whether you need to reunite your children with your home, what is the best solution?

Your children are young adults and you wonder if it is financially interesting to demand a tax deduction? To find out, run the simulations …

The question of tax context arises only if you have adult children, or student children. The outlay may be required for children under 21 years of age at the beginning of the year to which the declaration relates (born in 2000 or later for the 2022 tax), or under 25 years of age (born in 1996 or later), if they continue their studies or even for those who turned 18 in 2021 (born in 2003).

How to tie your kids to your tax haven

Are tax deductions for adult children still interesting?

There is clearly a possibility calculation to make! answers Charly Tournayre, director of cultural heritage engineering at Thesaurus. But beware: the connection is not always interesting for the parents. Attaching a working child can be a miscalculation. It all depends on whether the child has received income and whether it is a student.

The first reflex is to simulate your personal situation, Charly Tournayre continues. Either by using the official simulator or by testing the two formulas directly on your online declaration. You have to test two or even three options: Partly by attaching your children, and partly without expenses but possibly by deducting maintenance. And it is of course necessary to make an extra simulation, for the child alone, in the absence of attachment.

It all depends on whether the child has received income and whether it is a student

When you are not founding your childrenyou can actually benefit from one alimonyceiling 6042 euros. This Maintenance Statement Box 6EL is deductible if the adult child is not dependent and if this child needs financial assistance. It can be deducted whether the child lives with you or not, but you must be able to present proof of payment of the pension and need for expenses (rent, food, etc.) if the Treasury asks you to do so. And the adult child must enter these amounts in the category of resources box 1AO, heading your income then pensions, retirement … of his own statement.

You can also use one one-time deduction of 3592 euros, for accommodation and board (same box 6EL). Less restrictive solution as it does not require supporting documents (1)but only if you are hosting an adult child without adequate resources for the year! Again, this fixed pension must be stated by the adult child in the income section of its own declaration.

Example for a non-student child

A couple each receive 25,000 annual salary and hesitate to link a child born in 2001, non-students, who have their own apartment and in turn have received 5,000 in salary in 2021.

  • With attachment: tax off 2517
  • Without the connection: tax off 2616
  • Without attachment and by declaring one child allowance of 5000: tax off 1817

The difference certainly turns out to be small (99) when the comparison is limited to the possibility of adhesion or not. By connecting the maintenance contribution option with the absence of outlays, this couple saves 799 compared to the simple tax outlay.

In the case of him, if he declares his income separately, the 20-year-old non-student child will not be not subject to VATwith or without pension.

For a child without activity who lives with his parents

The same married couple (who each receive 25,000 annual salary) are considering attaching their son born in 2002, unemployed and without income in 2021. In the absence of rent justified by the tax authorities, they hesitate between outlays and the fixed deduction.

  • With attachment: tax off 1798
  • Without the connection: tax off 2616
  • Without attachment and use of one-time deduction of 3592: tax off 2041

For a young adult without activity and living in your home, the tax connection clearly appears to be the most sensible solution.

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Attaching a Student Child: Specific Benefits?

The attachment makes more sense when your child is a student. On the one hand, you benefit from one exemption from the first 4690 euros for your child’s student job: income not to be declared, although it is advisable to indicate this exemption in the box reserved for remarks. On the other hand, you can enjoy one tax reduction of 183 euros pr. attached child after university studies (indicate box 7EF).

Example for a student child

The same couple (who each receive 25,000 in annual salary) hesitate to tie up their daughter, born in 1999, who continues her studies, pays for her own housing and received 5,000 through student jobs in 2021.

  • With attachment: tax off 1615
  • Without the connection: tax off 2616
  • Without attachment and by declaring one child allowance of 5000: tax off 1817

For a child enrolled at university, thanks to the exemption from income from student jobs and thanks to the tax reduction for higher education, the affiliation is more profitable – from a tax point of view – than maintenance allowance.

In any case, their student daughter will not pay income tax.

What has changed for your child, to be attached or not?

The decision on outlay must by definition be made by agreement with your child, student or not. Because giving up his income, and thus becoming a taxpayer, can give him rights. This allows, for example, to open a People’s Savings Booklet (LEP), which currently pays 2.2% excl. treasure!

This possibility calculation also applies after a divorce

Is affiliation more important for Aiss households?

Plus the income, and thus the marginal tax (2), are high, the more the additional half of the attached child will have an impact on the tax to be paid, insists tax specialist Charly Tournayre. Most often, the tax connection for a student child without income is interesting for the parents, he adds, and immediately reminds that the tax connection remains from case to case. Concluding advice: This possibility calculation also applies after a divorce, where the parents inform the children on a common basis. It’s up to everyone to test.

Example of a student living with his mother

This time, a single mother receives 50,000 in wage income. Her 19-year-old son is a student, with no income and lives with his mother.

  • With attachment: tax off 5647
  • Without the connection: treasure 7422
  • Without attachment and by declaring one one-time pension of 3592: tax off 6344

This taxpayer, who can benefit from the imposition and reduction of tax on higher education, has every interest in declaring his son a dependent student.

For a non-student child

ONE pre-single (50,000 in wage income) has a 20-year-old daughter, not a student. She has her own home, touched 5000 in 2021 and will not be liable to tax in any case.

  • With attachment: tax off 7180
  • Without the connection: treasure 7422
  • Without attachment and by declaring one child allowance of 5000: tax off 5922

If this taxpayer with a comfortable income can justify assistance to his daughter in need, it is ultimately preferable to prioritize alimony and therefore waive outlays.

(1) The Directorate-General for Public Finance (DGFiP) writes on impots.gouv.fr: If you take care of all the needs of a child or a distressed ascendant living under your roof, you can deduct a lump sum without justification of 3592 euros. Please note: if the child’s home is only for a fraction of the year, this amount must be reduced in proportion to the number of months in question and any commenced month must be retained.

(2) The highest tax rate applicable to your income: for example, the 30% limit for a single person with a taxable income of 50,000 euros.

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