. So, people aged over 65 and disabled people, can benefit from a reduction on income, also increased by 4.8%. Result, for the year 2023, if your total income does not exceed 27,670 euros, you are eligible for the reduction. Its amount will be automatically deducted by the tax authorities without you having to do anything.
For 2024 taxes, the reduction is 2,746 euros, up to 17,200 euros in income. And of 1,373 euros, between 17,201 euros and 27,670 euros in income. To note that the reduction is doubled if your spouse or civil partnership partner subject to joint taxation is also over 65 years old, or disabled.
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Tax deduction: definition and example
But if you earn more than 27,670 euros, the reduction is removed. But good news, thanks to this 4.8% increase, certain retired people who could not benefit from the reduction will be able to benefit from it this year. As a reminder, the tax abatement is defined as a deduction (in amount or percentage) of a sum of money from the tax.
It is therefore a deduction made from declared income, for individuals and businesses, which thus reduces the taxable income base. And this year, people working on fixed-term contracts will also be able to benefit from a reduction equal to 725 euros, compared to 716 previously. “For example: for a 2-week fixed-term contract whose taxable amount is 2,000 euros, the withholding tax base must be 1,275 euros (2,000 – 725). It is on this sum that the rate neutral is applied”, as illustrated Le Figaro.
Passionate about women’s news, Agathe has been deciphering the latest trends for aufeminin since 2022. Her favorite areas? Psychology, nutrition and well-being advice, without forgetting the tips…