Income tax - How are exceptional income taxed?

Earnings are considered exceptional if they exceed your regular earnings and do not renew each year.

For example, the following revenues:

• Reimbursement of a redemption of retirement quarters (for years of study or incomplete years)
• Additional bonus received by an employee for exceptional services
• Allowance of door-step received by an owner
• One-time lump sum payment replacing a small pension

To be considered exceptional, an income must exceed the average taxable income of the preceding 3 years. The comparison applies to the revenues of the tax shelter.

However, some income is considered exceptional regardless of the amount.

This is particularly the case for the following types of income:

Taxation according to the quotient system

If you received an exceptional income in 2022, you can request that it be taxed on the quotient system.

The quotient system avoids the progressivity of the scale tax.

It applies in 2 steps:

1. Add one-quarter of one-time income to regular income
2. Multiply by 4 the corresponding tax supplement

The tax on exceptional income is paid in one installment.

Income to be taxed under the quotient system should not be included in other reported income.

You must enter the total of these revenues in one of the following ways:

• Within the framework provided for on page 3 of declaration No 2042 C (line 0XX)
• On free paper attached to Declaration No 2042

You must detail the amount and nature of the exceptional income to be taxed at the quotient, received by each household member.

Tax returns via Internet is required if your principal residence is equipped with internet access and you are able to file your return online.

For 2023, the tax return is complete.

The 2024 income tax return for 2023 will begin in April 2024.