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Income Tax - Home Employee Employment Tax Credit
Verified 08 avril 2021 - Legal and Administrative Information Directorate (Prime Minister)
You may be eligible for a tax credit, subject to conditions, to employ an employee employed at home or a personal service rendered by an association, company or registered organisation.
You must have your tax domicile in France.
Job Location
The job must be performed in France at one of the following locations:
- Home (in your home) main or secondary, in a residence for the elderly)
- At the home of one of your ascending perceiving Custom Autonomy Allocation (Apa)
Warning : you cannot accumulate the tax credit for an employee's employment at a home ascending and deduction of maintenance for the same ascendant.
Nature of employment
The service must be performed by:
- Employee of whom you are the direct employer
- Association, company or organisation
- A non-profit organisation for the purpose of home care, whether authorised by social assistance or approved by a social security organisation.
Activities
Services must meet your current needs.
Personal Services (SAP) are activities carried out at home and intended to meet the needs of individuals :
- Home maintenance, small gardening works and small DIY works
- Care of children at home or accompanying them on their journeys (including for children under 3 years and under 18 years with disabilities)
- School support or home courses
- Aesthetic care at home for dependents
- Preparing meals at home (including time spent at shopping)
- Delivery of meals and home shopping and collection and delivery of ironed laundry
- IT and administrative support at home
- Pet treatments and walks for the dependent
- Maintenance, maintenance and vigilance
- Tele-Assist and Video-Assist
- Sign language interpreter, writing technician and full spoken language encoder
- Provision of driving services for the personal vehicle of any person who has a temporary disability and for elderly, disabled or chronically ill persons
- Accompaniment of any person with a temporary disability or of an elderly, disabled or chronically ill person when travelling outside their home
- Assistance in the daily activities of life or assistance in social integration for the elderly, disabled or chronically ill who need such benefits at home
- Personal assistance at home to families in distress and to any person with temporary invalidity (excluding medical care)
- Coordination and delivery of services
In order to use personal service activities, the individual may use a claimant, agent or employer.
Rate
The tax credit is 50% expenses incurred in the year within a ceiling that depends on your situation.
Aid received to finance the employment of the employee at home must be deducted from the expenditure. For example, Custom Autonomy Allocation (APA), optional childcare complement (CMG) or financial assistance from the employer.
Annual expenditure ceiling
General case
The expenditure shall be deducted within €12 000 per year.
This ceiling is increased by €1,500 (not to exceed total €15 000) in the following cases:
- Dependent child (€750 in the case of alternate custody)
- Member of your household over the age of 65
- Ascendant over 65 years
Costs for small projects and IT assistance are only limited.
Nature of delivery | Annual expenditure ceiling (per tax household) |
|---|---|
Intervention for small DIY of a maximum duration of 2 hours | €500 |
Home IT and Internet Support | €3,000 |
Small gardening works | €5 000 |
These expenses are included in the annual ceiling of €15 000.
First year of employment
For 1re year you directly employ a home employee, expenses are deducted up to €15 000.
This ceiling is increased by €1,500, not exceeding the total €18 000 in the following cases:
- Dependent child (€750 in the case of alternate custody)
- Member of your household over the age of 65
- Ascendant over 65 years
Costs for small projects and IT assistance are only limited.
Nature of delivery | Annual expenditure ceiling (per tax household) |
|---|---|
Intervention for small DIY of a maximum duration of 2 hours | €500 |
Home IT and Internet Support | €3,000 |
Small gardening works | €5 000 |
These expenses are included in the annual ceiling of €15 000.
Invalidity
The expenditure shall be deducted within €20,000 per year in the following cases:
- You are disabled and have to resort to a person for everyday acts
- You have a dependent on an invalid person who lives in your home
- You have a dependent child who is entitled to the special education allowance supplement (no increase possible)
Costs for small projects and IT assistance are only limited.
Nature of delivery | Annual expenditure ceiling (per tax household) |
|---|---|
Intervention for small DIY of a maximum duration of 2 hours | €500 |
Home IT and Internet Support | €3,000 |
Small gardening works | €5 000 |
These expenses are included in the annual ceiling of €15 000.
Statement of expenditure
To qualify for the tax credit, you must include the amount of expenses on your tax return.
Home employment expenses paid through the Cesu or Pajemployment are pre-filled on your tax return. You have to check them.
The amount of the tax credit is automatically calculated by the tax authority and shown on your tax notice.
Online Declaration
Internet reporting is mandatory if your main residence is equipped with internet access and you are able to make your declaration online.
2021 Online 2020 Income Statement
Ministry of Finance
Before validating your pre-completed return online, you must verify the information provided and, if necessary, correct and complete it. Keep supporting documents for 3 years if requested by the administration.
Paper Declaration
In 2021, you can report your income on paper if you are in one of the following situations:
- Your main residence is not equipped with internet access
- It is equipped with internet access, but you are not able to make your declaration online
You will use the pre-completed paper return received between April and June 2021. Depending on your situation, this is the return No 2042 or 2042 C. Declaration #2042 RICI groups major tax credits and reductions.
If you do not receive a print (1st declaration, change of address, change in family situation), you can report online or download the necessary declarations from early May on service-public.fr or www.impots.gouv.fr.
Certain income is to be reported on a separate return. You can also download them online. The main annexed declarations are:
- Form 2044 for the declaration of land income
- Form 2074 for the capital gains
- Form 2047 for foreigner income
Before signing your return, you must verify the information provided and, if necessary, correct and complete it.
You do not have to attach supporting documents to your paper return unless they are documents prepared by you (such as a detailed list of your actual expenses). However, keep the documents for 3 years if requested by the administration.
Justification of expenditure
To qualify for the tax credit, you must show the following payments:
- Salaries and employee contributions
- Invoices of service providers
Keep the following supporting documents:
- Attestations issued by theUrssaf if it is a direct job
- Invoices issued by associations, companies or recognised organisations
You do not have to attach them to your tax return, but you must be able to provide them to the tax authority upon request.
FYI : an invoice paid in cash will not be accepted as proof.
Payment of tax credit
A deposit of 60% is paid to you in january, based on the amount of the tax credit received the previous year.
The balance is paid to you in the summer, based on your actual expenses.
If you received an overpayment in January, you will have to repay the overpayment in September.
To calculate the amount of the tax credit to which you are entitled, you can use the simulator Cesu.
Estimate the cost of a home job
Urssaf
FYI : In Paris and the Department of the North, the payment of the tax credit upon payment of the employee's remuneration is currently being experimented with.