Family Quotient and Income Tax Calculation

Extract

[...] The application of the family quotient therefore has the consequence of attenuating the progressivity of the tax. The resulting tax advantage is therefore for equal family responsibilities all the greater as the income of the tax household is high. > To overcome this disadvantage, the legislator capped the advantages resulting from the family quotient. Thus, for minor children as well as for single major children who have requested to be attached to their parents' tax household, the tax reduction corresponding to each additional half-share cannot exceed ?1,570 for the taxation of 2020 income. [...]

[...] > The net total thus obtained is however susceptible to corrections, notably certain charges that could not be taken into account for the evaluation of the net income of various categories are expressly deductible from the global income; but beforehand by the imputation of a certain number of deficits A - Imputation of deficits > It may happen that the deductible expenses are more important than the income. The taxpayer will therefore find a deficit instead of an income. The fiscal fate of this deficit is governed by a principle accompanied by numerous exceptions that ultimately empty it of its content: 1. [...]

[...] b - Payments in case of divorce or separation > Firstly, it may be a compensatory allowance in capital. If the allowance is paid in instalments and over a period exceeding twelve months, it is deductible from the taxable income of the person paying it (if it is paid over a period not exceeding twelve months, it gives rise to a tax reduction of 25% of the total amount paid, capped at ?30,500). > The payment can also take the form of alimony: the person paying the alimony can deduct it from their income on the condition that its amount has been set by a court decision. [...]

[...] B - Income Taxation > Coexist two regimes : - the controlled declaration - and that of micro-enterprises. 1. The regime of micro-enterprises > The legislator put it in place to encourage the development of activities of limited scope, often accessory to a salaried activity. When the annual turnover, excluding taxes, of such an activity does not exceed ?72,600 per year, the taxpayer is not required to file a special declaration, he simply inscribes on his global income declaration the amount of his receipts, the tax authority deducting automatically 34% of professional expenses with a minimum of ?305. [...]

[...] Life Annuities : Periodic income paid until the death of the beneficiary. Exempt or partially exempt income Examples : Family allowances ; Prime d'activité ; Apprentice wages (within certain limits) ; Internship gratification ; Wages for young people under 26 years old under the ceiling ; Modest gifts offered by employer. B. Deductions Flat rate deduction of 10% For professional expenses of employees. The taxpayer may prefer the actual expenses if they are more advantageous. Pensions and free allowances : Specific deduction of 10%. [...]