Did you receive an incentive bonus last spring or winter? Should it be declared to the tax authorities? Yes, if you have chosen to take the cash without placing the sum in a company savings plan. But it remains to be seen which part of the declaration to add this bonus…
Question from Ondine, May 3, 2023
Hello, on which line should I declare an incentive bonus? Thanks in advance.
Hello Ondine and thank you for this question. Before going into the details of the lines of the income tax return, two important reminders. The first: if you receive a profit-sharing bonus in this month of May 2023 (or in April) in respect of your company’s 2022 results, this bonus is part of your 2023 income and in any case has no reason to to be included in the current 2022 income declaration. The second: if you have chosen to place your premium on an employee savings plan (PEE or collective PER, among others), you are exempt from tax AND declaration.
You are going to receive your employee savings bonus… should you take the cash or invest?
Are declared to the taxes in this spring 2023 only the profit-sharing bonuses (and participation) received during 2022 in cash: when you choose not to invest the sum and therefore to receive the money directly.
A pre-filled bonus and adds all of your salaries
If, Ondine, you are referring to a bonus received in cash in 2022, your employer should include it in a pay slip, or publish a dedicated slip. You have already paid social contributions (CSG-CRDS 9.7%). And your employer has theoretically already included this bonus in the annual total of your taxable net salary which generally appears on the payslip for December 2022. Unless there is a transmission error between your company and the tax authorities, your profit-sharing bonus is therefore already pre-filled, the line 1AD (Or 1BJ if you are declaring as a couple): the box is dedicated to your wages and earned income.
Indeed, the profit-sharing bonus is simply added to the annual total of your salaries, with the risk, if you are taxable, of increasing your income tax to be paid in 2023. This bonus is taxed at the progressive scale applied to income from work, like the rest of the sums received through your salaried employment.
Salary: these 3 bonuses that you must not forget to declare for taxes