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Income Tax - Liability or Disability Savings Premiums (Reduction)

Verified 08 avril 2021 - Legal and Administrative Information Directorate (Prime Minister)

Insurance premiums for life annuity and disability savings contracts are subject to a conditional income tax reduction.

Survival annuity contract

This is a contract you enter into to guarantee the payment of income to a person with a disability.

These may include:

  • Direct Line Parent (ascending or downhill)
  • Parent in Collateral Line up to 3e degree (brother, uncle, niece for example)
  • The person living under your roof and at your charge.

Disability savings contract

This is a contract you enter into to guarantee future income when you have a disability that prevents you from earning a living under normal conditions.

You must not have obtained the settlement your pension rights.

The contract must be for at least 6 years.

Premiums paid in the year will entitle you to a reduction equal to 25% within the limit of €1,525 (or a maximum reduction of €381.25).

The amount of premiums eligible for reduction shall be increased by €300 per dependent child (€150 per child in the case of alternative residence).

In the case of the subscription of an annuity contract and a disability savings contract, this limit applies to all contracts concluded.

  FYI : to receive the tax credit, you must have your tax home in France.

On your 2042 CIIN 2021 return, you must indicate the amount of premiums paid in 2020 on your life annuity or disability savings contract.

Keep the certificate issued by the insurer when requested by the authority.

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 declarationchange 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:

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.