why 8.8 million French people will reach 627 € on average, this Tuesday

627 €. This is the average amount of the sum that will be paid this Tuesday, January 15 to the bank account of 8.8 million French by the tax services of the Ministry of Economy. An announcement that deserves explanation.

The Treasury will pay on average € 627, Tuesday, January 15, the bank account of 8.8 million French. A pretty amount, which hides in fact great disparities, justified by the entry into application of the withholding tax.

Withdrawal at source: steps for employees and retirees.

Withdrawal at source: steps for employees and retirees.
                                    - Document Ministry of Economy, Finance, Action and Public Accounts

This money, which represents 5.5 billion euros for the State, corresponds to the credits and tax reductions that will benefit the taxpayers concerned in 2019, on the basis of what came to imputation of their tax in 2018. Car Withholding tax changes the whole game. In fact, the tax department now removes a portion of the income tax each month directly from the salary or the retirement pension. But without taking into account any credits and tax cuts: these will be declared in May-June by taxpayers and calculated by the Fisc in September.

Childcare, union dues and other home work

In theory, taxpayers should therefore pay more than they actually owe and be reimbursed in the fall by the state. To avoid this, the government decided to pay them 60% of the principal credits and reductions to which they will be entitled. That is an overall amount of 5.5 billion euros whose French will not have to advance: 627 € on average per taxpayer.

This down payment concerns expenses described as "constant" by the head of the Treasury, Gérard Darmanin. In particular the costs of care or the employment of home-based staff, situations for which the reductions can be significant, accommodation costs in Ehpad, rental investment expenditure (Duflot, Pinel, Scellier, DOM, CensiBouvard) and other union dues.

Regularization of the balance at the end of summer, beginning of autumn

"Based on your declaration, next spring, of your 2018 income and expenses, the final amount of your tax credits and reductions to which you are entitled will be calculated and will be adjusted in the summer, taking into account the amount of the advance paid in January, "said Bercy last week. The taxpayers will then receive the money that will be due to them beyond the amount paid on Tuesday ... or will have to pay the Treasury if it turns out that they were entitled to less than what they will have received in advance payment.

The French, commented the Minister of Public Accounts, Gérard Darmanin in a press conference on January 2, will receive a "cash advance." It is a very nice simplification: they will have no administrative procedure to do and, at the same time time is a help, dare I say, for the beginning of the year. "