Taxpayers who have one or more adult children may place the children concerned in their tax families in order to reduce their income tax amount. But how do we do that? What are the conditions ? We explain how it works.
Your adult child is starting to earn an income, and you are wondering if the latter should therefore be taxed personally? In principle this is the case. But it is possible to attach it to your tax family, as determined by the Ministry of Economy.
The inclusion of a dependent adult child in the tax family of his parents allows him to take advantage of the benefits, Which varies according to the situation:
- If the child is an adult Single without dependentsWithholding allows parents to reduce the escalation of the income tax ladder by benefiting from an increase in the number of family shares according to the number of children attached to the tax home.
- If the child Married, in a civil partnership or with a familyThe reservation does not allow the parents to benefit from the increase in the number of shares. On the other hand, it allows you to benefit from an income reduction (6,042 euros for income tax for 2021) for each related person (for the child and his spouse if married or in PACS and for each of his/her children).
Also note that if the child is in school, the facility also allows you to take advantage of a tax cut that varies according to the course of education:
- €153 for high school
- 183 EUR for higher education.
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Conditions for booking an adult child
To attach, an adult child must have:
- less than 21 years in 1Verse January N-1 (ie 1Verse January 2021 to announce 2022 enter 2021)
- or less than 25 years And continue studying in 1Verse January N-1 or December 31 N-1 (ie – to declare 2022 income 2021 – at 1Verse January 2021 and continue studying in 1Verse January 2021 or December 31, 2021).
In addition to the above conditions, the child must also have been counted as a dependent of the parents, the year preceding the year of their eighteenth birthday.
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- It is possible to include PACS, married or dependent children provided they meet one of the two conditions listed above.
- A disabled child can be placed in the parental home, regardless of his or her age.
How to proceed?
As a parent, to put your adult son into your tax home, the first thing you need to do is ask the latter to give you call request In which he declares the waiver of his own imposition. This reservation request must be written on plain paper and signed by the child. You should keep it, because you may be required to do so in case of an audit by the tax authorities.
Consent of the parent(s) is considered constant when an adult child is attached At the time of the annual declaration of income in the box designated for this purpose.
Note that the attached child It is not necessary to file a personal income tax return. On the other hand, parents must declare the income received by the accompanying child during the whole year based on their own declaration.
Since withholding tax has been introduced, it is also possible to report an attachment of an adult child from the “Manage withholding tax” section by clicking on “Update after an increase or decrease in income”. be careful, This approach cannot replace the annual income declaration.
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What income to report?
The withholding option results in the income of the dependent children being added to the parents’ annual income tax return.
However, some supplementary child income does not need to be entered as they are not taxable. In particular, the following are exempt from income tax:
- Training allowances and trainees’ salaries within the limits 18760 EUR In 2021 (only the excess part is taxable)
- The stipends of students under the age of 26 relate to “jobs” performed during school holidays that are less than 4,690 euros In 2021 (only the excess part is taxable).